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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)

Rating:61Neutral
Price Target:
HK$0.50
▼(-12.28%Downside)
The overall stock score reflects a company with strong technical indicators and a solid balance sheet, but significant concerns about declining profitability and cash flow issues. The high P/E ratio and lack of dividend yield suggest valuation concerns. Investors should consider the risks associated with the company's current financial performance.

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
The company faces substantial challenges in revenue and profit generation, with declining income statement metrics. The balance sheet is strong with low debt levels, but cash flow issues raise concerns about operational liquidity. Overall, profitability and cash flow management need improvement to ensure long-term financial health.
Income Statement
60
Neutral
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
75
Positive
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
30
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue214.07M344.07M399.66M360.69M308.69M
Gross Profit55.20M104.17M170.79M158.43M136.86M
EBITDA29.82M74.75M130.03M117.02M92.56M
Net Income9.67M48.80M87.83M81.78M63.58M
Balance Sheet
Total Assets540.31M528.53M501.53M395.94M209.26M
Cash, Cash Equivalents and Short-Term Investments229.67M286.27M282.26M176.09M73.19M
Total Debt135.00K72.00K393.00K410.00K5.54M
Total Liabilities56.08M55.64M78.60M58.58M74.43M
Stockholders Equity484.23M472.89M422.93M337.36M134.83M
Cash Flow
Free Cash Flow-55.32M3.38M114.06M-12.87M42.22M
Operating Cash Flow58.98M8.48M125.79M57.60M42.76M
Investing Cash Flow-115.49M-4.19M-11.05M-70.05M-408.00K
Financing Cash Flow-144.00K-326.00K-8.73M115.76M-5.05M

Modern Chinese Medicine Group Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.57
Price Trends
50DMA
0.42
Positive
100DMA
0.40
Positive
200DMA
0.40
Positive
Market Momentum
MACD
0.07
Negative
RSI
64.13
Neutral
STOCH
49.00
Neutral
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 0.57 is above the 20-day moving average (MA) of 0.52, above the 50-day MA of 0.42, and above the 200-day MA of 0.40, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 49.00 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
HK$6.24B6.8111.61%0.84%-18.09%-15.08%
73
Outperform
HK$5.12B11.618.40%0.18%12.41%
61
Neutral
HK$410.40M32.572.03%-39.05%-80.60%
60
Neutral
HK$17.07B6.10-7.44%2.88%11.55%-28.15%
53
Neutral
HK$2.73B-48.48%0.46%-21.82%-700.17%
52
Neutral
HK$3.06B-2.19%5.32%89.43%
46
Neutral
HK$246.30M-40.39%-43.73%-434.56%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1643
Modern Chinese Medicine Group Co. Ltd.
0.65
0.31
91.18%
HK:1652
Fusen Pharmaceutical Co., Ltd.
0.34
-0.67
-66.34%
HK:1763
China Isotope & Radiation Corp.
16.02
5.77
56.29%
HK:2160
MicroPort CardioFlow Medtech Corp.
1.27
0.50
64.94%
HK:2325
Yunkang Group Limited
4.65
-4.05
-46.55%
HK:2877
China Shineway Pharmaceutical Group Limited
8.26
0.90
12.23%

Modern Chinese Medicine Group Co. Ltd. Corporate Events

Modern Chinese Medicine Group Eyes Expansion with New Share Subscription
Jun 5, 2025

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
May 30, 2025

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
Apr 29, 2025

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.

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: Jul 24, 2025