Zhongzhi Pharmaceutical Holdings Ltd. (3737) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Jilin Province Huinan Changlong Bio Pharmacy Co. Ltd.

Zhongzhi Pharmaceutical Holdings Ltd.

China Shineway Pharmaceutical Group Ltd.

Shandong Xinhua Pharmaceutical Co., Ltd.

Sihuan Pharmaceutical Holdings Group Ltd.

CK Life Sciences International (Holdings), Inc.

HBM Holdings Ltd.

Wai Yuen Tong Medicine Holdings Ltd.

PuraPharm Corp. Ltd.

Hin Sang Group (International) Holding Co. Ltd.

China Health Group, Inc.

Why is Zhongzhi Pharmaceutical Holdings Ltd. ?

High Management Efficiency with a high ROE of 12.09%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 24.50

Poor long term growth as Operating profit has grown by an annual rate -11.90% of over the last 5 years

Negative results in Jun 25

ROCE(HY) Lowest at 1.87%
INTEREST COVERAGE RATIO(Q) Lowest at 2,402.8
RAW MATERIAL COST(Y) Grown by 12.18% (YoY)

With ROE of 1.88%, it has a Very Attractive valuation with a 0.57 Price to Book Value

Over the past year, while the stock has generated a return of -10.11%, its profits have fallen by -81.6%
At the current price, the company has a high dividend yield of 642.3

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.25% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.11% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhongzhi Pharmaceutical Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Zhongzhi Pharmaceutical Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhongzhi Pharmaceutical Holdings Ltd.

-10.11%

-0.39

59.20%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.26%

EBIT Growth (5y)

-11.90%

EBIT to Interest (avg)

24.50

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

1.63

Tax Ratio

34.56%

Dividend Payout Ratio

40.95%

Pledged Shares

Institutional Holding

ROCE (avg)

18.58%

ROE (avg)

12.09%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.57

EV to EBIT

7.63

EV to EBITDA

3.72

EV to Capital Employed

0.59

EV to Sales

0.34

PEG Ratio

Dividend Yield

642.31%

ROCE (Latest)

7.68%

ROE (Latest)

1.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-14What is not working for the Company

ROCE(HY)

Lowest at 1.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,402.8

RAW MATERIAL COST(Y)

Grown by 12.18% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.43 times

NET SALES(Q)

Lowest at HKD 945.77 MM

OPERATING PROFIT(Q)

Lowest at HKD 76.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.08 %

PRE-TAX PROFIT(Q)

Lowest at HKD 0.64 MM

NET PROFIT(Q)

Lowest at HKD 9.43 MM

EPS(Q)

Lowest at HKD 0.01

Here's what is not working for Zhongzhi Pharmaceutical Holdings Ltd.

Interest Coverage Ratio

Lowest at 2,402.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at HKD 945.77 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 76.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 8.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 0.64 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -99.43%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 9.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -89.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Debtors Turnover Ratio

Lowest at 4.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 12.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales