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Tong Ren Tang Technologies Co Ltd Class H (HK:1666)
:1666

Tong Ren Tang Technologies Co (1666) AI Stock Analysis

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HK:1666

Tong Ren Tang Technologies Co

(1666)

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Neutral 68 (OpenAI - 4o)
Rating:68Neutral
Price Target:
HK$5.50
▲(22.49% Upside)
Tong Ren Tang Technologies Co's overall stock score is primarily influenced by its strong financial performance, despite concerns about declining profitability and cash flow issues. The technical analysis indicates a bearish trend, which is a significant risk. The valuation is reasonable but not enough to outweigh the financial and technical challenges.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.
Balance Sheet Strength
A strong balance sheet with low leverage provides financial flexibility and resilience, supporting sustainable growth and investment capacity.
Gross Profit Margin
A robust gross profit margin reflects efficient cost management and pricing power, contributing to long-term profitability and competitive advantage.
Negative Factors
Net Profit Margin Decline
Declining net profit margins suggest challenges in cost control or pricing, potentially impacting long-term profitability and shareholder returns.
Cash Flow Concerns
Inconsistent cash flow generation can hinder operational efficiency and growth investments, affecting the company's ability to sustain long-term operations.
EPS Growth Decline
A significant decline in EPS growth indicates challenges in profitability and earnings generation, potentially affecting investor confidence and valuation.

Tong Ren Tang Technologies Co (1666) vs. iShares MSCI Hong Kong ETF (EWH)

Tong Ren Tang Technologies Co Business Overview & Revenue Model

Company DescriptionTong Ren Tang Technologies Co. Ltd. manufactures and sells Chinese medicine products in Mainland China and Hong Kong. The company also cultivates, purchases, and sells Chinese medicinal raw materials; produces and sells ointment, tea drinks, and foot care products; sells medicinal products; and provides medical research and development, advertisement, and Chinese medical consultation and treatment services. In addition, it is involved in the technological development and sale of biological products, Chinese and Western medicines, cosmetics, and healthcare products; wholesale and retail sale of Chinese medicines and healthcare products; and internal and external surgery, medical examination, and hospital management activities. Further, it produces and processes biochemical products; extracts and processes plants; and produces food and daily chemical products, and medical services. The company was founded in 1669 and is based in Beijing, the People's Republic of China.
How the Company Makes MoneyThe company generates revenue through multiple key streams, including the sale of traditional Chinese medicinal products, health supplements, and over-the-counter pharmaceuticals. A significant portion of its earnings comes from its extensive distribution network, which includes retail pharmacies, online platforms, and international markets. Additionally, Tong Ren Tang Technologies Co has established partnerships with various healthcare institutions and distributors to enhance its market reach and brand visibility. The company's focus on innovation and product development, combined with its strong brand reputation, also contributes to its ability to command premium pricing for its products, thereby boosting its overall profitability.

Tong Ren Tang Technologies Co Financial Statement Overview

Summary
Tong Ren Tang Technologies Co shows strong revenue growth and a solid balance sheet with low leverage. However, declining net profit margins and lack of recent cash flow data are concerns that could affect future financial stability.
Income Statement
78
Positive
Tong Ren Tang Technologies Co has demonstrated a strong revenue growth trend over the years, with a 7.17% increase from 2022 to 2023 and a 7.18% increase from 2023 to 2024. The Gross Profit Margin for 2024 is approximately 39.64%, which is robust for the industry. However, the Net Profit Margin decreased from 8.71% in 2023 to 7.19% in 2024, indicating a decline in profitability. EBIT and EBITDA margins are stable, suggesting operational efficiency.
Balance Sheet
82
Very Positive
The company maintains a strong financial position with a Debt-to-Equity Ratio of 0.34 in 2024, indicating low leverage and financial stability. The Return on Equity (ROE) for 2024 stands at 7.24%, which is reasonable. The Equity Ratio is high at 50%, reflecting a solid capital structure with a significant portion of assets funded by equity.
Cash Flow
65
Positive
The Cash Flow statement shows inconsistency, with no Free Cash Flow reported for 2024, which may indicate cash management issues. Historically, Operating Cash Flow has been positive, but the lack of data for 2024 raises concerns. The company should focus on ensuring consistent cash flow to support operations and growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.95B7.26B6.77B5.99B5.40B4.61B
Gross Profit2.77B2.88B2.85B2.59B2.29B2.07B
EBITDA1.11B1.17B1.30B1.39B1.26B1.14B
Net Income431.71M521.79M590.19M582.89M507.25M467.55M
Balance Sheet
Total Assets14.54B14.41B13.51B12.48B11.59B10.94B
Cash, Cash Equivalents and Short-Term Investments5.15B4.38B4.24B4.18B3.89B3.49B
Total Debt2.41B2.43B1.63B1.59B1.64B1.69B
Total Liabilities4.33B4.24B3.86B3.47B3.44B3.19B
Stockholders Equity7.30B7.21B6.89B6.48B5.98B5.73B
Cash Flow
Free Cash Flow1.44B-158.56M450.78M565.85M877.01M-110.09M
Operating Cash Flow1.59B15.61M554.17M723.77M1.03B435.81M
Investing Cash Flow-116.24M1.05B-1.07B43.01M-197.36M-195.44M
Financing Cash Flow-634.06M288.35M-497.76M-499.45M-474.67M-164.51M

