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Tong Ren Tang Technologies Co Ltd Class H (HK:1666)
:1666
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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
▲(16.03% 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 (1666) is a leading enterprise in the traditional Chinese medicine sector, primarily engaged in the research, development, production, and distribution of a wide range of Chinese herbal medicines and health products. The company operates in various sectors, including pharmaceuticals, healthcare, and wellness products, leveraging its rich heritage and expertise in traditional Chinese medicine to deliver high-quality products that cater to both domestic and international markets.
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
Neutral
Last Price4.74
Price Trends
50DMA
4.77
Negative
100DMA
4.96
Negative
200DMA
4.85
Negative
Market Momentum
MACD
-0.02
Positive
RSI
49.05
Neutral
STOCH
35.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1666, the sentiment is Neutral. The current price of 4.74 is below the 20-day moving average (MA) of 4.75, below the 50-day MA of 4.77, and below the 200-day MA of 4.85, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 35.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$6.66B7.4710.85%5.76%-20.64%-25.39%
68
Neutral
$5.97B12.845.98%4.15%0.73%-34.04%
66
Neutral
$7.32B14.2013.22%3.94%24.13%4.29%
57
Neutral
HK$9.86B51.806.73%23.37%
54
Neutral
$11.63B-40.67-1.26%3.35%-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
4.74
-0.15
-3.13%
HK:3613
Beijing Tong Ren Tang Chinese Medicine Co
9.04
1.08
13.54%
HK:0570
China Traditional Chinese Medicine Holdings Co
2.35
0.11
4.91%
HK:2256
Abbisko Cayman Limited
14.36
9.50
195.47%
HK:2877
China Shineway Pharmaceutical Group Limited
8.67
-0.56
-6.07%
HK:0723
Reliance Global Holdings Limited
0.20
-0.12
-37.50%

Tong Ren Tang Technologies Co Corporate Events

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.

Tong Ren Tang Technologies Co Renews Key Agreements with Tong Ren Tang Holdings
Sep 29, 2025

Tong Ren Tang Technologies Co, a joint stock company incorporated in China, has announced the renewal of its Distribution Framework Agreement and Master Procurement Agreement with Tong Ren Tang Holdings for a term of three years, from January 1, 2026, to December 31, 2028. These agreements, which involve continuing connected transactions, require independent shareholders’ approval due to the applicable percentage ratios exceeding 5%. An extraordinary general meeting will be convened to seek this approval, and an Independent Board Committee has been established to advise shareholders, with an independent financial adviser appointed to assist.

Tong Ren Tang Expands Market Reach with Cambodian License
Sep 26, 2025

Tong Ren Tang Technologies Co. Ltd. announced that its subsidiary, Beijing Tong Ren Tang Chinese Medicine Company Limited, has received a traditional medicine registration license from Cambodia’s Ministry of Health. This license allows the sale of ‘Tong Ren Tang Angong Niuhuang Wan’ in Cambodia, facilitating the expansion of the company’s distribution channels and market presence in the region. While this development is beneficial for market expansion, it is not expected to have a significant immediate impact on the company’s overall operations or performance.

Tong Ren Tang Technologies Reports Decline in Revenue and Profit for H1 2025
Aug 26, 2025

Tong Ren Tang Technologies Co. Ltd. reported a 7.69% decrease in revenue and a 21.01% decrease in profit attributable to owners for the first half of 2025 compared to the same period in 2024. The company also announced that it will not distribute an interim dividend for this period, reflecting a challenging market environment and potential impacts on stakeholder returns.

Tong Ren Tang Subsidiary Reports Strong Interim Results for 2025
Aug 22, 2025

Tong Ren Tang Technologies Co. Ltd. announced the interim financial results of its subsidiary, Tong Ren Tang Chinese Medicine, for the first half of 2025. The subsidiary reported a revenue increase to HK$761,736,000, up from HK$664,518,000 in the same period in 2024, with a profit for the period of HK$245,936,000. This financial performance highlights the company’s strong market position and potential growth in the traditional Chinese medicine sector.

Tong Ren Tang Technologies Announces Key Governance Changes Post-EGM
Aug 18, 2025

Tong Ren Tang Technologies Co. Ltd. announced the results of its extraordinary general meeting held on August 18, 2025, where all proposed resolutions were passed. Key decisions included the appointment of new executive directors, the abolition of the supervisory committee, and the approval of amendments to the company’s procedural rules. These changes are expected to streamline the company’s governance structure and enhance strategic planning, potentially impacting its operational efficiency and market positioning.

Tong Ren Tang Technologies Announces Board Composition and Committee Formation
Aug 18, 2025

Tong Ren Tang Technologies Co. Ltd. has announced the composition of its board of directors and the establishment of four special committees under the board. This organizational structure is likely to enhance the company’s governance and strategic planning, potentially impacting its market positioning and stakeholder relations positively.

Tong Ren Tang Technologies Updates Audit Committee Terms
Aug 18, 2025

Tong Ren Tang Technologies Co. Ltd. has announced amendments to the terms of reference for its Audit Committee, which were adopted by the Board on August 18, 2025. The changes emphasize the importance of having a majority of Independent Non-Executive Directors in the committee, including at least one member with professional qualifications in accounting or financial management. This move is expected to enhance the company’s compliance with the Hong Kong Stock Exchange’s Listing Rules, potentially strengthening its governance and transparency, which could positively impact stakeholders’ trust.

Tong Ren Tang Technologies Co. Elects New Employee Director Amid Governance Changes
Aug 15, 2025

Tong Ren Tang Technologies Co. Ltd. announced the election of Mr. Zhu Dong Sheng as an employee Director, following amendments to the Articles of Association to establish employee Directors. This change, pending approval at the upcoming extraordinary general meeting, reflects a shift in the company’s governance structure, potentially impacting its operational dynamics and stakeholder engagement.

Tong Ren Tang Technologies Announces Upcoming Board Meeting
Aug 14, 2025

Tong Ren Tang Technologies Co. Ltd. has announced a board meeting scheduled for August 26, 2025, to discuss and approve the unaudited consolidated interim results for the first half of the year. The meeting will also consider the payment of an interim dividend and other potential matters, which could impact the company’s financial performance and shareholder returns.

Tong Ren Tang Technologies Announces Key Governance Changes
Jul 28, 2025

Tong Ren Tang Technologies Co. Ltd. has announced an extraordinary general meeting scheduled for August 18, 2025, to discuss several key resolutions. These include the appointment of new executive directors, approval of remuneration for certain directors, and significant amendments to the company’s governance structure, such as the abolition of the supervisory committee and the introduction of Employee Directors. These changes are expected to impact the company’s governance and operational strategies.

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