China Traditional Chinese Medicine Holdings Co (0570) AI Stock Analysis

• Market Cap: $10.98B
• Dividend Yield: N/A
• Average Volume (3M): 23.23M
• Price to Earnings (P/E): 189.7
• Beta (1Y): 0.56
• Revenue Growth: -10.72%
• EPS Growth: -95.88%
• Country: HK
• Employees: 16,753
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.01
• Shares Outstanding: 5,035,802,000
• 10 Day Avg. Volume: 30,967,200
• 30 Day Avg. Volume: 23,230,929
• PEG Ratio: -0.34
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 27.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.71
• Price Target Upside: -22.43% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: ―

The overall stock score of 56 reflects a mix of robust financial health and operational challenges. While the company has a strong balance sheet, the declining profitability and negative cash flow are concerning. Technical indicators present mixed signals, and the high P/E ratio suggests overvaluation. Investors should consider the potential risks associated with the current financial and valuation metrics.

China Traditional Chinese Medicine Holdings Co Business Overview & Revenue Model

Company Description

China Traditional Chinese Medicine Holdings Co. Limited, an investment holding company, engages in the research and development, production, and sale of Chinese medicine and pharmaceutical products in the People's Republic of China. The company offers granules, finished drugs, decoction pieces, and healthcare products. It is also involved in the plantation and management of Chinese medicinal herbs; manufacturing of traditional Chinese medicines (TCM); trading of pharmaceutical products; provision of TCM marketing, advertising, and consulting services; and retail of pharmaceuticals and decoction products. The company also provides property leasing services. It sells its products to hospitals and retail pharmacies. The company was formerly known as China Traditional Chinese Medicine Co. Limited and changed its name to China Traditional Chinese Medicine Holdings Co. Limited in July 2016. China Traditional China Traditional Chinese Medicine Holdings Co. Limited was founded in 1573 and is headquartered in Wan Chai, Hong Kong.

How the Company Makes Money

China Traditional Chinese Medicine Holdings Co generates revenue primarily through the sale of its diverse portfolio of traditional Chinese medicine products. The company's key revenue streams include the production and distribution of decoction pieces, which are processed raw herbs used in TCM, and granules that offer a more convenient form of these traditional remedies. In addition to these core products, the company also manufactures finished drugs that adhere to the principles of TCM. Significant partnerships with hospitals, pharmacies, and healthcare providers enhance the company's distribution network, allowing it to reach a broad customer base across various regions. The company's earnings are further supported by its investments in research and development, which help in maintaining a competitive edge and ensuring a steady pipeline of innovative products.

China Traditional Chinese Medicine Holdings Co Financial Statement Overview

Summary

China Traditional Chinese Medicine Holdings Co exhibits both strengths and challenges. While the company maintains a solid gross margin and a strong balance sheet with low leverage, declining profitability and cash flow issues pose risks. Revenue fluctuations and decreased profitability margins indicate operational challenges. Investors should be cautious of the declining net income and cash flow sustainability.

Income Statement

The company has demonstrated strong gross profit margins, averaging around 50% over the years, which is commendable in maintaining a healthy cost structure. However, the net profit margin has severely declined from 7.09% in 2023 to 0.33% in 2024, indicating significant pressure on profitability. Revenue growth has been inconsistent, with a notable decline in 2024. EBIT and EBITDA margins have also decreased, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a healthy equity base, reflected by an equity ratio of over 60% consistently. The debt-to-equity ratio has remained low, indicating conservative leverage. However, the return on equity has decreased significantly due to lower net income, which could be a concern for investors seeking returns.

Cash Flow

Cash flow management is a concern, with free cash flow turning negative in recent years, except for 2023. Operating cash flow is weak, particularly in 2024, with zero reported, which raises sustainability issues. The free cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting earnings into cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
16.51B	18.12B	14.30B	19.05B	14.81B
	Gross Profit
7.86B	9.27B	7.20B	11.83B	9.13B
	EBIT
335.59M	1.43B	1.06B	2.75B	2.49B
	EBITDA
1.82B	2.56B	2.16B	3.59B	3.16B
	Net Income Common Stockholders
54.07M	1.29B	764.49M	1.93B	1.66B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.34B	3.69B	3.67B	4.14B	5.03B
	Total Assets
35.06B	37.07B	35.62B	36.39B	33.09B
	Total Debt
4.02B	5.16B	5.04B	5.06B	5.22B
	Net Debt
148.73M	2.14B	1.98B	2.17B	1.78B
	Total Liabilities
11.13B	13.13B	12.67B	13.73B	12.19B
	Stockholders Equity
21.20B	21.16B	20.17B	19.72B	18.06B
Cash Flow		Free Cash Flow
0.00	680.20M	565.09M	-81.17M	-1.02B
	Operating Cash Flow
0.00	1.17B	1.09B	796.03M	228.47M
	Investing Cash Flow
0.00	-477.62M	-374.15M	-536.94M	-1.07B
	Financing Cash Flow
0.00	-584.31M	-557.28M	-724.32M	-1.01B

