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Modern Chinese Medicine Group Co. Ltd. (HK:1643)
:1643
Hong Kong Market
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Modern Chinese Medicine Group Co. Ltd. (1643) AI Stock Analysis

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HK:1643

Modern Chinese Medicine Group Co. Ltd.

(1643)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
HK$0.50
▼(-26.47% Downside)
The stock score is primarily influenced by financial performance challenges, particularly in cash flow management and declining profitability. Technical analysis indicates a neutral to slightly bearish outlook, while valuation suggests moderate pricing. The absence of earnings call insights and corporate events limits additional context.

Modern Chinese Medicine Group Co. Ltd. (1643) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionModern 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 MoneyModern Chinese Medicine Group Co. Ltd. generates revenue primarily through the sale of its traditional Chinese medicine (TCM) products. The company's key revenue streams include retail sales, wholesale distribution to pharmacies and healthcare providers, and possibly export sales to international markets. Additionally, the company might engage in strategic partnerships or collaborations with healthcare institutions to expand its market reach. Revenue can also be supplemented by offering related healthcare services or consultations, leveraging the growing interest in alternative and complementary medicine.

Modern Chinese Medicine Group Co. Ltd. Financial Statement Overview

Summary
Modern Chinese Medicine Group Co. Ltd. faces substantial challenges in revenue and profit generation, as seen in the declining income statement metrics. The balance sheet remains sturdy with low debt levels, but the cash flow issues raise concerns about operational liquidity. Overall, while the company has a strong equity base, its profitability and cash flow management need improvement to ensure 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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue202.20M214.07M344.07M399.66M360.69M308.69M
Gross Profit49.68M55.20M104.17M170.79M158.43M136.86M
EBITDA29.30M29.82M74.75M130.03M117.02M106.19M
Net Income18.98M9.67M48.80M87.83M81.78M63.58M
Balance Sheet
Total Assets532.65M540.31M528.53M501.53M395.94M209.26M
Cash, Cash Equivalents and Short-Term Investments283.25M229.67M286.27M282.26M176.09M73.19M
Total Debt138.00K135.00K72.00K393.00K410.00K5.54M
Total Liabilities47.13M56.08M55.64M78.60M58.58M74.43M
Stockholders Equity485.52M484.23M472.89M422.93M337.36M134.83M
Cash Flow
Free Cash Flow-7.64M-55.32M3.38M114.06M-12.87M47.31M
Operating Cash Flow-7.69M58.98M8.48M125.79M57.60M47.92M
Investing Cash Flow-765.50K-115.49M-4.19M-11.05M-70.05M-611.29K
Financing Cash Flow0.00-144.00K-326.00K-8.73M115.76M-5.40M

Modern Chinese Medicine Group Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.68
Price Trends
50DMA
0.71
Negative
100DMA
0.60
Positive
200DMA
0.49
Positive
Market Momentum
MACD
>-0.01
Positive
RSI
40.32
Neutral
STOCH
42.42
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 0.68 is below the 20-day moving average (MA) of 0.72, below the 50-day MA of 0.71, and above the 200-day MA of 0.49, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.32 is Neutral, neither overbought nor oversold. The STOCH value of 42.42 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$5.54B12.098.59%3.25%13.59%6.31%
74
Outperform
HK$6.32B7.0810.85%5.95%-20.64%-25.39%
60
Neutral
HK$496.80M20.123.98%-15.96%32.95%
52
Neutral
HK$739.29M-47.91%1.87%-18.98%-164.82%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
51
Neutral
HK$536.71M-40.38%-43.46%-96.48%
49
Neutral
HK$2.99B563.640.22%-4.38%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1643
Modern Chinese Medicine Group Co. Ltd.
0.68
0.34
100.00%
HK:1652
Fusen Pharmaceutical Co., Ltd.
0.71
-0.28
-28.28%
HK:1763
China Isotope & Radiation Corp.
17.41
6.39
57.99%
HK:2160
MicroPort CardioFlow Medtech Corp.
1.26
0.48
61.54%
HK:2325
Yunkang Group Limited
1.04
-7.96
-88.44%
HK:2877
China Shineway Pharmaceutical Group Limited
8.49
-0.64
-7.01%

Modern Chinese Medicine Group Co. Ltd. Corporate Events

Modern Chinese Medicine Group Reports Profit Amid Revenue Decline
Aug 29, 2025

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
Aug 15, 2025

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
Aug 15, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 21, 2025