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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 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
HK$3.00
▲(488.24% Upside)
Action:Reiterated
Date:05/07/26
The score is held back primarily by weakening financial performance (revenue decline, margin compression, and a 2025 loss) and pressured free cash flow, partially offset by a very strong low-debt balance sheet and a clear positive technical uptrend.
Positive Factors
Low Leverage / Strong Balance Sheet
Extremely low debt gives the company durable financial flexibility to fund operations, absorb cyclical revenue shocks, and pursue selective investments or M&A without refinancing risk. Low leverage materially lowers solvency risk and supports resilience over a multi-month horizon.
Negative Factors
Sharp Revenue Decline
A ~30% revenue drop materially reduces scale economics and market presence. Persistent top-line erosion undermines fixed-cost coverage and raises the risk of lost distribution/customer relationships, making recovery of prior margins and EBITDA levels a multi-quarter challenge.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Extremely low debt gives the company durable financial flexibility to fund operations, absorb cyclical revenue shocks, and pursue selective investments or M&A without refinancing risk. Low leverage materially lowers solvency risk and supports resilience over a multi-month horizon.
Read all positive factors

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 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 makes money primarily by selling its traditional Chinese medicine products to customers through commercial distribution channels. Revenue is generated when the group manufactures (or arranges the manufacture of) TCM products and recogn...

Modern Chinese Medicine Group Co. Ltd. Financial Statement Overview

Summary
Overall fundamentals are mixed. The balance sheet is a major strength with extremely low leverage (Balance Sheet Score 86), but operating performance deteriorated sharply with ~30% revenue decline in 2025 and a swing to net loss (Income Statement Score 33). Cash generation is pressured with negative free cash flow in 2024–2025 despite positive operating cash flow (Cash Flow Score 40).
Income Statement
33
Negative
Balance Sheet
86
Very Positive
Cash Flow
40
Negative
BreakdownDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue141.42M214.07M344.07M399.66M360.69M
Gross Profit22.73M55.20M104.17M170.79M158.43M
EBITDA-4.63M29.82M74.75M130.03M117.02M
Net Income-13.21M9.67M48.80M87.83M81.78M
Balance Sheet
Total Assets543.63M540.31M528.53M501.53M395.94M
Cash, Cash Equivalents and Short-Term Investments229.81M229.67M286.27M282.26M176.09M
Total Debt69.03K135.00K72.00K393.00K410.00K
Total Liabilities45.43M56.08M55.64M78.60M58.58M
Stockholders Equity498.20M484.23M472.89M422.93M337.36M
Cash Flow
Free Cash Flow-16.58M-55.32M3.38M114.06M-12.87M
Operating Cash Flow4.85M58.98M8.48M125.79M57.60M
Investing Cash Flow-35.37M-115.49M-4.19M-11.05M-70.05M
Financing Cash Flow28.68M-144.00K-326.00K-8.73M115.76M

Modern Chinese Medicine Group Co. Ltd. Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price0.51
Price Trends
50DMA
2.42
Positive
100DMA
1.64
Positive
200DMA
1.16
Positive
Market Momentum
MACD
0.15
Positive
RSI
48.35
Neutral
STOCH
33.77
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 0.51 is below the 20-day moving average (MA) of 2.94, below the 50-day MA of 2.42, and below the 200-day MA of 1.16, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 33.77 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

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
86
Outperform
HK$772.87M3.5812.80%7.52%-9.66%16.17%
60
Neutral
HK$4.75B12.805.98%4.47%-10.79%-24.52%
60
Neutral
HK$653.61M18.095.66%2.92%2.57%-1.27%
58
Neutral
HK$2.01B-4.72-2.70%-32.11%-229.14%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
46
Neutral
HK$356.60M43.65-1.17%7.50%59.60%-351.02%
45
Neutral
HK$160.48M-4.22-30.35%-12.03%6.24%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1643
Modern Chinese Medicine Group Co. Ltd.
2.80
2.46
723.53%
HK:1666
Tong Ren Tang Technologies Co
3.67
-1.21
-24.84%
HK:0897
Wai Yuen Tong Medicine Holdings Limited
0.32
-0.04
-12.50%
HK:0950
Lee's Pharmaceutical Holdings Limited
1.09
-0.32
-22.70%
HK:1498
PuraPharm Corp. Ltd.
0.30
-0.23
-43.27%
HK:0239
Pak Fah Yeow International Limited
2.43
0.20
8.97%