China Traditional Chinese Medicine Holdings Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0570, the sentiment is Negative. The current price of 2.2 is below the 20-day moving average (MA) of 2.25, above the 50-day MA of 2.13, and below the 200-day MA of 2.53, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 21.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0570.

China Traditional Chinese Medicine Holdings Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0570	56 Neutral	$10.98B	189.66	0.25%	―	-10.72%	-95.88%
Sector *	53 Neutral	$5.22B	3.33	-44.36%	7.55%	16.78%	-0.12%
SHPHF		$1.33B	―	-4.93%	2.69%	―	―
C1P		€1.02B	7.37	23.28%	6.76%	―	―
2877	76 Outperform	HK$5.72B	6.28	11.61%	10.17%	-18.09%	-15.08%
0719	70 Outperform	HK$9.05B	9.03	8.89%	4.38%	4.91%	-11.80%
1558	66 Neutral	HK$12.32B	23.57	5.88%	―	-42.02%	-76.29%

China Traditional Chinese Medicine Holdings Co Corporate Events

China Traditional Chinese Medicine Holdings Sees Increased Investment from Major Shareholder

China Traditional Chinese Medicine Holdings Co. Limited announced that its controlling shareholder, China National Pharmaceutical Group Corporation, has increased its shareholding by acquiring 50,350,000 shares from the open market. This move, driven by confidence in the company’s stable development, raises CNPGC’s ownership to approximately 33.46% of the total issued shares, potentially strengthening its influence and signaling positive growth prospects for stakeholders.

China Traditional Chinese Medicine Holdings Reports 2024 Financial Decline Amid Industry Challenges

China Traditional Chinese Medicine Holdings Co. Limited reported a significant decline in its financial performance for the year ended December 31, 2024, with revenue decreasing by 8.9% and net profit plummeting by 98.5% compared to the previous year. Despite these challenges, the company maintained its market share and continued to advance its corporate transformation and technological innovation efforts, driven by supportive national policies and a focus on digital transformation. The company remains optimistic about overcoming short-term performance fluctuations and is committed to its long-term growth strategy.

China Traditional Chinese Medicine Holdings Announces Final Dividend for 2024

China Traditional Chinese Medicine Holdings Co. Limited has announced a final ordinary cash dividend of HKD 0.035 per share for the financial year ending December 31, 2024. The dividend reflects the company’s stable financial performance and commitment to returning value to shareholders, with the payment date set for July 9, 2025.

China Traditional Chinese Medicine Holdings Announces Special Dividend

China Traditional Chinese Medicine Holdings Co. Limited announced a special dividend of HKD 0.83 per share for the financial year ending December 31, 2024. This announcement reflects the company’s strong financial performance and commitment to returning value to its shareholders. The dividend will be paid on July 9, 2025, following shareholder approval in June. This move is likely to enhance investor confidence and solidify the company’s position in the traditional Chinese medicine market.

China Traditional Chinese Medicine Holdings Revises Final Dividend for 2024

China Traditional Chinese Medicine Holdings Co. Limited announced a revised final cash dividend of HKD 0.0035 per share for the year ended December 31, 2024. This update reflects a change in the previously declared dividend amount. The dividend will be paid on July 9, 2025, following shareholder approval on June 18, 2025. The announcement highlights the company’s commitment to returning value to shareholders, which may influence investor sentiment positively.

China Traditional Chinese Medicine Announces Revised Special Dividend

China Traditional Chinese Medicine Holdings Co. Limited has announced a revised special dividend of HKD 0.083 per share for the financial year ending December 31, 2024. This update reflects a change in the previously declared amount, with the dividend payment scheduled for July 9, 2025, following shareholder approval on June 18, 2025. The announcement underscores the company’s commitment to providing value to its shareholders and may enhance investor confidence in its financial health.

China Traditional Chinese Medicine Holdings Schedules Board Meeting for Year-End Results

China Traditional Chinese Medicine Holdings Co. Limited has announced a board meeting scheduled for March 25, 2025, to discuss and approve the company’s final results for the year ending December 31, 2024. The meeting will also consider the declaration of a final dividend, which could impact shareholder returns and reflect the company’s financial health.