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

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HK:0570

China Traditional Chinese Medicine Holdings Co

(OTC:0570)

Rating:58Neutral
Price Target:
HK$2.50
▲(6.38%Upside)
The stock exhibits significant challenges, particularly in financial performance with declining profitability and negative cash flow. The mixed technical signals and high P/E ratio further contribute to the cautious outlook. Despite a solid dividend yield, the high valuation poses a risk, making it crucial for investors to consider these factors.

China Traditional Chinese Medicine Holdings Co (0570) vs. iShares MSCI Hong Kong ETF (EWH)

China Traditional Chinese Medicine Holdings Co Business Overview & Revenue Model

Company DescriptionChina 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 MoneyChina 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
The company has a strong gross profit margin and a healthy balance sheet with low leverage. However, the significant decline in net profit margin, inconsistent revenue growth, and negative cash flow highlight risks in profitability and cash sustainability.
Income Statement
65
Positive
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
70
Positive
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
50
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue16.51B18.12B14.30B19.05B14.81B
Gross Profit7.86B9.27B7.20B11.83B9.13B
EBITDA1.82B2.56B2.16B3.59B3.16B
Net Income54.07M1.29B764.49M1.93B1.66B
Balance Sheet
Total Assets35.06B37.07B35.62B36.39B33.09B
Cash, Cash Equivalents and Short-Term Investments5.34B3.69B3.67B4.14B5.03B
Total Debt4.02B5.16B5.04B5.06B5.22B
Total Liabilities11.13B13.13B12.67B13.73B12.19B
Stockholders Equity21.20B21.16B20.17B19.72B18.06B
Cash Flow
Free Cash Flow2.07B680.20M565.09M-81.17M-1.02B
Operating Cash Flow2.58B1.17B1.09B796.03M228.47M
Investing Cash Flow-379.24M-477.62M-374.15M-536.94M-1.07B
Financing Cash Flow-1.39B-584.31M-557.28M-724.32M-1.01B

China Traditional Chinese Medicine Holdings Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.35
Price Trends
50DMA
2.18
Positive
100DMA
2.06
Positive
200DMA
2.22
Positive
Market Momentum
MACD
0.05
Negative
RSI
65.62
Neutral
STOCH
71.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0570, the sentiment is Positive. The current price of 2.35 is above the 20-day moving average (MA) of 2.25, above the 50-day MA of 2.18, and above the 200-day MA of 2.22, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 71.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0570.

China Traditional Chinese Medicine Holdings Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
CHF27.76B14.929.37%1.98%28.68%7.54%
58
Neutral
$11.83B202.590.25%0.43%-10.72%-95.88%
$1.59B-4.93%2.69%
€1.16B8.5723.28%5.83%
74
Outperform
HK$6.24B6.8111.61%0.84%-18.09%-15.08%
70
Outperform
HK$11.19B11.838.89%0.57%4.91%-11.80%
65
Neutral
HK$14.96B28.615.88%-42.02%-76.29%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0570
China Traditional Chinese Medicine Holdings Co
2.35
-0.87
-27.04%
SHPHF
Sihuan Pharmaceutical Holdings Group
0.10
0.04
66.67%
DE:C1P
Consun Pharmaceutical Group Ltd.
1.22
0.85
229.73%
HK:1558
YiChang HEC ChangJiang Pharmaceutical Co. Ltd. Class H
17.00
7.83
85.39%
HK:2877
China Shineway Pharmaceutical Group Limited
8.40
0.94
12.60%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
8.40
3.46
70.04%

China Traditional Chinese Medicine Holdings Co Corporate Events

China Traditional Chinese Medicine Holdings Appoints New Executive Director
Jul 25, 2025

China Traditional Chinese Medicine Holdings Co. Limited has appointed Mr. Peng Li as an executive director and a member of the strategic committee, effective July 25, 2025. Mr. Peng brings extensive experience in traditional Chinese medicine and leadership roles within the healthcare sector, which is expected to bolster the company’s strategic direction and operational expertise.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Announces Board Composition
Jul 25, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced the composition of its board of directors, detailing the roles and functions of each member. This organizational update provides insights into the company’s governance structure, which may influence its strategic decisions and operational effectiveness, potentially impacting stakeholders’ interests and the company’s positioning in the traditional medicine industry.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Issues Profit Warning Amid Market Challenges
Jul 25, 2025

China Traditional Chinese Medicine Holdings Co. Limited has issued a profit warning, indicating an expected decline in net profit by 165% to 175% for the first half of 2025 compared to the previous year. The decline is attributed to reduced revenue and profitability in its concentrated TCM granules business due to increased centralized procurement and market competition, as well as a provision for goodwill impairment. This impairment is non-cash and aims to position the company for future improvements, with the expectation that profit would decrease by 50% to 60% without the impairment effect.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Co. Appoints New Auditor
Jul 18, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced that the resolution to appoint BDO as the auditor of the company was passed at the Extraordinary General Meeting held on 18 July 2025. The resolution received unanimous support from shareholders, indicating strong backing for the company’s governance decisions and potentially reinforcing investor confidence.

