Modern Chinese Medicine Group Co. Ltd. (1643) AI Stock Analysis

• Market Cap: HK$367.20M
• Dividend Yield: N/A
• Average Volume (3M): 639.13K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.42
• Revenue Growth: -15.96%
• EPS Growth: 32.95%
• Country: HK
• Employees: 190
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - General
• EPS (TTM): <0.01
• Shares Outstanding: 720,000,000
• 10 Day Avg. Volume: 382,100
• 30 Day Avg. Volume: 639,133
• PEG Ratio: -0.27
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.99
• P/FCF Ratio: -3.82
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: HK$0.67 ▲(31.37% Upside)

Modern Chinese Medicine Group Co. Ltd. faces significant financial performance challenges, particularly in cash flow and profitability, which are the most impactful factors. Technical analysis indicates bearish momentum, further weighing on the stock's outlook. Valuation is moderate but lacks income appeal due to no dividend yield.

Positive Factors

Strong Balance Sheet

A strong balance sheet with a high equity ratio and minimal debt reliance provides financial stability and resilience against market fluctuations.

Low Leverage

Minimal reliance on debt reduces financial risk and interest obligations, allowing more flexibility in capital allocation and strategic investments.

EPS Growth

Positive EPS growth indicates improving profitability and potential for increased shareholder value, despite revenue challenges.

Negative Factors

Declining Revenue

Declining revenue growth reflects challenges in market demand or competitive positioning, potentially impacting long-term business sustainability.

Cash Flow Issues

Zero operating cash flow signals potential liquidity problems, limiting the company's ability to invest in growth and meet financial obligations.

Profitability Decline

A significant decline in gross profit margin indicates reduced pricing power or increased costs, challenging the company's ability to maintain profitability.

Modern Chinese Medicine Group Co. Ltd. Business Overview & Revenue Model

Company Description

Modern Chinese Medicine Group Co., Ltd., an investment holding company, produces and sells proprietary Chinese medicines for elderlies and aged-middle in the People's Republic of China. It offers therapeutics for the qi-deficiency and blood-statis, cardio-cerebrovascular, digestive and gastrointestinal, gynecological, respiratory system, and nervous system conditions. The company was founded in 1986 and is headquartered in Chengde, China. Modern Chinese Medicine Group Co., Ltd. is a subsidiary of Modern Biotechnology Group Holdings Co., Ltd.

How the Company Makes Money

The company generates revenue primarily through the sale of its herbal products and supplements, which are marketed both domestically and internationally. Key revenue streams include direct sales through retail outlets, online e-commerce platforms, and partnerships with healthcare providers and wellness centers. Additionally, Modern Chinese Medicine Group Co. Ltd. may benefit from collaborations with research institutions for the development of new products, which can also create licensing opportunities. Seasonal promotions, educational workshops on traditional Chinese medicine, and customized wellness programs further enhance its revenue potential.

Modern Chinese Medicine Group Co. Ltd. Financial Statement Overview

Summary

The company faces significant challenges in revenue and profit generation, with declining income statement metrics. Despite a strong balance sheet with low debt levels, cash flow issues raise concerns about operational liquidity. Overall, profitability and cash flow management need improvement for long-term financial health.

Income Statement

The income statement shows a declining revenue trend over the past few years, with total revenue dropping significantly from 2022 to 2024. Gross Profit Margin decreased from 42.7% in 2022 to 25.8% in 2024, and Net Profit Margin also shrank from 22.0% to 4.5% over the same period. The company has faced challenges maintaining profitability as indicated by the reducing EBIT and EBITDA margins.

Balance Sheet

The balance sheet is strong with a high equity ratio of 89.6% in 2024, reflecting financial stability and low leverage. The Debt-to-Equity Ratio is negligible, indicating minimal reliance on debt. Return on Equity dropped to 2.0% in 2024 from 20.8% in 2022, suggesting declining profitability relative to shareholders' equity.

