Modern Chinese Medicine Group Co. Ltd. (HK:1643)
:1643
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Modern Chinese Medicine Group Co. Ltd.
(1643)
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Rating:59Neutral
Price Target:
HK$0.91
▲(78.24% Upside)
Action:ReiteratedDate:02/03/26
The score is held back primarily by weakening fundamentals—declining revenue/margins and especially the zero operating/free cash flow—despite a strong low-debt balance sheet. Technicals are supportive with a clear uptrend, but elevated RSI suggests the move may be stretched. Valuation (P/E 25.36) looks only fair given the profitability and cash-flow pressures.
Positive Factors
Strong balance sheet / low leverage
An equity ratio near 90% and negligible debt gives long-term financial flexibility: the company can sustain operations during revenue pressure, fund targeted R&D or product development, and pursue opportunistic investments or restructuring without heavy interest burden.
Negative Factors
Zero operating and free cash flow
Zero operating and free cash flow in 2024 is a major structural concern: without internal liquidity the firm cannot reliably fund capex, R&D or working capital from operations. That forces dependence on external financing, increasing refinancing and execution risk despite low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet / low leverage
An equity ratio near 90% and negligible debt gives long-term financial flexibility: the company can sustain operations during revenue pressure, fund targeted R&D or product development, and pursue opportunistic investments or restructuring without heavy interest burden.
Read all positive factors
Modern Chinese Medicine Group Co. Ltd. (1643) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$1.45B
Dividend YieldN/A
Average Volume (3M)639.13K
Price to Earnings (P/E)21.2
Beta (1Y)0.25
Revenue Growth-15.96%
EPS Growth32.95%
CountryHK
Employees190
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - General
Share Statistics
EPS (TTM)-0.03
Shares Outstanding720,000,000
10 Day Avg. Volume382,100
30 Day Avg. Volume639,133
Financial Highlights & Ratios
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 CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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...
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...
Modern Chinese Medicine Group Co. Ltd. Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
75
Positive
Cash Flow
30
Negative
| 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
Positive
0.51
Price Trends
1.27
Positive
0.94
Positive
0.79
Positive
Market Momentum
0.24
Negative
61.55
Neutral
56.97
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 0.51 is below the 20-day moving average (MA) of 1.68, below the 50-day MA of 1.27, and below the 200-day MA of 0.79, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 61.55 is Neutral, neither overbought nor oversold. The STOCH value of 56.97 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$6.40B | 9.87 | 6.19% | 2.76% | 13.59% | 6.31% | |
73 Outperform | HK$7.37B | 6.31 | 11.90% | 5.80% | -20.64% | -25.39% | |
59 Neutral | HK$1.45B | 21.20 | 3.91% | ― | -15.96% | 32.95% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | HK$926.38M | -2.84 | -48.86% | ― | -43.46% | -96.48% | |
46 Neutral | HK$515.64M | -19.30 | -34.90% | 2.15% | -18.98% | -164.82% | |
43 Neutral | HK$3.69B | -218.71 | 0.22% | ― | -4.38% | ― |
* Healthcare Sector Average
HK:1643
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Modern Chinese Medicine Group Co. Ltd. Corporate Events
Modern Chinese Medicine Group to Acquire 30% Stake in HK$41.8 Million Major Transaction
Jan 19, 2026
Modern Chinese Medicine Group Co., Ltd. has entered into a sale and purchase agreement to acquire a 30% stake in a target group for HK$41.82 million in cash, a price based on an independent valuation using a market approach. The deal qualifies as ...
Modern Chinese Medicine Clarifies 60 Million-Share Option Scheme Capacity in 2024 Report
Dec 18, 2025
Modern Chinese Medicine Group Co. Ltd. has clarified details of its share option scheme in relation to its 2024 annual report, confirming that up to 60 million shares, equivalent to 10% of its issued share capital as at the report date, are availa...
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.
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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.