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

• Market Cap: HK$354.41M
• Dividend Yield: 9.52%
• Average Volume (3M): 419.60K
• Price to Earnings (P/E): 50.0
• Beta (1Y): 0.36
• Revenue Growth: -4.92%
• EPS Growth: N/A
• Country: HK
• Employees: 817
• Sector: Healthcare
• Sector Strength: 48
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 1,125,102,900
• 10 Day Avg. Volume: 436,009
• 30 Day Avg. Volume: 419,597
• PEG Ratio: -0.38
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 5.39
• 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: HK$0.50
• Price Target Upside: 56.25% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$0.50 ▲(56.25% Upside)

The overall stock score reflects mixed financial performance and valuation concerns. While the company benefits from stable gross profit margins and a high dividend yield, it faces challenges with profitability, cash flow management, and valuation metrics. Technical indicators suggest a neutral market sentiment, contributing to the moderate score.

Wai Yuen Tong Medicine Holdings Limited Business Overview & Revenue Model

Company Description

Wai Yuen Tong Medicine Holdings Limited (0897) is a Hong Kong-based company primarily engaged in the traditional Chinese medicine (TCM) sector. Founded in 1897, the company operates through various segments, including the production, retail, and wholesale of Chinese herbal medicines and health products. Its core products encompass traditional Chinese medicinal formulations, health supplements, and herbal teas, which cater to both domestic and international markets. The company also emphasizes the preservation and promotion of traditional Chinese medicine practices.

How the Company Makes Money

Wai Yuen Tong generates revenue through multiple key streams, primarily from the sale of its traditional Chinese medicine products, including proprietary herbal formulations and dietary supplements. The company operates a wide network of retail outlets in Hong Kong and mainland China, which serve as direct sales channels. Additionally, it engages in wholesale distribution to various retailers and health product outlets. Significant partnerships with local herbal suppliers and distributors further enhance its market reach. Moreover, the growing trend towards natural and holistic health solutions contributes positively to its earnings, as consumer demand for TCM products continues to rise.

Wai Yuen Tong Medicine Holdings Limited Financial Statement Overview

Summary

The company exhibits a mixed financial performance. Strengths include stable gross profit margins and manageable leverage. However, challenges are evident in low net profit margins, inconsistent revenue growth, and weak cash flow management. Operational inefficiencies further impact financial stability.

Income Statement

The company shows a mixed performance in its income statement. The gross profit margin is stable, indicating efficient production, but the net profit margin is low, suggesting challenges in managing expenses. Revenue growth is volatile, with a significant increase in the latest period, but historical fluctuations raise concerns about sustainability. EBIT and EBITDA margins are weak, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is relatively low, indicating manageable leverage. However, return on equity is minimal, suggesting limited profitability from shareholder investments. The equity ratio is adequate, showing a reasonable proportion of assets financed by equity.

Cash Flow

Cash flow analysis reveals potential liquidity issues. Free cash flow growth is negative, indicating declining cash generation. The operating cash flow to net income ratio is low, suggesting challenges in converting income into cash. The free cash flow to net income ratio is moderate, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	451.92M	745.30M	783.88M	1.29B	1.39B	1.11B
Gross Profit	235.51M	376.45M	394.81M	609.54M	574.15M	448.26M
EBITDA	-16.11M	122.72M	138.31M	115.88M	154.62M	-107.44M
Net Income	4.80M	7.10M	-15.36M	-20.52M	-108.91M	-376.00M
Balance Sheet
Total Assets	1.77B	1.74B	2.10B	7.01B	7.60B	7.96B
Cash, Cash Equivalents and Short-Term Investments	113.50M	146.55M	196.78M	625.01M	683.74M	688.93M
Total Debt	400.77M	435.41M	560.07M	1.76B	1.80B	1.77B
Total Liabilities	575.57M	555.68M	709.65M	3.33B	3.64B	4.01B
Stockholders Equity	1.20B	1.18B	1.39B	2.35B	2.52B	2.57B
Cash Flow
Free Cash Flow	101.63M	75.16M	157.04M	58.13M	90.14M	298.99M
Operating Cash Flow	106.12M	102.32M	191.69M	91.58M	116.18M	358.49M
Investing Cash Flow	-2.27M	280.89M	-84.62M	15.06M	-15.91M	-81.78M
Financing Cash Flow	-496.97M	-405.69M	-469.97M	-67.25M	-115.27M	-266.48M

Wai Yuen Tong Medicine Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0897, the sentiment is Positive. The current price of 0.32 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.32, and above the 200-day MA of 0.31, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 32.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
3737	70 Outperform	HK$711.48M	6.88	8.81%	6.17%	5.79%	-43.49%
0239	67 Neutral	HK$744.82M	9.47	9.75%	8.46%	-24.96%	-26.43%
0858	61 Neutral	HK$298.75M	1.35	23.02%	―	-6.21%	―
Sector *	60 Neutral	HK$19.22B	4.48	-1.43%	3.30%	11.19%	-15.58%
0897	48 Neutral	HK$354.41M	50.00	0.55%	9.52%	-4.92%	―
1498	45 Neutral	HK$179.70M	―	-26.80%	―	-6.09%	66.59%

Wai Yuen Tong Medicine Holdings Limited Corporate Events

Wai Yuen Tong Medicine Holdings Announces 2025 AGM Details

Wai Yuen Tong Medicine Holdings Limited has announced its upcoming annual general meeting to be held on August 19, 2025. The meeting will cover the adoption of financial statements, re-election of directors, and the re-appointment of Ernst & Young as auditors. Additionally, the company seeks approval for directors to exercise powers related to share allotment and issuance.

Wai Yuen Tong Reports Improved Profitability Despite Revenue Decline

Wai Yuen Tong Medicine Holdings Limited announced its final results for the year ended 31 March 2025, reporting a decrease in revenue by 4.9% to HK$745.3 million from continuing operations. Despite the revenue decline, the company saw a significant improvement in profitability, with profit for the year increasing by 77.5% to HK$7.1 million, and earnings per share rising by 148.5%. The company’s net assets value and cash equivalents saw a decline, but the gearing ratio improved slightly. These results indicate a positive shift in the company’s financial performance, potentially enhancing its market position and offering a more favorable outlook for stakeholders.

Wai Yuen Tong Strengthens Governance with Audit Committee Framework

Wai Yuen Tong Medicine Holdings Limited has outlined the terms of reference for its Audit Committee, emphasizing the importance of independent oversight in financial reporting and internal controls. The committee, composed primarily of independent non-executive directors, is tasked with ensuring effective risk management and addressing any significant irregularities, thereby strengthening the company’s governance framework.

Wai Yuen Tong Medicine Holdings Announces Financial Turnaround with Positive Profit Alert

Wai Yuen Tong Medicine Holdings Limited has announced a positive profit alert, indicating a financial turnaround from a loss of approximately HK$15.4 million in the previous year to a projected profit of up to HK$15.0 million for the financial year ending March 31, 2025. This improvement is attributed to reductions in impairment loss on property, plant, and equipment, fair value loss of investment properties, and finance costs, despite an increase in marketing expenses. The final results are pending confirmation by independent auditors, and stakeholders are advised to exercise caution when dealing with the company’s shares.

Wai Yuen Tong Announces Board Meeting to Discuss Year-End Results and Dividend

Wai Yuen Tong Medicine Holdings Limited has announced a board meeting scheduled for June 30, 2025, to discuss and approve the company’s final results for the fiscal year ending March 31, 2025, and to consider the payment of a final dividend. This meeting could have implications for the company’s financial strategy and shareholder returns, potentially impacting its market positioning and stakeholder interests.