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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

Tong Ren Tang Technologies Co

(OTC:1666)

Rating:69Neutral
Price Target:
Tong Ren Tang Technologies Co shows strong financial health with solid revenue growth and a stable balance sheet; however, declining profitability and cash flow concerns weigh on the score. Technical analysis indicates a neutral outlook, while the attractive valuation could provide support. The absence of recent earnings call data or notable corporate events leaves earnings growth and strategic direction uncertain.

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. (1666) is a renowned Chinese pharmaceutical company with a rich heritage dating back to 1669. The company specializes in the production and distribution of traditional Chinese medicine (TCM) products. As a leading player in the TCM sector, Tong Ren Tang Technologies Co. offers a wide range of products including Chinese patent medicines, health products, and herbal medicines, catering to both domestic and international markets.
How the Company Makes MoneyTong Ren Tang Technologies Co. makes money primarily through the manufacturing and sale of its traditional Chinese medicine products. The company's revenue streams include direct sales to consumers through its extensive retail network, sales to hospitals and clinics, and export sales in international markets. Key revenue drivers include its well-established brand reputation, a broad portfolio of TCM products, and strategic partnerships with healthcare providers and distributors. The company also benefits from the growing global interest in alternative and traditional medicine, which expands its market reach and potential customer base.

Tong Ren Tang Technologies Co Financial Statement Overview

Summary
Tong Ren Tang Technologies Co is in good financial health, with strong revenue growth and a solid balance sheet. However, declining net profit margins and lack of recent cash flow data could pose future challenges. The company should address profitability and cash flow management to maintain its 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.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
7.26B6.77B5.99B5.40B4.61B
Gross Profit
2.88B2.85B2.59B2.29B2.07B
EBIT
985.16M1.12B1.21B1.08B943.55M
EBITDA
1.17B1.30B1.39B1.26B1.14B
Net Income Common Stockholders
521.79M590.19M582.89M507.25M467.55M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.38B4.24B4.18B3.89B3.49B
Total Assets
14.41B13.51B12.48B11.59B10.94B
Total Debt
2.43B1.63B1.59B1.64B1.69B
Net Debt
-1.70B-1.12B-2.13B-1.60B-1.26B
Total Liabilities
4.24B3.86B3.47B3.44B3.19B
Stockholders Equity
7.21B6.89B6.48B5.98B5.73B
Cash FlowFree Cash Flow
-158.56M450.78M565.85M877.01M-110.09M
Operating Cash Flow
15.61M554.17M723.77M1.03B435.81M
Investing Cash Flow
0.00-1.07B43.01M-197.36M-195.44M
Financing Cash Flow
288.35M-497.76M-499.45M-474.67M-164.51M

Tong Ren Tang Technologies Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.12
Price Trends
50DMA
4.90
Positive
100DMA
4.88
Positive
200DMA
5.03
Positive
Market Momentum
MACD
0.06
Positive
RSI
59.60
Neutral
STOCH
78.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1666, the sentiment is Positive. The current price of 5.12 is above the 20-day moving average (MA) of 5.07, above the 50-day MA of 4.90, and above the 200-day MA of 5.03, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 78.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1666.

Tong Ren Tang Technologies Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$5.65B6.2011.61%7.77%-18.09%-15.08%
76
Outperform
$101.88B22.1613.20%4.42%-9.60%-27.18%
69
Neutral
$6.56B11.597.39%3.88%4.70%-13.82%
66
Neutral
$81.38B42.886.14%1.32%7.63%-24.23%
65
Neutral
$67.02B14.716.22%1.96%-2.82%11.93%
62
Neutral
€33.61B9.25
3.02%
54
Neutral
$5.31B3.28-45.10%2.80%16.76%0.02%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1666
Tong Ren Tang Technologies Co
5.12
-0.04
-0.81%
HK:2877
China Shineway Pharmaceutical Group Limited
7.48
-0.06
-0.80%
HK:1177
Sino Biopharmaceutical
4.55
1.86
68.89%
HK:2196
Shanghai Fosun Pharmaceutical (Group) Co
16.54
3.19
23.92%
HK:3320
China Resources Pharmaceutical Group Ltd.
5.35
-0.23
-4.09%
HK:1093
CSPC Pharmaceutical Group
8.86
2.23
33.59%

Tong Ren Tang Technologies Co Corporate Events

Tong Ren Tang Technologies Reports Strong Q1 2025 Financial Results
Apr 28, 2025

Tong Ren Tang Technologies Co. Ltd. announced its unaudited financial results for the first quarter of 2025, reporting an operating revenue of approximately RMB2,035.42 million and a net profit of RMB227.23 million. The announcement highlights the company’s financial stability and growth potential, reinforcing its strong position in the traditional Chinese medicine industry.

Tong Ren Tang Technologies Expands Global Reach Through Strategic Partnership
Apr 8, 2025

Tong Ren Tang Technologies Co. Ltd. announced that its subsidiary, Beijing Tong Ren Tang Chinese Medicine Company Limited, has entered into a strategic cooperation agreement with China Duty Free International Limited. This agreement aims to leverage both parties’ strengths to expand Tong Ren Tang’s overseas markets, focusing on innovative business models and exclusive product versions. The collaboration will enhance the company’s market positioning by integrating resources and exploring multi-dimensional cooperation in business, products, and culture, particularly in the Chinese health food and beverage sector.

Tong Ren Tang Technologies Declares Final Dividend for 2024
Mar 28, 2025

Tong Ren Tang Technologies Co. Ltd. has announced a final cash dividend of RMB 0.18 per share for the financial year ending December 31, 2024, with a payment date set for August 11, 2025. The announcement includes details on withholding tax rates for different categories of shareholders, highlighting a 10% rate for non-resident enterprises and individuals, and a 20% rate for those investing through the Shenzhen-Hong Kong Stock Connect. This dividend declaration reflects the company’s ongoing commitment to returning value to its shareholders, potentially enhancing its market position and investor confidence.

Tong Ren Tang Reports Revenue Growth Amid Profit Decline in 2024
Mar 28, 2025

Tong Ren Tang Technologies Co. Ltd. reported its annual results for 2024, showing a revenue increase of 7.18% to RMB7.26 billion, despite a net profit decline of 10.62% to RMB886.93 million. The company faced challenges due to rising raw material costs and declining sales in the Chinese medicine industry but responded by adjusting marketing strategies and optimizing operations to enhance market competitiveness.

Tong Ren Tang Expands Market Reach with New Medicine Registration in Hong Kong
Mar 20, 2025

Tong Ren Tang Technologies Co. Ltd. announced that its subsidiary, Beijing Tong Ren Tang Chinese Medicine Company Limited, has received the Certificate of Registration for its proprietary medicine, Jin Chai Shi Hu San, from the Chinese Medicine Council of Hong Kong. This certification allows the product to be sold in Hong Kong, aiding in the expansion of the company’s product lines and market reach. Although the registration is a positive step for market expansion, it is not expected to have a significant immediate impact on the company’s operations or financial performance. The company advises caution due to potential influences from policy changes, exchange rates, and market competition.

Tong Ren Tang Technologies Schedules Board Meeting to Discuss Financial Results and Dividend
Mar 13, 2025

Tong Ren Tang Technologies Co. Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss several key financial and operational matters. The agenda includes approving the audited consolidated results for the year ending December 31, 2024, considering the recommendation of a final dividend, and potentially closing the register of members, which could have implications for shareholders and market positioning.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.