Beijing Tong Ren Tang Chinese Medicine Co (3613) AI Stock Analysis

• Market Cap: HK$7.31B
• Dividend Yield: 4.04%
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.76
• Revenue Growth: 24.13%
• EPS Growth: 4.29%
• Country: HK
• Employees: 782
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): 0.28
• Shares Outstanding: 837,100,000
• 10 Day Avg. Volume: 975,850
• 30 Day Avg. Volume: 1,095,238
• PEG Ratio: -1.91
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 4.56
• P/FCF Ratio: -28.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$9.50 ▲(10.34% Upside)

The overall stock score of 66 reflects strong financial performance, particularly in terms of balance sheet strength and profitability, which is the most significant factor. However, technical analysis indicates bearish momentum, which weighs down the score. The valuation is fair, with a reasonable P/E ratio and attractive dividend yield, providing some support to the overall score.

Positive Factors

Revenue Growth

The company's consistent revenue growth highlights its strong market position and ability to expand its customer base, crucial for long-term success.

Balance Sheet Health

A strong balance sheet with low debt levels provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Profitability Metrics

Strong profitability metrics suggest effective cost management and operational efficiency, supporting sustainable long-term growth.

Negative Factors

Cash Flow Volatility

Volatile cash flow and lack of recent data can hinder financial planning and investment, potentially impacting operational funding.

Net Profit Margin Decline

A decline in net profit margin may indicate rising costs or inefficiencies, which could affect profitability if not addressed.

Absence of Cash Flow Data

Lack of current cash flow data limits visibility into liquidity and operational health, crucial for assessing financial stability.

Beijing Tong Ren Tang Chinese Medicine Co Business Overview & Revenue Model

Company Description

Beijing Tong Ren Tang Chinese Medicine Company Limited, together with its subsidiaries, engages in the manufacture, retail, and wholesale of Chinese medicine and healthcare products to wholesalers and individuals. The company operates through three segments: Hong Kong, Mainland China, and Overseas. It also offers Chinese medical consultation and treatment services. The company operates 23 retail outlets in Hong Kong and 46 retail outlets in other countries and regions in Asia, Oceania, North America, and Europe. It markets its products under the Tong Ren Tang brand. The company was founded in 1669 and is based in Wan Chai, Hong Kong.

How the Company Makes Money

Beijing Tong Ren Tang generates revenue primarily through the sale of its traditional Chinese medicine products, which include herbal remedies, dietary supplements, and wellness products. Key revenue streams include direct sales from retail outlets, online sales through e-commerce platforms, and exports to international markets. The company also benefits from strategic partnerships with healthcare institutions and wellness centers, enhancing its distribution channels. Additionally, Tong Ren Tang invests in research and development to innovate and expand its product offerings, which contributes to its market competitiveness and financial growth.

Beijing Tong Ren Tang Chinese Medicine Co Financial Statement Overview

Summary

Beijing Tong Ren Tang Chinese Medicine Co demonstrates strong financial health with consistent revenue growth and solid profitability metrics. The balance sheet is particularly robust, with low debt levels and high equity, providing a cushion against financial instability. However, the recent absence of cash flow data poses a potential risk, requiring attention to ensure ongoing liquidity and operational funding.

Income Statement

Beijing Tong Ren Tang Chinese Medicine Co has shown consistent revenue growth over recent years, with a slight dip in 2024. The gross profit and EBIT margins are strong, indicating efficient operations and cost management. However, the net profit margin decreased slightly, reflecting potential challenges in controlling non-operating expenses or taxes.

Balance Sheet

The company maintains a robust balance sheet with a high equity ratio, indicating financial stability and low leverage risk. The debt-to-equity ratio is very low, suggesting prudent financial management. High stockholders' equity relative to total assets reflects a strong capital position.

Cash Flow

The company's free cash flow has been positive but shows volatility, with no data available for 2024. The high operating cash flow relative to net income in prior years indicates strong cash generation from operations, but the lack of recent data prevents a comprehensive assessment of current cash flow health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.61B	1.52B	1.73B	1.56B	1.32B
Gross Profit	1.08B	1.07B	1.05B	1.15B	1.12B	952.90M
EBITDA	598.78M	722.32M	779.54M	907.63M	852.81M	769.14M
Net Income	515.36M	500.28M	540.39M	645.88M	607.84M	542.46M
Balance Sheet
Total Assets	4.53B	4.56B	4.43B	4.23B	3.83B	3.42B
Cash, Cash Equivalents and Short-Term Investments	2.01B	1.82B	2.38B	2.24B	2.28B	1.85B
Total Debt	142.71M	123.42M	131.81M	103.08M	128.48M	106.01M
Total Liabilities	312.26M	313.09M	413.75M	486.49M	295.48M	287.46M
Stockholders Equity	4.03B	4.08B	3.87B	3.60B	3.42B	3.02B
Cash Flow
Free Cash Flow	518.75M	-260.42M	438.96M	508.94M	753.74M	103.17M
Operating Cash Flow	567.10M	-217.25M	460.83M	547.44M	777.17M	116.05M
Investing Cash Flow	-153.66M	1.35B	-1.08B	335.41M	-265.73M	506.73M
Financing Cash Flow	-335.60M	-355.30M	-372.18M	-535.42M	-278.65M	-264.30M

Beijing Tong Ren Tang Chinese Medicine Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3613, the sentiment is Neutral. The current price of 8.61 is above the 20-day moving average (MA) of 8.58, below the 50-day MA of 8.80, and below the 200-day MA of 8.78, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 54.17 is Neutral, neither overbought nor oversold. The STOCH value of 84.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:3613.