Tong Ren Tang Technologies Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.49
Price Trends
50DMA
4.61
Negative
100DMA
4.74
Negative
200DMA
4.83
Negative
Market Momentum
MACD
-0.03
Negative
RSI
44.69
Neutral
STOCH
58.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1666, the sentiment is Negative. The current price of 4.49 is above the 20-day moving average (MA) of 4.46, below the 50-day MA of 4.61, and below the 200-day MA of 4.83, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 44.69 is Neutral, neither overbought nor oversold. The STOCH value of 58.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1666.

Tong Ren Tang Technologies Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
HK$7.07B7.9310.85%5.80%-20.64%-25.39%
68
Neutral
HK$5.76B12.405.98%4.47%0.73%-34.04%
66
Neutral
HK$7.31B14.1813.22%4.04%24.13%4.29%
57
Neutral
HK$9.99B52.636.73%23.37%
54
Neutral
HK$11.08B-38.38-1.26%3.66%-9.58%-128.83%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1666
Tong Ren Tang Technologies Co
4.47
-0.17
-3.73%
HK:3613
Beijing Tong Ren Tang Chinese Medicine Co
8.71
0.99
12.79%
HK:0570
China Traditional Chinese Medicine Holdings Co
2.18
0.33
18.09%
HK:2256
Abbisko Cayman Limited
14.73
10.31
233.26%
HK:2877
China Shineway Pharmaceutical Group Limited
9.28
1.53
19.74%
HK:0723
Reliance Global Holdings Limited
0.30
0.01
3.45%

Tong Ren Tang Technologies Co Corporate Events

Tong Ren Tang Technologies Wins Shareholder Backing for Key Group Agreements and Board Appointment
Dec 30, 2025

Tong Ren Tang Technologies Co. Ltd. announced that shareholders approved all resolutions at an extraordinary general meeting held in Beijing on 30 December 2025. Investors endorsed the renewal of the Distribution Framework Agreement and the Master Procurement Agreement with China Beijing Tong Ren Tang Group Co., Ltd. for the period from 1 January 2026 to 31 December 2028, ensuring the continuation of key connected transactions that underpin the group’s sales and supply-chain arrangements. The meeting also approved the appointment of Ms. Du Xin as a non-executive director of the ninth session of the board and her related remuneration package, reinforcing the company’s governance structure as it enters a new three-year operating cycle under refreshed intra-group commercial frameworks.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Sets Out Board Line-Up and Committee Roles
Dec 30, 2025

Tong Ren Tang Technologies Co. Ltd. has announced the current composition of its board of directors, comprising executive, non-executive, independent non-executive and an employee director, with Zhang Yi serving as chairman and Zhang Chun You as general manager. The company also confirmed the membership and chairpersons of its four key board committees—Audit, Nomination, Remuneration, and Strategy and Planning—clarifying governance responsibilities and reinforcing its corporate oversight structure, a move that underscores continued emphasis on compliance, strategic planning and stakeholder accountability.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Renews Connected Property Leasing Deal With Controlling Shareholder
Dec 30, 2025