Modern Chinese Medicine Group Co. Ltd. Corporate Events

Modern Chinese Medicine Group Wins Waiver for Delay in Acquisition Circular
May 7, 2026
Modern Chinese Medicine Group Co., Ltd. has secured a waiver from the Hong Kong Stock Exchange allowing further delay in sending a shareholder circular on its previously announced major acquisition. The circular, which will provide detailed inform...
Modern Chinese Medicine Group Seeks More Time for Major Transaction Circular
Apr 30, 2026
Modern Chinese Medicine Group Co., Ltd. has announced a further delay in sending a shareholder circular related to a major transaction involving the acquisition of sale shares, originally expected by 30 April 2026. The company now expects to dispa...
Modern Chinese Medicine Group to Modernise Articles of Association with Digital and Governance Upgrades
Apr 28, 2026
Modern Chinese Medicine Group Co. Ltd. plans to overhaul its constitutional documents by replacing its existing articles of association with a new, third amended and restated version aligned with updated Hong Kong Listing Rules and Cayman Islands ...
Modern Chinese Medicine Group Sets 2026 AGM to Renew Share Mandates and Board Roles
Apr 28, 2026
Modern Chinese Medicine Group Co. Ltd. has called its 2026 annual general meeting for 29 May 2026 in Shijiazhuang, Hebei Province, where shareholders will review the audited consolidated financial statements and the reports of the board and audito...
Modern Chinese Medicine Details Highly Concentrated Insider Shareholding
Apr 17, 2026
Modern Chinese Medicine Group Co., Ltd. has issued a supplemental announcement regarding a high concentration of its shareholding, clarifying the identities of key shareholders previously unnamed. The filing shows that Modern Biotechnology Group H...
Modern Chinese Medicine Flags High Shareholding Concentration After Sharp Price Surge
Apr 14, 2026
Modern Chinese Medicine Group Co., Ltd. has disclosed that the Securities and Futures Commission found a high concentration of its shares among 25 shareholders and related parties as of 30 March 2026, who collectively held 90.6% of the issued shar...
SFC Warns on Shareholding Concentration at Modern Chinese Medicine Group After Sharp Rally
Apr 14, 2026
Hong Kong’s Securities and Futures Commission has warned of a high concentration of shareholding in Modern Chinese Medicine Group, where 25 shareholders and related parties controlled about 90.6% of issued shares as of 30 March 2026. This le...
Modern Chinese Medicine Swings to Loss on Steep Revenue Decline in 2025
Mar 30, 2026
Modern Chinese Medicine Group Co. Ltd., a Hong Kong-listed producer and distributor of traditional Chinese medicinal products, reported a sharp deterioration in profitability for the year ended 31 December 2025. The group operates through subsidia...
Modern Chinese Medicine Group Signals 2025 Loss on Insurance Reform Hit
Mar 25, 2026
Modern Chinese Medicine Group Co., Ltd. has warned investors that it expects to swing to a net loss of at least RMB13 million for the year ended 31 December 2025, compared with a net profit of about RMB9.7 million a year earlier. The company attri...
Modern Chinese Medicine Group Sets March 30 Board Meeting on 2025 Results and Dividend
Mar 18, 2026
Modern Chinese Medicine Group Co., Ltd. announced that its board of directors will convene a meeting on 30 March 2026 to review and approve the audited annual results for the year ended 31 December 2025. At the same meeting, the board will also co...
Modern Chinese Medicine Group Wins HKEX Waiver to Delay Major Transaction Circular
Feb 12, 2026
Modern Chinese Medicine Group Co., Ltd. has obtained a waiver from the Hong Kong Stock Exchange regarding the timing requirements for sending a shareholder circular linked to a major share acquisition. The delay stems from the need for more time t...
Modern Chinese Medicine Group Delays Circular on Major Acquisition
Feb 9, 2026
Modern Chinese Medicine Group Co. Ltd. has announced a delay in sending a shareholder circular related to a major transaction involving the acquisition of sale shares, which was originally expected to be dispatched by 9 February 2026. The postpone...
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: May 07, 2026