Beijing Tong Ren Tang Chinese Medicine Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6896	75 Outperform	HK$2.28B	7.85	21.47%	15.97%	-2.70%	2.19%
2877	73 Outperform	HK$7.07B	7.93	10.85%	5.80%	-20.64%	-25.39%
1666	68 Neutral	HK$5.76B	12.40	5.98%	4.47%	0.73%	-34.04%
3613	66 Neutral	HK$7.31B	14.18	13.22%	4.04%	24.13%	4.29%
0570	54 Neutral	HK$11.08B	-38.38	-1.26%	3.66%	-9.58%	-128.83%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
2616	42 Neutral	HK$9.11B	-20.28	-95.84%	―	-55.64%	-158.67%

Beijing Tong Ren Tang Chinese Medicine Co Corporate Events

Beijing Tong Ren Tang Chinese Medicine Renews Three-Year Master Lease Deal With Controlling Shareholder

Beijing Tong Ren Tang Chinese Medicine Company Limited has signed a renewed master lease framework agreement with its controlling shareholder, Tong Ren Tang Holdings, to secure the continued leasing of premises used for production and operations from 1 January 2026 to 31 December 2028. The arrangement, which allows group entities to amend or renew existing leases for offices, warehouses and staff quarters within agreed annual caps, is classified as a continuing connected transaction and an asset acquisition under Hong Kong listing rules and HKFRS 16, triggering reporting, announcement and annual review requirements but exempting it from independent shareholders’ approval; this framework helps provide operational stability while underscoring the company’s reliance on related-party property arrangements.

The most recent analyst rating on (HK:3613) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on Beijing Tong Ren Tang Chinese Medicine Co stock, see the HK:3613 Stock Forecast page.

Beijing Tong Ren Tang Chinese Medicine Renews PRC Distribution Deal With Controlling Shareholder

Beijing Tong Ren Tang Chinese Medicine has agreed to renew its PRC distribution framework agreement with its controlling shareholder, Tong Ren Tang Holdings, for a further three-year term from 1 January 2026 to 31 December 2028, ensuring continuity of its mainland China distribution arrangements. Under the renewed non-exclusive framework, the Tong Ren Tang Group may continue to purchase products from the listed company for distribution or production use in China, with pricing set by reference to prevailing market levels and benchmarked regularly against transactions with at least two independent third parties to ensure terms are no more favorable than those offered to outsiders; because the deal constitutes a continuing connected transaction with annual caps exceeding key thresholds, it will require independent shareholders’ approval, an independent financial adviser’s opinion and standard disclosure and review processes, underscoring governance scrutiny around related-party dealings.

The most recent analyst rating on (HK:3613) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on Beijing Tong Ren Tang Chinese Medicine Co stock, see the HK:3613 Stock Forecast page.

Beijing Tong Ren Tang Signs New Trademark Licence Agreement

Beijing Tong Ren Tang Chinese Medicine Co has announced the termination of its Current Trademark Licence Agreement with Tong Ren Tang Holdings, effective from December 31, 2025. A new agreement, the New Trademark Licence Framework Agreement, has been signed, allowing the company to use the ‘Tong Ren Tang’ tradename and certain trademarks from January 1, 2026, to December 31, 2027. This agreement is categorized as a continuing connected transaction under Hong Kong’s Listing Rules, requiring reporting and annual review but exempt from independent shareholder approval. The new licensing terms include a fee structure based on the company’s operating revenue, potentially impacting its financial obligations and market operations.

The most recent analyst rating on (HK:3613) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on Beijing Tong Ren Tang Chinese Medicine Co stock, see the HK:3613 Stock Forecast page.

Beijing Tong Ren Tang Announces Q3 2025 Financial Results

Beijing Tong Ren Tang Chinese Medicine Company Limited announced the unaudited financial results of its controlling shareholder, Tong Ren Tang Technologies Co. Ltd., for the nine months ending September 30, 2025. This disclosure is part of regulatory requirements and reflects the company’s transparency in financial reporting. The announcement may impact investor decisions and market perception, given the company’s significant role in the traditional Chinese medicine sector.

The most recent analyst rating on (HK:3613) stock is a Hold with a HK$9.50 price target. To see the full list of analyst forecasts on Beijing Tong Ren Tang Chinese Medicine Co stock, see the HK:3613 Stock Forecast page.