The most recent analyst rating on (HK:0570) stock is a Hold with a HK$4.60 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Announces EGM for Auditor Appointment
Jun 27, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced an extraordinary general meeting scheduled for July 18, 2025, to appoint BDO as the company’s auditor and authorize the board to fix the auditor’s remuneration. This meeting is significant for stakeholders as it involves key decisions regarding the company’s financial oversight, potentially impacting its governance and operational transparency.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Co. Announces Successful AGM Resolutions
Jun 27, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced that all resolutions proposed at its Annual General Meeting on June 27, 2025, were approved by shareholders. This includes the approval of financial statements, the declaration of dividends, and the re-election of directors, reflecting strong shareholder support and stable governance, which may positively impact the company’s market position and stakeholder confidence.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine’s Yushuda Tablets Gain NMPA Acceptance
Jun 25, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced that the National Medical Products Administration of China has accepted the new drug application for Yushuda Tablets, an innovative traditional Chinese medicine developed by its subsidiary, Sinopharm Group Tongjitang Pharmaceutical. Yushuda Tablets have shown significant efficacy in treating mild-to-moderate depression, particularly symptoms related to qi stagnation. The acceptance marks a critical step in the regulatory process, although the timeline for approval remains uncertain, and the company advises caution to shareholders and investors.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Co. Announces Board Committee Adjustments
Jun 20, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced adjustments to its board committees, effective June 20, 2025. These changes involve the re-designation of non-executive directors Ms. Xu Jinghui, Mr. Zu Jing, and Mr. Liu Haijian to different board committees, aiming to enhance the company’s governance structure and compliance with Hong Kong Stock Exchange listing rules. The adjustments are intended to strengthen board effectiveness and diversity, thereby improving corporate governance practices.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Announces Board Composition
Jun 20, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement also details the membership of various board committees, indicating a structured governance approach that may enhance decision-making and strategic planning within the company.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Enhances Governance with New Nomination Committee
Jun 20, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced the formation of a Nomination Committee to enhance its corporate governance. The committee, comprising both executive and non-executive directors, is tasked with reviewing the board’s structure and composition to align with the company’s strategic goals. This move is expected to strengthen the company’s governance framework and ensure a diverse and skilled board, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Co. Proposes New Auditor Appointment
Jun 20, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced the proposed appointment of BDO Limited as its new auditor, replacing Ernst & Young, which will retire at the conclusion of the upcoming AGM. The decision, recommended by the company’s audit committee, considers BDO’s market reputation, technical competence, and independence, and is deemed beneficial for the company’s stakeholders.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Clarifies Dividend Entitlement Dates
Jun 4, 2025

China Traditional Chinese Medicine Holdings Co. Limited issued a clarification announcement regarding an inadvertent clerical error in its annual general meeting circular and notice. The error pertained to the closure period of the register of members for dividend entitlement. The corrected period is from 7 July 2025 to 9 July 2025, during which no share transfers will be registered. This announcement ensures shareholders are accurately informed about the dividend payment process, maintaining transparency and trust.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Announces AGM and Dividend Proposal
Jun 4, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced its upcoming Annual General Meeting (AGM) scheduled for June 27, 2025, where shareholders will consider the company’s audited financial statements and reports for the year ending December 31, 2024. The board has proposed a final dividend of HK0.35 cent per share and a special dividend of HK8.30 cents per share. Additionally, the meeting will involve the re-election of several directors and the authorization of the board to set directors’ remuneration. This announcement reflects the company’s commitment to rewarding shareholders and maintaining strong governance practices.

The most recent analyst rating on (HK:0570) stock is a Hold with a HK$2.60 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Co. Announces Auditor Change
May 29, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced the retirement of Ernst & Young as its auditor due to regulatory requirements limiting the tenure of auditing firms for state-owned enterprises. The company assured stakeholders that this change will not impact its financial reporting for the year ending December 2025 and is actively seeking a new auditor.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Co. Announces AGM and Dividend Schedule Changes
May 27, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced the postponement of its Annual General Meeting (AGM) from June 18, 2025, to June 27, 2025, to allow more preparation time. Consequently, the book closure periods and record dates for shareholders’ entitlements to attend the AGM and receive dividends have been adjusted. The payment date for the final and special dividends for the year ended December 31, 2024, has also been rescheduled to July 18, 2025, pending shareholder approval. These changes may impact stakeholders’ planning and financial expectations.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Announces Final Dividend for 2024
May 27, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced a final cash dividend of HKD 0.0035 per share for the financial year ending December 31, 2024. The dividend is set to be approved by shareholders on June 27, 2025, with payment scheduled for July 18, 2025. This announcement reflects the company’s ongoing financial health and commitment to providing returns to its shareholders, which may positively influence investor confidence and market perception.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Holdings Announces Special Dividend for 2024
May 27, 2025

China Traditional Chinese Medicine Holdings Co. Limited has announced a special cash dividend of HKD 0.083 per share for the financial year ending December 31, 2024. This announcement, updated on May 27, 2025, includes details on the dividend’s approval date, ex-dividend date, and payment date, reflecting the company’s commitment to returning value to its shareholders.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

China Traditional Chinese Medicine Announces Leadership Changes
May 14, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced key leadership changes, including the retirement of Mr. LAN Qingshan and the resignation of Mr. ZHAO Dongji and Mr. HUANG Zhangxin from their vice president roles due to work arrangement changes. Mr. ZHAO also stepped down as joint company secretary, with Ms. NG Sau Mei assuming the sole company secretary role. Mr. ZHENG Jun has been appointed as a new vice president, bringing extensive experience from Sino Pharmengin Corporation. Additionally, Mr. LI Hongjian has been appointed as the new authorised representative, reflecting the company’s strategic leadership restructuring.

The most recent analyst rating on (HK:0570) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on China Traditional Chinese Medicine Holdings Co stock, see the HK:0570 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025