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

• Market Cap: HK$365.66M
• Dividend Yield: 9.68%
• Average Volume (3M): 541.57K
• Price to Earnings (P/E): 51.6
• Beta (1Y): 0.38
• Revenue Growth: -66.75%
• EPS Growth: -83.83%
• Country: HK
• Employees: 817
• Sector: Healthcare
• Sector Strength: 38
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.01
• Shares Outstanding: 1,125,102,900
• 10 Day Avg. Volume: 663,376
• 30 Day Avg. Volume: 541,569
• PEG Ratio: 0.52
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.38
• 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 (0897) is a Hong Kong-based company primarily engaged in the manufacturing and sale of traditional Chinese medicine and health products. The company operates through two main segments: Chinese Pharmaceutical and Health Food Products, and Western Pharmaceutical and Health Food Products. With a rich heritage dating back to 1897, Wai Yuen Tong has established itself as a reputable brand, offering a wide range of herbal products, including Chinese medicine formulas, health supplements, and personal care items, which are marketed both locally and internationally.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	783.88M	1.29B	1.39B	1.11B	620.74M
Gross Profit	394.81M	609.54M	574.15M	448.26M	282.24M
EBITDA	138.31M	115.88M	154.62M	-107.44M	605.44M
Net Income	-15.36M	-20.52M	-108.91M	-376.00M	438.55M
Balance Sheet
Total Assets	2.10B	7.01B	7.60B	7.96B	7.73B
Cash, Cash Equivalents and Short-Term Investments	196.78M	625.01M	683.74M	688.93M	599.18M
Total Debt	560.07M	1.76B	1.80B	1.77B	1.94B
Total Liabilities	709.65M	3.33B	3.64B	4.01B	3.74B
Stockholders Equity	1.39B	2.35B	2.52B	2.57B	2.64B
Cash Flow
Free Cash Flow	157.04M	58.13M	90.14M	298.99M	2.37M
Operating Cash Flow	191.69M	91.58M	116.18M	358.49M	9.18M
Investing Cash Flow	-84.62M	15.06M	-15.91M	-81.78M	337.66M
Financing Cash Flow	-469.97M	-67.25M	-115.27M	-266.48M	-36.50M

Wai Yuen Tong Medicine Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.32
• 50DMA: Negative
• 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 0.31, below the 50-day MA of 0.33, and above the 200-day MA of 0.30, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.89 is Neutral, neither overbought nor oversold. The STOCH value of 45.45 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
2343	79 Outperform	$11.62B	11.44	7.27%	3.51%	12.03%	20.45%
1339	78 Outperform	$369.60B	5.84	17.85%	3.16%	4.62%	81.63%
1113	71 Outperform	$126.17B	9.28	3.52%	5.41%	-3.04%	-20.01%
Sector *	60 Neutral	HK$16.95B	6.14	-7.34%	3.69%	12.24%	-25.44%
0570	58 Neutral	$11.28B	193.10	0.25%	4.59%	-10.72%	-95.88%
0897	55 Neutral	HK$365.66M	51.59	0.55%	9.68%	-66.75%	-83.83%
1680	43 Neutral	HK$4.77B	―	-20.68%	―	-14.44%	-14200.00%