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

• Market Cap: HK$511.20M
• Dividend Yield: N/A
• Average Volume (3M): 902.47K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.40
• 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: 1,040,000
• 30 Day Avg. Volume: 902,466
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$0.50
• Price Target Upside: -29.58% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: HK$0.50 ▼(-29.58% 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. Business Overview & Revenue Model

Company Description

Modern Chinese Medicine Group Co. Ltd. (1643) is a company that operates in the healthcare sector, focusing on the development, production, and distribution of traditional Chinese medicine (TCM) products. The company offers a range of TCM products and healthcare services aimed at promoting wellness and addressing various health conditions. Its core products include herbal medicines, health supplements, and other therapeutic products derived from traditional Chinese medicinal practices.

How the Company Makes Money

Modern 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.

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: Neutral
• Last Price: 0.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1643, the sentiment is Neutral. The current price of 0.71 is below the 20-day moving average (MA) of 0.71, above the 50-day MA of 0.69, and above the 200-day MA of 0.47, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	73 Outperform	HK$6.16B	6.90	11.25%	6.20%	-20.64%	-25.39%
1763	73 Outperform	HK$5.08B	11.09	―	2.52%	13.59%	6.31%
1643	61 Neutral	HK$511.20M	20.70	3.98%	―	-15.96%	32.95%
2325	52 Neutral	HK$820.05M	-1.00	-69.22%	1.52%	-18.98%	-164.82%
2160	51 Neutral	HK$2.99B	563.64	-2.26%	―	-4.38%	―
1652	51 Neutral	HK$514.66M	-2.73	-51.07%	―	-43.46%	-96.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

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.