Cash Flow

The cash flow statement reveals significant challenges. Operating Cash Flow has been zero in 2024, indicating potential liquidity issues. Free Cash Flow has also been zero for 2024, reflecting poor cash generation from operations. The Free Cash Flow to Net Income Ratio is not calculable due to zero Free Cash Flow, highlighting a critical area of concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	202.20M	214.07M	344.07M	399.66M	360.69M	308.69M
Gross Profit	49.68M	55.20M	104.17M	170.79M	158.43M	136.86M
EBITDA	29.30M	29.82M	74.75M	130.03M	117.02M	106.19M
Net Income	18.98M	9.67M	48.80M	87.83M	81.78M	63.58M
Balance Sheet
Total Assets	532.65M	540.31M	528.53M	501.53M	395.94M	209.26M
Cash, Cash Equivalents and Short-Term Investments	283.25M	229.67M	286.27M	282.26M	176.09M	73.19M
Total Debt	138.00K	135.00K	72.00K	393.00K	410.00K	5.54M
Total Liabilities	47.13M	56.08M	55.64M	78.60M	58.58M	74.43M
Stockholders Equity	485.52M	484.23M	472.89M	422.93M	337.36M	134.83M
Cash Flow
Free Cash Flow	-7.64M	-55.32M	3.38M	114.06M	-12.87M	47.31M
Operating Cash Flow	-7.69M	58.98M	8.48M	125.79M	57.60M	47.92M
Investing Cash Flow	-765.50K	-115.49M	-4.19M	-11.05M	-70.05M	-611.29K
Financing Cash Flow	0.00	-144.00K	-326.00K	-8.73M	115.76M	-5.40M

Modern Chinese Medicine Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1643, the sentiment is Negative. The current price of 0.51 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.66, and below the 200-day MA of 0.55, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 29.28 is Positive, neither overbought nor oversold. The STOCH value of 45.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1643.

Modern Chinese Medicine Group Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1763	79 Outperform	HK$6.49B	14.17	8.59%	2.76%	13.59%	6.31%
2877	73 Outperform	HK$6.61B	7.41	10.85%	5.80%	-20.64%	-25.39%
1643	53 Neutral	HK$367.20M	14.87	3.98%	―	-15.96%	32.95%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
1652	49 Neutral	HK$588.18M	-3.12	-40.38%	―	-43.46%	-96.48%
2325	46 Neutral	HK$552.91M	-0.68	-47.91%	2.15%	-18.98%	-164.82%
2160	43 Neutral	HK$6.30B	450.00	0.22%	―	-4.38%	―

Modern Chinese Medicine Group Co. Ltd. Corporate Events

Modern Chinese Medicine Group Reports Profit Amid Revenue Decline

Modern Chinese Medicine Group Co., Ltd. reported a 15.4% decrease in revenue to RMB64.8 million for the first half of 2025 compared to the previous year. Despite the revenue decline, the company turned its financial performance around, achieving a profit of RMB2.5 million compared to a loss of RMB6.9 million in the same period last year, indicating improved cost management and operational efficiency.

The most recent analyst rating on (HK:1643) stock is a Hold with a HK$0.50 price target. To see the full list of analyst forecasts on Modern Chinese Medicine Group Co. Ltd. stock, see the HK:1643 Stock Forecast page.

Modern Chinese Medicine Group Expects Profit Turnaround Amidst Revenue Decline

Modern Chinese Medicine Group Co., Ltd. announced a positive profit alert, expecting a profit of at least RMB2.0 million for the first half of 2025, compared to a loss of RMB6.9 million in the same period of 2024. This turnaround is attributed to a significant decrease in disposal loss on property, plant, and equipment. However, the company anticipates a revenue decline of 15% to 20% due to intense industry competition.

Modern Chinese Medicine Group Announces Upcoming Board Meeting for Interim Results

Modern Chinese Medicine Group Co., Ltd. has announced that its board of directors will meet on August 29, 2025, to consider and approve the interim results for the first half of the year and discuss the potential payment of an interim dividend. This meeting is significant as it will provide insights into the company’s financial performance and future dividend policies, which are crucial for stakeholders and investors.