Wai Yuen Tong Medicine Holdings Limited (0897) AI Stock Analysis

• Market Cap: HK$393.79M
• Dividend Yield: 8.57%
• Average Volume (3M): 540.29K
• Price to Earnings (P/E): 71.4
• Beta (1Y): 0.37
• Revenue Growth: -66.75%
• EPS Growth: -83.83%
• Country: HK
• Employees: 817
• Sector: Healthcare
• Sector Strength: 58
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.02
• Shares Outstanding: 1,125,102,900
• 10 Day Avg. Volume: 670,938
• 30 Day Avg. Volume: 540,291
• PEG Ratio: 0.26
• Price to Book (P/B): 0.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.53
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ―

Wai Yuen Tong Medicine Holdings Limited's stock score is primarily driven by its financial challenges, including declining revenues and profitability issues. Technical analysis suggests moderate stability, but the high P/E ratio raises concerns about overvaluation. The attractive dividend yield is a positive aspect, yet overall, the stock faces significant operational and valuation challenges.

Wai Yuen Tong Medicine Holdings Limited Business Overview & Revenue Model

Company Description

Wai Yuen Tong Medicine Holdings Limited, an investment holding company, manufactures, processes, and retails traditional Chinese medicines, Western pharmaceutical products, and health food and personal products in Hong Kong, Mainland China, Macau, and internationally. The company offers Chinese medicines and health food products under the Wai Yuen Tong brand name; and Western pharmaceutical and personal care products under the Madame Pearl's and Pearl's brands. It also engages in the investment, holding, and selling of properties; provision of financial services; and agricultural produce exchange market operation. As of March 31, 2022, the company operated 63 retail stores in Hong Kong. The company was founded in 1897 and is headquartered in Kowloon Bay, Hong Kong. Wai Yuen Tong Medicine Holdings Limited is a subsidiary of Rich Time Strategy Limited.

How the Company Makes Money

Wai Yuen Tong Medicine Holdings Limited generates revenue through the production and sale of its diverse portfolio of traditional Chinese medicine and health products. The company's primary revenue streams include the sale of its proprietary Chinese medicine formulas and health supplements through its extensive retail network, which includes company-operated stores, franchise outlets, and a robust e-commerce platform. Additionally, Wai Yuen Tong collaborates with various partners for distribution, expanding its market reach across different regions. The company's earnings are further supported by its investments in research and development, which ensure the continued innovation and quality of its product offerings.

Wai Yuen Tong Medicine Holdings Limited Financial Statement Overview

Summary

Wai Yuen Tong Medicine Holdings Limited faces several financial challenges. The income statement reflects declining revenues and persistent losses, while the balance sheet remains relatively stable with an adequate equity cushion. Cash flow generation is positive, but the company needs to address profitability concerns to improve its financial health.

Income Statement

Wai Yuen Tong Medicine Holdings Limited's income statement indicates challenges in revenue generation and profitability. The company experienced a significant decline in revenue from 2023 to 2024, with a decrease in gross profit and negative net income, highlighting operational inefficiencies. The EBIT and EBITDA margins have improved slightly, but overall profitability remains weak.

Balance Sheet

The balance sheet shows a relatively stable financial position with a high equity ratio. Despite a decrease in total assets and stockholders' equity over the years, the company maintains a manageable debt-to-equity ratio. However, the decline in stockholders' equity suggests potential challenges in long-term financial stability.

Cash Flow

The cash flow statement reveals positive operating cash flow, suggesting decent cash generation capability. However, free cash flow growth has slowed, and there are high financing outflows, which could impact liquidity. The free cash flow to net income ratio is positive, indicating some efficiency in cash conversion.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
451.92M	783.88M	1.29B	1.39B	1.11B	620.74M
	Gross Profit
235.51M	394.81M	609.54M	574.15M	448.26M	282.24M
	EBIT
-38.36M	40.88M	51.55M	56.16M	-23.32M	-134.44M
	EBITDA
-16.11M	138.31M	115.88M	154.62M	-107.44M	605.44M
	Net Income Common Stockholders
4.80M	-15.36M	-20.52M	-108.91M	-376.00M	438.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
108.90M	196.78M	625.01M	683.74M	688.93M	599.18M
	Total Assets
1.77B	2.10B	7.01B	7.60B	7.96B	7.73B
	Total Debt
400.77M	560.07M	1.76B	1.80B	1.77B	1.94B
	Net Debt
304.50M	405.10M	1.19B	1.26B	1.24B	1.46B
	Total Liabilities
575.57M	709.65M	3.33B	3.64B	4.01B	3.74B
	Stockholders Equity
1.20B	1.39B	2.35B	2.52B	2.57B	2.64B
Cash Flow		Free Cash Flow
101.63M	157.04M	58.13M	90.14M	298.99M	2.37M
	Operating Cash Flow
106.12M	191.69M	91.58M	116.18M	358.49M	9.18M
	Investing Cash Flow
20.65M	-84.62M	15.06M	-15.91M	-81.78M	337.66M
	Financing Cash Flow
-509.20M	-469.97M	-67.25M	-115.27M	-266.48M	-36.50M

Wai Yuen Tong Medicine Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.35
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0897, the sentiment is Neutral. The current price of 0.35 is below the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.35, and above the 200-day MA of 0.28, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 86.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0897.

Wai Yuen Tong Medicine Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0239	71 Outperform	HK$779.10M	9.91	10.50%	15.20%	-8.64%	-25.13%
3737	70 Outperform	HK$711.48M	6.88	8.81%	6.47%	5.79%	-43.49%
0897	55 Neutral	HK$393.79M	71.43	-0.38%	8.57%	-66.75%	-83.83%
Sector *	54 Neutral	$5.37B	3.26	-45.10%	3.30%	16.81%	0.02%
0858	50 Neutral	HK$121.89M	0.69	20.14%	―	-12.93%	―
0455		HK$301.01M	―	-11.18%	3.71%	―	―
1498	46 Neutral	HK$189.57M	―	-26.80%	―	-6.09%	66.59%