China Traditional Chinese Medicine Holdings Co Ltd (HK:0570)
:0570
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China Traditional Chinese Medicine Holdings Co
(0570)
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Rating:54Neutral
Price Target:
HK$2.00
▼(-7.41% Downside)
Action:ReiteratedDate:09/25/25
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.
Positive Factors
High gross margins
Sustained ~50% gross margins provide a durable buffer vs. cost pressure and support reinvestment. High product-level margins allow the company to absorb rising input or distribution costs while preserving ability to fund marketing, product development and maintain profitable product lines over months.
Negative Factors
Sharp decline in net profit margin
A rapid fall in net margin signals erosion of profitability from higher operating costs, pricing pressure or one-off losses. Lower net margins reduce retained earnings and ROE, constraining the company's ability to fund growth initiatives or sustain dividends without structural cost or revenue fixes over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~50% gross margins provide a durable buffer vs. cost pressure and support reinvestment. High product-level margins allow the company to absorb rising input or distribution costs while preserving ability to fund marketing, product development and maintain profitable product lines over months.
Read all positive factors
China Traditional Chinese Medicine Holdings Co (0570) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$8.61B
Dividend Yield3.66%
Average Volume (3M)51.13M
Price to Earnings (P/E)―
Beta (1Y)0.31
Revenue Growth-10.68%
EPS Growth-737.07%
CountryHK
Employees16,753
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.05
Shares Outstanding5,035,802,000
10 Day Avg. Volume46,853,920
30 Day Avg. Volume51,130,115
Financial Highlights & Ratios
PEG Ratio-2.11
Price to Book (P/B)0.52
Price to Sales (P/S)0.66
P/FCF Ratio5.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.11
Revenue Forecast (FY)HK$14.02B
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 of...
How the Company Makes Money
China 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 m...
China Traditional Chinese Medicine Holdings Co Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
70
Positive
Cash Flow
50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.59B | 16.51B | 18.12B | 14.30B | 19.05B | 14.81B |
| Gross Profit | 7.43B | 7.86B | 9.27B | 7.20B | 11.83B | 9.13B |
| EBITDA | 1.64B | 1.82B | 2.56B | 2.16B | 3.59B | 3.16B |
| Net Income | -264.83M | 54.07M | 1.29B | 764.49M | 1.93B | 1.66B |
Balance Sheet | ||||||
| Total Assets | 34.53B | 35.06B | 37.07B | 35.62B | 36.39B | 33.09B |
| Cash, Cash Equivalents and Short-Term Investments | 5.27B | 5.34B | 3.69B | 3.46B | 4.14B | 5.03B |
| Total Debt | 3.60B | 4.02B | 5.16B | 5.04B | 5.06B | 5.22B |
| Total Liabilities | 11.13B | 11.13B | 13.13B | 12.67B | 13.73B | 12.19B |
| Stockholders Equity | 20.70B | 21.20B | 21.16B | 20.17B | 19.72B | 18.06B |
Cash Flow | ||||||
| Free Cash Flow | -343.51M | 2.07B | 680.20M | 565.09M | -81.17M | -1.02B |
| Operating Cash Flow | -569.70M | 2.58B | 1.17B | 1.09B | 796.03M | 228.47M |
| Investing Cash Flow | 165.25M | -379.24M | -477.62M | -374.15M | -536.94M | -1.07B |
| Financing Cash Flow | -47.07M | -1.39B | -584.31M | -557.28M | -724.32M | -1.01B |
China Traditional Chinese Medicine Holdings Co Technical Analysis
Negative
2.16
Price Trends
1.93
Negative
2.07
Negative
2.18
Negative
Market Momentum
-0.04
Negative
40.30
Neutral
40.74
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 2.16 is above the 20-day moving average (MA) of 1.82, above the 50-day MA of 1.93, and below the 200-day MA of 2.18, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 40.74 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | HK$22.50B | 22.15 | 7.26% | 3.13% | 5.48% | -49.67% | |
68 Neutral | HK$2.71B | 8.28 | 19.22% | 15.97% | -20.14% | -20.91% | |
58 Neutral | HK$9.43B | 30.68 | 5.62% | 4.47% | 3.34% | -39.43% | |
56 Neutral | HK$39.63B | 3.39 | 7.89% | 7.15% | 7.32% | 12.84% | |
54 Neutral | HK$8.61B | -28.37 | -1.64% | 3.66% | -10.68% | -737.07% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | HK$367.75M | 43.63 | -1.17% | 7.50% | 59.60% | -351.02% |
* Healthcare Sector Average
HK:0570
China Traditional Chinese Medicine Holdings Co
1.67
-0.26
-13.61%
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-0.03
-9.72%
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Grand Pharmaceutical Group Limited
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Golden Throat Holdings Group Co Ltd
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Shandong Xinhua Pharmaceutical Company Limited Class H
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16.69%
China Traditional Chinese Medicine Holdings Co Corporate Events
China TCM Wins Shareholder Approval for 2026–2028 Financial, Purchase and Supply Frameworks
Feb 2, 2026
China Traditional Chinese Medicine Holdings Co. Limited announced that all resolutions put to shareholders at its extraordinary general meeting on 2 February 2026 were duly passed by poll. Shareholders approved, confirmed and ratified the company&...
China TCM Warns of 2025 Loss on Weaker Granules Business and Higher Impairments
Jan 27, 2026
China Traditional Chinese Medicine Holdings has issued a profit warning, flagging that it expects to swing from a small net profit of about RMB20.77 million in 2024 to a net loss of between RMB350 million and RMB500 million for the year ended 31 D...
China TCM Calls EGM to Approve 2026–2028 Framework Deals With Sinopharm
Jan 14, 2026
China Traditional Chinese Medicine Holdings Co. Limited has convened an extraordinary general meeting for 2 February 2026 in Foshan to seek shareholder approval for a series of three-year framework agreements covering financial services, procureme...
China TCM Sets February EGM, Closes Register for Connected Transactions Vote
Jan 12, 2026
China Traditional Chinese Medicine Holdings Co. has scheduled an extraordinary general meeting (EGM) for 2 February 2026 to seek shareholder approval for the renewal of certain continuing connected transaction agreements and the transactions conte...
China TCM Delays Circular on Renewal of Connected Transactions to January 2026
Dec 19, 2025
China Traditional Chinese Medicine Holdings Co. Limited has announced a delay in sending to shareholders a circular relating to the renewal of certain continuing connected transactions. The circular, which will include details of the transaction a...
China Traditional Chinese Medicine Holdings Co. Announces Board Committee Changes
Nov 26, 2025
China Traditional Chinese Medicine Holdings Co. Limited announced a change in its board committee composition, with Mr. Liu Haijian being re-designated as a member of the Remuneration and Evaluation Committee, effective November 26, 2025. This str...
China Traditional Chinese Medicine Holdings Announces Board Composition
Nov 26, 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 update provides transparency in governance and may impact the company’s s...
China Traditional Chinese Medicine Holdings Renews Key Agreements for 2026-2028
Nov 25, 2025
China Traditional Chinese Medicine Holdings Co. Limited has announced the renewal of three key agreements with Sinopharm Group Finance and CNPGC for the period from 2026 to 2028. These agreements include the Financial Services Framework Agreement,...
China Traditional Chinese Medicine Holdings Renews Financial Services Agreement
Nov 19, 2025
China Traditional Chinese Medicine Holdings Co. Limited has entered into a New Financial Services (2025) Framework Agreement with Sinopharm Group Finance, effective from November 19, 2025, to December 31, 2025. This agreement, which includes depos...
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.