tiprankstipranks
Trending News
More News >
China Traditional Chinese Medicine Holdings Co Ltd (HK:0570)
:0570
Advertisement

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

Compare
1 Followers

Top Page

HK:0570

China Traditional Chinese Medicine Holdings Co

(OTC:0570)

Select Model
Select Model
Select Model
Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
HK$2.00
▼(-16.67% Downside)
The overall stock score is primarily influenced by financial performance and technical analysis. The company's strong gross margin and solid balance sheet are overshadowed by declining profitability and cash flow issues. Technical indicators suggest mixed signals, with overbought conditions and some bullish momentum. Valuation concerns are highlighted by a negative P/E ratio, although the dividend yield offers some investor appeal.

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 through multiple streams. The primary source of income is the manufacturing and sale of traditional Chinese medicine products, which include both over-the-counter and prescription medicines. The company capitalizes on the growing demand for TCM by offering a wide array of products that address various health conditions and promote overall wellness. Additionally, CTCM benefits from strategic partnerships and collaborations with healthcare providers and institutions, enhancing its distribution network and market reach. A significant portion of its earnings also comes from exporting TCM products to international markets, leveraging the increasing global acceptance of traditional Chinese medicine. The company invests in research and development to innovate and expand its product portfolio, which in turn supports its financial growth.

China Traditional Chinese Medicine Holdings Co Financial Statement Overview

Summary
The company shows strong gross profit margins and a solid balance sheet with low leverage. However, declining net profit margins, inconsistent revenue growth, and negative cash flow raise concerns about profitability and 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 Price2.40
Price Trends
50DMA
2.24
Positive
100DMA
2.20
Positive
200DMA
2.09
Positive
Market Momentum
MACD
0.04
Negative
RSI
63.24
Neutral
STOCH
62.60
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 2.4 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.24, and above the 200-day MA of 2.09, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 63.24 is Neutral, neither overbought nor oversold. The STOCH value of 62.60 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 (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$13.31B12.3722.22%3.94%19.05%13.68%
73
Outperform
HK$6.16B6.9011.25%6.20%-20.64%-25.39%
70
Outperform
HK$9.90B10.634.20%2.32%-14.41%
55
Neutral
HK$13.72B-154.74-4.96%0.74%19.21%-115.91%
54
Neutral
$11.99B197.41-1.26%3.29%-9.58%-128.83%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0570
China Traditional Chinese Medicine Holdings Co
2.40
-1.81
-43.02%
HK:0460
Sihuan Pharmaceutical Holdings Group
1.52
0.88
135.66%
HK:1681
Consun Pharmaceutical Group Ltd.
16.05
9.27
136.83%
HK:2877
China Shineway Pharmaceutical Group Limited
8.29
-0.41
-4.71%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
7.16
1.38
23.88%

China Traditional Chinese Medicine Holdings Co Corporate Events

China TCM Holdings Announces Alcohol Extraction Workshop Project
Sep 1, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced that its subsidiary, Tongjitang Pharmaceutical, has entered into agreements for the construction of an alcohol extraction workshop. The project involves purification engineering and wastewater pretreatment, with services provided by Pharmengin and Wuhan Hongli. These agreements are considered connected transactions under the Hong Kong Stock Exchange Listing Rules, as Pharmengin is a subsidiary of CNPGC, a major shareholder of the company. The transactions are exempt from independent shareholder approval but require announcement and reporting due to their size.

The most recent analyst rating on (HK:0570) stock is a Hold with a HK$2.50 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 Reports Revenue Decline in H1 2025
Aug 29, 2025

China Traditional Chinese Medicine Holdings Co. Limited reported a decline in revenue and profit for the first half of 2025, with total revenue dropping by 11% and a net loss of RMB 141.76 million compared to a profit in the previous year. The decrease in revenue was observed across most product lines, with the most significant drop in the Chinese medicinal herbs integration business. This downturn reflects challenges in the TCM market and may impact the company’s strategic positioning and stakeholder relations.

The most recent analyst rating on (HK:0570) stock is a Hold with a HK$2.50 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 Meeting for Interim Results
Aug 19, 2025

China Traditional Chinese Medicine Holdings Co. Limited announced that its board of directors will meet on August 29, 2025, to consider and approve the interim results for the first half of 2025. This meeting could have implications for the company’s financial performance and market positioning, potentially affecting stakeholders’ perspectives.

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 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.

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: Sep 25, 2025