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China Traditional Chinese Medicine Holdings Co
(0570)
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Rating:53Neutral
Price Target:
HK$1.50
â–˛(7.14% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by deteriorating fundamentals (profitability falling to a 2025 net loss and softer revenue trends), despite support from a conservative balance sheet and strong recent operating/free cash flow. Technicals remain weak on a longer-term basis (price below 100/200-day averages with slightly negative MACD), while valuation is helped by the very high dividend yield but constrained by negative earnings (negative P/E).
Positive Factors
Conservative balance sheet
Low leverage and falling total debt into 2024–2025 give the company durable financial flexibility. A conservative balance sheet reduces refinancing risk during downturns, supports capital allocation choices, and provides a buffer that helps sustain operations while earnings recover.
Negative Factors
Earnings deterioration to net loss (2025)
A shift to a net loss erodes retained earnings and reduces the firm's ability to reinvest and compound capital. Persistent losses can force cost cutting, dividend reductions, or external financing, weakening long-term growth prospects until profitability is sustainably restored.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and falling total debt into 2024–2025 give the company durable financial flexibility. A conservative balance sheet reduces refinancing risk during downturns, supports capital allocation choices, and provides a buffer that helps sustain operations while earnings recover.
Read all positive factors
China Traditional Chinese Medicine Holdings Co (0570) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$6.72B
Dividend Yield0.26%
Average Volume (3M)7.68M
Price to Earnings (P/E)―
Beta (1Y)0.38
Revenue Growth-15.80%
EPS Growth-298.94%
CountryHK
Employees14,846
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.07
Shares Outstanding5,035,802,000
10 Day Avg. Volume7,227,470
30 Day Avg. Volume7,682,892
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)0.46
Price to Sales (P/S)0.64
P/FCF Ratio4.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.09
Revenue Forecast (FY)HK$12.98B
China Traditional Chinese Medicine Holdings Co Business Overview & Revenue Model
Company Description
China Traditional Chinese Medicine Holdings Co. Limited functions as an investment holding company, primarily focusing on the research, development, and sale of traditional Chinese medicine and other pharmaceutical goods across the People's Republ...
China Traditional Chinese Medicine Holdings Co Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.74B | 16.51B | 18.12B | 14.30B | 19.05B |
| Gross Profit | 7.09B | 7.86B | 9.27B | 7.20B | 11.83B |
| EBITDA | 1.52B | 1.82B | 2.56B | 2.16B | 3.59B |
| Net Income | -342.07M | 54.07M | 1.29B | 764.49M | 1.93B |
Balance Sheet | |||||
| Total Assets | 32.36B | 35.06B | 37.07B | 35.62B | 36.39B |
| Cash, Cash Equivalents and Short-Term Investments | 5.16B | 5.34B | 3.69B | 3.46B | 4.14B |
| Total Debt | 2.49B | 4.02B | 5.16B | 5.04B | 5.06B |
| Total Liabilities | 8.94B | 11.13B | 13.13B | 12.67B | 13.73B |
| Stockholders Equity | 20.48B | 21.20B | 21.16B | 20.17B | 19.72B |
Cash Flow | |||||
| Free Cash Flow | 1.96B | 2.07B | 680.20M | 565.09M | -81.17M |
| Operating Cash Flow | 2.28B | 2.58B | 1.17B | 1.09B | 796.03M |
| Investing Cash Flow | -172.80M | -379.24M | -477.62M | -374.15M | -536.94M |
| Financing Cash Flow | -2.04B | -1.39B | -584.31M | -557.28M | -724.32M |
China Traditional Chinese Medicine Holdings Co Technical Analysis
Negative
1.40
Price Trends
1.41
Negative
1.50
Negative
1.79
Negative
Market Momentum
-0.02
Positive
35.73
Neutral
20.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0570, the sentiment is Negative. The current price of 1.4 is above the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.41, and below the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 35.73 is Neutral, neither overbought nor oversold. The STOCH value of 20.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0570.
China Traditional Chinese Medicine Holdings Co Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | HK$1.62B | 6.62 | 16.70% | 15.45% | -5.37% | -18.03% | |
60 Neutral | HK$17.36B | 15.44 | 6.61% | 3.41% | 7.35% | -45.49% | |
59 Neutral | HK$36.08B | 12.84 | 6.64% | 6.27% | 6.58% | -4.29% | |
53 Neutral | HK$6.72B | -5.53 | -4.98% | 0.26% | -15.80% | -298.94% | |
52 Neutral | HK$8.80B | 43.66 | 4.10% | 3.03% | 4.81% | -48.21% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | HK$339.89M | 86.11 | 0.34% | 84.69% | -8.30% | -44.44% |
* Healthcare Sector Average
HK:0570
China Traditional Chinese Medicine Holdings Co
1.31
-0.85
-39.35%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
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Wai Yuen Tong Medicine Holdings Limited
0.31
-0.05
-13.89%
HK:0512
Grand Pharmaceutical Group Limited
5.00
-3.97
-44.31%
HK:6896
Golden Throat Holdings Group Co Ltd
2.14
-1.03
-32.41%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
5.66
-1.63
-22.37%
China Traditional Chinese Medicine Holdings Co Corporate Events
China TCM Holdings Announces Chairman’s Retirement and New Executive Director
Jul 17, 2026
China Traditional Chinese Medicine Holdings announced that chairman and executive director Yang Jun has resigned from the board with immediate effect after reaching statutory retirement age, stepping down from his roles leading the nomination and ...
China TCM Holdings Details Board and Committee Structure
Jul 17, 2026
China Traditional Chinese Medicine Holdings Co. Limited has announced the current composition of its board of directors, detailing executive, non-executive and independent non-executive members and their respective leadership roles. The disclosure...
China TCM Holdings Flags Sharp Interim Loss Amid Policy-Driven Downturn
Jul 17, 2026
China Traditional Chinese Medicine Holdings Co. Limited has warned that it expects a sharply higher interim loss of approximately RMB800 million to RMB850 million for the six months ended 30 June 2026, compared with a loss of about RMB141.76 milli...
China Traditional Chinese Medicine shareholders back all AGM resolutions
Jun 26, 2026
China Traditional Chinese Medicine Holdings Co. said shareholders approved all resolutions at its annual general meeting held on 26 June 2026, with voting conducted by poll over the company’s more than 5 billion issued shares. The meeting wa...
China TCM Sets June 2026 AGM to Vote on Board and Auditor Reappointment
May 29, 2026
China Traditional Chinese Medicine Holdings Co. Limited has convened its annual general meeting for 26 June 2026 in Foshan, Guangdong, where shareholders will review the audited financial statements and reports for the year ended 31 December 2025....
China TCM announces board reshuffle with new non-executive director
May 15, 2026
China Traditional Chinese Medicine Holdings Co. announced a board change, with non-executive director Liu Haijian resigning due to a change in work arrangements and stepping down from the remuneration and evaluation committee. Liu stated he has no...
China TCM Holdings Details Board and Committee Line-up
May 15, 2026
China Traditional Chinese Medicine Holdings Co. Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors, reflecting a diversified governance structure aligne...
China TCM Wins NMPA Approval to Market Two Classic Formula Granule Drugs
May 11, 2026
China Traditional Chinese Medicine Holdings Co. Limited announced that two of its traditional Chinese medicine compound preparations, Shaoyao Gancao Tang Granules and Taohe Chengqi Tang Granules, have received drug approval licenses from ChinaR...
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.