Tong Ren Tang Technologies has renewed its property leasing framework agreement with its ultimate controlling shareholder, Tong Ren Tang Holdings, for a further three-year term from 1 January 2026 to 31 December 2028, covering the lease of production, office, warehouse and staff quarters needed for the group’s operations. The arrangement, treated as continuing connected transactions and an asset acquisition under Hong Kong Listing Rules and IFRS 16, will be subject to reporting, annual review and announcement requirements but will not require independent shareholders’ approval, with rental levels to be set by reference to market prices and on arm’s length terms, helping to secure stable operational premises while addressing governance and pricing safeguards for minority investors.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Co Renews Land Use Right Leasing Agreement
Nov 28, 2025

Tong Ren Tang Technologies Co has renewed its Land Use Right Leasing Agreement with Tong Ren Tang Holdings, extending the lease for an additional three years from October 2025 to October 2028. This renewal allows the company to continue its operations at a prime location in Beijing, which is crucial for its business activities and development. The agreement is seen as beneficial due to the stable lease terms and cost savings from avoiding relocation, aligning with the company’s strategic interests and supporting its future business needs.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Co Revises Trademark Licence Agreement
Nov 28, 2025

Tong Ren Tang Technologies Co has announced a Supplemental Trademark Licence Agreement with Tong Ren Tang Holdings, revising the terms and scope of its Current Trademark Licence Agreement. This includes changes to the subsidiaries entitled to use the ‘Tong Ren Tang’ tradename and trademarks, as well as adjustments to the annual caps for transactions under the agreement for 2026 and 2027. These revisions are in compliance with the Hong Kong Listing Rules and are significant for the company’s operational strategy and market positioning, as they impact the company’s licensing arrangements and financial planning.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Announces EGM to Approve Key Agreements and Board Appointment
Nov 28, 2025

Tong Ren Tang Technologies Co. Ltd. has announced an Extraordinary General Meeting (EGM) scheduled for December 30, 2025, to approve key agreements and appointments. The company seeks shareholder approval for the renewal of its Distribution Framework Agreement and Master Procurement Agreement with China Beijing Tong Ren Tang Group Co., Ltd., which will govern connected transactions from 2026 to 2028. Additionally, the appointment of Ms. Du Xin as a non-executive director is on the agenda, reflecting the company’s ongoing efforts to strengthen its governance and operational framework.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Announces Director Change
Nov 28, 2025

Tong Ren Tang Technologies Co. Ltd. announced the resignation of Mr. Chen Fei from his role as a non-executive director due to work adjustments, effective upon the election of a new director by shareholders. The company has proposed Ms. Du Xin as the new non-executive director, pending shareholder approval. Ms. Du, with a strong background in economics and management within the Tong Ren Tang Group, is expected to bring valuable expertise to the board, although her appointment will not include remuneration.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Co. Announces Key Corporate Developments
Nov 28, 2025

Tong Ren Tang Technologies Co. has announced the proposed renewal of its continuing connected transactions and the appointment of a new director. These developments are set to be discussed at an Extraordinary General Meeting (EGM) scheduled for December 30, 2025. The renewal of agreements and leadership changes are expected to impact the company’s operational strategies and governance, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Reports Strong Q3 2025 Financials
Oct 28, 2025

Tong Ren Tang Technologies Co. Ltd. announced its unaudited financial results for the third quarter of 2025, reporting operating revenue of approximately RMB4,979.64 million and net profits attributable to shareholders of RMB416.26 million. The announcement highlights the company’s stable financial performance, with total assets recorded at RMB14,595.89 million, reflecting its strong market position and ongoing commitment to transparency for its stakeholders.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

Tong Ren Tang Technologies Delays Circular Dispatch for Transaction Renewals
Oct 22, 2025

Tong Ren Tang Technologies Co. announced a delay in the dispatch of a circular related to the renewal of continuing connected transactions under the Distribution Framework Agreement and the Master Procurement Agreement. The delay, which pushes the dispatch date to on or before November 30, 2025, is due to the additional time needed to finalize the circular’s details and arrange its publication.

The most recent analyst rating on (HK:1666) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on Tong Ren Tang Technologies Co stock, see the HK:1666 Stock Forecast page.

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: Oct 14, 2025