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China Traditional Chinese Medicine Holdings Co
(0570)
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Rating:53Neutral
Price Target:
HK$1.00
â–¼(-28.57% Downside)
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
The relatively conservative balance sheet gives the company financial flexibility during a period of weak profitability. Lower debt and substantial equity backing reduce refinancing pressure, preserve capacity to support operations, and provide a stronger base for recovery if earnings improve.
Negative Factors
Profitability deterioration
The shift from sustained earlier profits to near-break-even results and then a 2025 net loss is a material weakening in earnings quality. Continued losses would reduce internal funding capacity, weaken returns on shareholder capital, and make recovery dependent on reversing operating-cost or other below-gross-profit pressures.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
The relatively conservative balance sheet gives the company financial flexibility during a period of weak profitability. Lower debt and substantial equity backing reduce refinancing pressure, preserve capacity to support operations, and provide a stronger base for recovery if earnings improve.
Read all positive factors
China Traditional Chinese Medicine Holdings Co (0570) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$5.89B
Dividend Yield0.31%
Average Volume (3M)10.88M
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth-15.80%
EPS Growth-298.94%
CountryHK
Employees14,846
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-0.21
Shares Outstanding5,035,802,000
10 Day Avg. Volume6,714,847
30 Day Avg. Volume10,882,413
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...
How the Company Makes Money
The company primarily makes money by selling TCM products through a combination of wholesale/distribution channels and direct sales to healthcare providers and consumers, depending on the product and market. Key revenue streams typically include: ...
China Traditional Chinese Medicine Holdings Co Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
74
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.64B | 14.74B | 16.51B | 18.12B | 14.30B | 19.05B |
| Gross Profit | 6.00B | 7.09B | 7.86B | 9.27B | 7.20B | 11.83B |
| EBITDA | 1.21B | 1.61B | 1.88B | 2.56B | 2.16B | 3.59B |
| Net Income | -999.73M | -342.07M | 54.07M | 1.29B | 764.49M | 1.93B |
Balance Sheet | ||||||
| Total Assets | 29.86B | 32.36B | 35.06B | 37.07B | 35.62B | 36.39B |
| Cash, Cash Equivalents and Short-Term Investments | 4.56B | 5.16B | 5.34B | 3.69B | 3.46B | 4.14B |
| Total Debt | 1.34B | 2.49B | 4.02B | 5.16B | 5.04B | 5.06B |
| Total Liabilities | 7.67B | 8.94B | 11.13B | 13.13B | 12.67B | 13.73B |
| Stockholders Equity | 19.69B | 20.48B | 21.20B | 21.16B | 20.17B | 19.72B |
Cash Flow | ||||||
| Free Cash Flow | 1.45B | 1.96B | 2.07B | 680.20M | 565.09M | -81.17M |
| Operating Cash Flow | 1.71B | 2.28B | 2.58B | 1.17B | 1.09B | 796.03M |
| Investing Cash Flow | -201.26M | -172.80M | -379.24M | -477.62M | -374.15M | -536.94M |
| Financing Cash Flow | -2.66B | -2.04B | -1.39B | -584.31M | -557.28M | -724.32M |
China Traditional Chinese Medicine Holdings Co Technical Analysis
Negative
1.40
Price Trends
1.27
Negative
1.35
Negative
1.62
Negative
Market Momentum
-0.03
Positive
36.49
Neutral
45.65
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 1.20, above the 50-day MA of 1.27, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 36.49 is Neutral, neither overbought nor oversold. The STOCH value of 45.65 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$1.44B | 5.82 | 16.70% | 17.44% | -5.37% | -18.03% | |
58 Neutral | HK$15.30B | 13.45 | 6.61% | 3.92% | 7.35% | -45.49% | |
57 Neutral | HK$35.32B | 14.74 | 5.57% | 6.71% | 6.00% | -23.05% | |
56 Neutral | HK$8.28B | 37.23 | 4.32% | 3.22% | -0.52% | -37.60% | |
53 Neutral | HK$5.89B | -4.81 | -4.98% | 0.31% | -15.80% | -298.94% | |
53 Neutral | HK$401.18M | 100.00 | 0.34% | 84.69% | -8.30% | -44.44% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
HK:0570
China Traditional Chinese Medicine Holdings Co
1.17
-1.17
-50.00%
HK:0874
Guangzhou Baiyunshan Pharmaceutical Holdings Company
12.86
-4.81
-27.23%
HK:0897
Wai Yuen Tong Medicine Holdings Limited
0.36
-0.10
-21.74%
HK:0512
Grand Pharmaceutical Group Limited
4.31
-3.67
-46.01%
HK:6896
Golden Throat Holdings Group Co Ltd
1.95
-1.14
-36.95%
HK:0719
Shandong Xinhua Pharmaceutical Company Limited Class H
5.35
-1.40
-20.71%
China Traditional Chinese Medicine Holdings Co Corporate Events
China TCM Group Launches Connected Facility Upgrades in Mainland China
Sep 15, 2026
China Traditional Chinese Medicine Holdings Co. Limited has disclosed new connected transactions involving facility upgrades at two key subsidiaries in mainland China. The initiatives focus on renovating Shandong Yifang’s traditional Chinese...
China TCM Gains NMPA Approval for Innovative Depression Treatment
Sep 4, 2026
China Traditional Chinese Medicine Holdings Co. Limited, a Hong Kong-based pharmaceutical group specializing in traditional Chinese medicine, is expanding its portfolio of Chinese patent medicines through innovative products developed by its Sinop...
China TCM Sets Board Meeting to Approve 2026 Interim Results
Aug 18, 2026
China Traditional Chinese Medicine Holdings Co. Limited has scheduled a board meeting for 28 August 2026 to review and approve the interim financial results for the six months ended 30 June 2026. The company also plans to arrange for the publicati...
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.