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 Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 322.44 MM
ROCE(HY) Lowest at 1.56%
RAW MATERIAL COST(Y) Grown by 9.79% (YoY)

With ROE of 1.88%, it has a Very Attractive valuation with a 0.59 Price to Book Value

Over the past year, while the stock has generated a return of -13.33%, its profits have fallen by -81.6%
At the current price, the company has a high dividend yield of 618.5

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.33% 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.

-13.33%

-0.41

61.57%

Hang Seng Hong Kong

8.76%

0.45

19.63%

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)

1.60

Tax Ratio

34.56%

Dividend Payout Ratio

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

0.59

EV to EBIT

7.90

EV to EBITDA

3.87

EV to Capital Employed

0.61

EV to Sales

0.35

PEG Ratio

Dividend Yield

618.52%

ROCE (Latest)

7.68%

ROE (Latest)

1.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly Bullish

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 3.8 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 322.44 MM

ROCE(HY)

Lowest at 1.56%

RAW MATERIAL COST(Y)

Grown by 9.79% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.63 times

NET SALES(Q)

Lowest at HKD 938.22 MM

PRE-TAX PROFIT(Q)

Fallen at -65.55%

NET PROFIT(Q)

Lowest at HKD 7.15 MM

EPS(Q)

Lowest at HKD 0.01

Here's what is working for Zhongzhi Pharmaceutical Holdings Ltd.

Debt-Equity Ratio

Lowest at 3.8 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at HKD 61.19 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 61.19 MM has Grown at 22.28%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

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

Operating Cash Flow

Lowest at HKD 322.44 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Lowest at HKD 938.22 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Pre-Tax Profit

Fallen at -65.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 7.15 MM

in the last five periods

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 3.63 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 9.79% (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