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

• Market Cap: HK$450.04M
• Dividend Yield: 7.5%
• Average Volume (3M): 632.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: 59.60%
• EPS Growth: -351.02%
• Country: HK
• Employees: 817
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): <0.01
• Shares Outstanding: 1,125,102,900
• 10 Day Avg. Volume: 746,291
• 30 Day Avg. Volume: 632,591
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: HK$0.50 ▲(25.00% Upside)

The overall stock score reflects a combination of mixed financial performance and technical indicators, along with a high valuation. The company's stable gross profit margins and manageable leverage are offset by challenges in profitability and cash flow management. Technical analysis suggests a neutral to bearish outlook, and the high P/E ratio indicates potential overvaluation, despite an attractive dividend yield.

Positive Factors

Stable Gross Profit Margins

Stable gross profit margins suggest effective cost management in production, providing a reliable foundation for future profitability.

Manageable Leverage

Low leverage enhances financial stability, allowing the company to weather economic fluctuations and invest in growth opportunities.

Strong Distribution Network

A robust distribution network expands market reach and supports revenue growth by effectively delivering products to a broad customer base.

Negative Factors

Inconsistent Revenue Growth

Volatile revenue growth raises concerns about the company's ability to sustain long-term expansion and market competitiveness.

Operational Inefficiencies

Weak operational margins indicate inefficiencies that could hinder profitability and limit the company's ability to invest in future growth.

Cash Flow Management Challenges

Negative cash flow growth suggests difficulties in generating cash, which could impact the company's ability to fund operations and growth initiatives.

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 specializing in traditional Chinese medicine (TCM) and health products. The company operates in the TCM sector, focusing on the research, development, manufacturing, and distribution of herbal medicines, health supplements, and related products. Wai Yuen Tong is known for its commitment to quality and innovation in TCM, providing a wide range of products that cater to the growing consumer demand for natural health solutions.

How the Company Makes Money

Wai Yuen Tong Medicine Holdings Limited generates revenue primarily through the sale of its traditional Chinese medicine products and health supplements. The company has established a strong distribution network, including retail outlets and online platforms, which allows it to reach a broad customer base. Key revenue streams include the sale of proprietary herbal formulations, dietary supplements, and wellness products. Additionally, the company benefits from partnerships with various healthcare providers and distributors, enhancing its market presence and driving sales. The increasing consumer trend towards health and wellness, coupled with Wai Yuen Tong's focus on quality and effective marketing strategies, contributes significantly to its earnings.

Wai Yuen Tong Medicine Holdings Limited Financial Statement Overview

Summary

The company exhibits a mixed financial performance. While gross profit margins are stable and leverage is manageable, challenges exist with profitability and cash flow management. Revenue growth is inconsistent, and operational inefficiencies impact margins.

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	745.30M	745.30M	783.88M	1.29B	1.39B	1.11B
Gross Profit	376.45M	376.45M	394.81M	609.54M	574.15M	448.26M
EBITDA	40.23M	122.72M	116.33M	115.88M	156.19M	-102.78M
Net Income	7.10M	7.10M	-15.36M	-20.52M	-108.91M	-376.00M
Balance Sheet
Total Assets	1.74B	1.74B	2.10B	7.01B	7.60B	7.96B
Cash, Cash Equivalents and Short-Term Investments	146.55M	146.55M	196.78M	625.01M	683.74M	688.93M
Total Debt	435.41M	435.41M	560.07M	1.76B	1.80B	1.77B
Total Liabilities	555.68M	555.68M	709.65M	3.33B	3.64B	4.01B
Stockholders Equity	1.18B	1.18B	1.39B	2.35B	2.52B	2.57B
Cash Flow
Free Cash Flow	88.04M	75.16M	157.04M	58.13M	90.14M	298.99M
Operating Cash Flow	115.20M	102.32M	191.69M	91.58M	116.18M	358.49M
Investing Cash Flow	231.81M	280.89M	-84.62M	15.06M	-15.91M	-81.78M
Financing Cash Flow	-384.56M	-405.69M	-469.97M	-67.25M	-115.27M	-266.48M

Wai Yuen Tong Medicine Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0897, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.40, below the 50-day MA of 0.43, and above the 200-day MA of 0.37, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 43.75 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	74 Outperform	HK$766.63M	10.80	9.75%	7.52%	-24.96%	-26.43%
3737	61 Neutral	HK$448.91M	20.15	1.87%	9.43%	-1.99%	-81.52%
0858	54 Neutral	HK$229.50M	-0.66	-32.04%	―	-11.89%	-290.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
0897	46 Neutral	HK$450.04M	-31.71	-1.16%	7.50%	59.60%	-351.02%
0455	41 Neutral	HK$234.35M	-3.51	-13.08%	―	-19.28%	-42.27%
1498	41 Neutral	HK$192.58M	-3.74	-33.22%	―	-17.32%	55.74%

Wai Yuen Tong Medicine Holdings Limited Corporate Events

Wai Yuen Tong Medicine’s AGM Resolutions Passed Unanimously

Wai Yuen Tong Medicine Holdings Limited announced that all resolutions proposed at its Annual General Meeting held on 19 August 2025 were passed unanimously by shareholders. This includes the re-election of directors, re-appointment of auditors, and approval of amendments to the share option scheme, indicating strong shareholder support and stability in the company’s governance and strategic direction.

The most recent analyst rating on (HK:0897) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Wai Yuen Tong Medicine Holdings Limited stock, see the HK:0897 Stock Forecast page.