Shanghai stock alert

CHINA

CLOSING UPDATE: Jiangsu Hengrui Medicine drops 3.6% on high volume 17 August 2018 16:09 CST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Shanghai market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Jiangsu Hengrui Medicine, Shanghai's largest chemicals company by market capitalisation, traded on heavy volume of 2.0 times average today while the price dropped CNY2.43 (or 3.6%) to trade at CNY64.87. Compared with the SSE Composite Index which fell 36.9 points (or 1.4%) in the day, this represented a relative price change of -2.3%.

Technical indicators complementing today's significant downtrend:

+ The negative 1.36 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

+ The price tumbled 7.4% in the last week and plummeted 10.8% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Earnings of 85.6 [28.8]

+ Price to Book of 15.8 [3.7]

+ Dividend yield of 0.1% [1.4%]

Other Bearish Signals include:

+ Tobin's Q Ratio is 13.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom 1% of stocks by value of Q Ratio.

Note

Bullish Signals:

The stock has outperformed 96% of the Shanghai market over the past 6 months.

In the last three months the stock has hit a new 52-week high seven times, pointing to a significant uptrend.

The present value of CNY1,000 invested one year ago is CNY1,601 [vs CNY817 for the SSE Composite Index].

Total Liabilities/EBITDA of 0.7 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 23.8% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity is high at 20.9%. Also, this has improved from 20.9% last year.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Equity 20.9% [9.0%]

Return on Assets 18.3% [3.2%]

Return on Capital Employed 23.5% [9.3%]

TODAY'S ALERTS

Afternoon Alert: Jiangsu Hengrui Medicine sinks 5.2%, leads market lower

17 August 2018 13:00 CST

Jiangsu Hengrui Medicine Co., Ltd. (SS:600276) has sunk 5.2% to trade at CNY63.78 vs. the SSE Composite Index which weakened 11.4 points (or 0.4%) to 2,694.5. Representing a weighting of about 0.8% of the index, the stock accounted for 10.0% of today's loss. The shares have underperformed 96% of the market in the past week. Trading volume was 2.0 times average so far today.

Morning Alert: Jiangsu Hengrui Medicine drops 3.8%, leads Chemicals sector lower

17 August 2018 10:48 CST

Jiangsu Hengrui Medicine Co., Ltd. (SS:600276) has dropped 3.8% to trade at CNY64.76 vs. the Chemicals sector which weakened 80.3 points (or 0.7%) to 11,017.7. Representing a weighting of about 14.9% of the sector, the stock accounted for 77.9% of today's loss. The shares have underperformed 95% of the market in the past week. Trading volume was 2.0 times average so far today.

RECENT ALERTS

CLOSING UPDATE: Jiangsu Hengrui Medicine sinks 5.0%, led Chemicals sector lower

15 August 2018 16:02 CST

Jiangsu Hengrui Medicine, Shanghai's largest chemicals company by market capitalisation, has sunk 5.0% to trade at CNY67.58 vs. the Chemicals sector which weakened 211.8 points (or 1.9%) to 11,231.4. Representing a weighting of about 15.2% of the sector, the stock accounted for 40.9% of today's loss. Trading volume was 1.2 times average at the end of the day. Compared with the SSE Composite Index which fell 57.5 points (or 2.1%) in the day, this represented a relative price change of -2.9%.

Afternoon Alert: Jiangsu Hengrui Medicine drops 3.1%

15 August 2018 12:59 CST

Jiangsu Hengrui Medicine Co., Ltd. (SS:600276) traded on volume of 0.9 times average so far today while the price dropped CNY2.18 (or 3.1%) to trade at CNY68.94.

Jiangsu Hengrui Medicine Co., Ltd. (SS:600276; SHA:600276; CH:600276)

ISIN: CNE0000014W7

PermID: 4295864294

Source: www.BuySellSignals.com