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

• Market Cap: HK$228.00M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): 24.6
• Beta (1Y): 0.31
• Revenue Growth: -39.05%
• EPS Growth: -80.60%
• Country: HK
• Employees: 190
• Sector: Healthcare
• Sector Strength: 40
• Industry: Drug Manufacturers - General
• EPS (TTM): 0.02
• Shares Outstanding: 600,000,000
• 10 Day Avg. Volume: 294,000
• 30 Day Avg. Volume: 1,289,200
• PEG Ratio: -0.34
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -5.00
• 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: 61 Neutral
• Price Target: HK$0.50 ▲(31.58%Upside)

The most significant factor affecting the score is the financial performance, which highlights challenges in profitability and cash flow despite a strong balance sheet. Technical analysis provides some positive momentum, but the valuation suggests the stock might not be undervalued. Overall, the score reflects a cautious outlook with potential liquidity concerns.

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

Company Description

Modern Chinese Medicine Group Co. Ltd. (1643) is a company dedicated to the research, development, production, and sale of traditional Chinese medicine (TCM) products. The company operates within the healthcare sector, focusing on blending ancient Chinese medicinal practices with modern scientific methodologies. Its core products include a range of proprietary Chinese medicines, healthcare products, and herbal supplements designed to promote wellness and address various health conditions.

How the Company Makes Money

The company generates revenue primarily through the sale of its traditional Chinese medicine products. This includes proprietary Chinese medicines, healthcare products, and herbal supplements, which are distributed through a variety of channels including pharmacies, specialty stores, and direct sales. The company may also engage in partnerships with other healthcare providers and distributors to expand its market reach. Additionally, Modern Chinese Medicine Group Co. Ltd. may invest in research and development to innovate and enhance its product offerings, thereby attracting more customers and increasing sales.

Modern Chinese Medicine Group Co. Ltd. Financial Statement Overview

Summary

The income statement indicates a declining revenue and profit margin trend, with significant drops in both gross and net profit margins from 2022 to 2024. The balance sheet is strong with high equity and low debt, offering financial stability. However, the cash flow statement reveals severe liquidity issues, with zero operating and free cash flow in 2024, posing a major risk to operational sustainability.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	214.07M	344.07M	399.66M	360.69M	308.69M
Gross Profit	55.20M	104.17M	170.79M	158.43M	136.86M
EBITDA	29.82M	74.75M	130.03M	117.02M	92.56M
Net Income	9.67M	48.80M	87.83M	81.78M	63.58M
Balance Sheet
Total Assets	540.31M	528.53M	501.53M	395.94M	209.26M
Cash, Cash Equivalents and Short-Term Investments	229.67M	286.27M	282.26M	176.09M	73.19M
Total Debt	135.00K	72.00K	393.00K	410.00K	5.54M
Total Liabilities	56.08M	55.64M	78.60M	58.58M	74.43M
Stockholders Equity	484.23M	472.89M	422.93M	337.36M	134.83M
Cash Flow
Free Cash Flow	-55.32M	3.38M	114.06M	-12.87M	42.22M
Operating Cash Flow	58.98M	8.48M	125.79M	57.60M	42.76M
Investing Cash Flow	-115.49M	-4.19M	-11.05M	-70.05M	-408.00K
Financing Cash Flow	-144.00K	-326.00K	-8.73M	115.76M	-5.05M

Modern Chinese Medicine Group Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1643, the sentiment is Positive. The current price of 0.38 is above the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.36, and below the 200-day MA of 0.38, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 74.25 is Negative, neither overbought nor oversold. The STOCH value of 96.83 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
2877	74 Outperform	HK$5.92B	6.50	11.61%	9.82%	-18.09%	-15.08%
1763	73 Outperform	HK$4.86B	11.03	8.40%	4.43%	12.41%	―
1643	61 Neutral	HK$228.00M	24.57	2.03%	―	-39.05%	-80.60%
Sector *	60 Neutral	HK$15.31B	5.72	-7.43%	4.61%	11.60%	-21.06%
2325	52 Neutral	HK$2.45B	―	-48.48%	0.51%	-21.82%	-700.17%
1652	49 Neutral	HK$286.74M	―	-40.39%	―	-43.73%	-434.56%
2160	47 Neutral	HK$2.17B	―	-2.19%	―	5.32%	89.43%

Modern Chinese Medicine Group Co. Ltd. Corporate Events

Modern Chinese Medicine Group Eyes Expansion with New Share Subscription

Modern Chinese Medicine Group Co., Ltd. announced plans to use proceeds from a new share subscription for investment and business development, with a focus on acquiring a traditional Chinese medicine manufacturer in Hong Kong. The company aims to enhance its research and development capabilities and expand its sales network. Despite preliminary discussions, no binding agreement has been made, and the company is exploring other opportunities. The company plans to utilize its cash reserves for various strategic initiatives, including establishing a healthcare food factory, setting up a research team, and expanding distribution networks.

Modern Chinese Medicine Group Successfully Passes All AGM Resolutions

Modern Chinese Medicine Group Co., Ltd. announced that all resolutions proposed at their annual general meeting on May 30, 2025, were passed. Key resolutions included the re-election of directors, authorization of directors’ remuneration, reappointment of auditors, and mandates for share repurchase and issuance. The successful passing of these resolutions reflects strong shareholder support and positions the company for continued operational and strategic flexibility.

Modern Chinese Medicine Group Announces 2025 AGM Agenda

Modern Chinese Medicine Group Co., Ltd. has announced its 2025 Annual General Meeting to be held on May 30, 2025, in Shijiazhuang City, Hebei Province, PRC. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, appointment of auditors, and authorization for share repurchase and issuance. These resolutions aim to strengthen the company’s governance and operational flexibility, potentially impacting its market position and shareholder value.

Modern Chinese Medicine Group Announces New Share Subscription Agreement

Modern Chinese Medicine Group Co., Ltd. has entered into a Subscription Agreement to issue 120,000,000 new shares at HK$0.27 per share, raising HK$32,400,000 for future investments and business development. This strategic move represents 20% of the company’s existing share capital and aims to strengthen its market position, although the completion of the subscription is contingent upon certain conditions being met.