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Wai Yuen Tong Medicine Holdings Limited (HK:0897)
:0897
Hong Kong Market
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Wai Yuen Tong Medicine Holdings Limited (0897) AI Stock Analysis

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HK:0897

Wai Yuen Tong Medicine Holdings Limited

(0897)

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Neutral 49 (OpenAI - Gpt-5.6Sol)
Rating:49Neutral
Price Target:
HK$0.31
â–¼(-14.44% Downside)
Action:Reiterated
Date:08/18/26
The score is held back primarily by weak income-statement quality (shrinking revenue, very thin margins, and negative operating profit) and an elevated P/E that looks difficult to justify with current earnings strength. Offsetting factors include meaningfully improved leverage and continued positive operating/free cash flow, while technicals are mixed with only short-term support and still-weak longer-term trend.
Positive Factors
Material deleveraging
Sharp debt reduction materially lowers financial risk, interest burden and refinancing needs. The stronger capital structure gives Wai Yuen Tong greater flexibility to sustain operations and invest in its retail and distribution platform.
Negative Factors
Persistent revenue contraction
Sustained revenue decline signals weakening demand, distribution reach or store productivity. Without renewed sales growth, fixed costs become harder to absorb and the company has less scope to expand earnings through operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Material deleveraging
Sharp debt reduction materially lowers financial risk, interest burden and refinancing needs. The stronger capital structure gives Wai Yuen Tong greater flexibility to sustain operations and invest in its retail and distribution platform.
Read all positive factors

Wai Yuen Tong Medicine Holdings Limited (0897) vs. iShares MSCI Hong Kong ETF (EWH)

Wai Yuen Tong Medicine Holdings Limited Business Overview & Revenue Model

Company Description
Wai Yuen Tong Medicine Holdings Limited operates as an investment holding company with a multifaceted business portfolio. Its core activities encompass the production, processing, and retail distribution of traditional Chinese medicines, Western p...
How the Company Makes Money
The company primarily makes money by selling products—especially traditional Chinese medicines and health-related consumer products—through its retail and distribution operations. Key revenue streams generally include (i) retail sales through bran...

Wai Yuen Tong Medicine Holdings Limited Financial Statement Overview

Summary
Balance sheet strength has improved materially due to sharp debt reduction and lower leverage, and 2026 operating/free cash flow remained positive. However, revenue has been contracting for several years and profitability is still very thin, with operating profit negative in 2026 despite modest net income.
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue683.44M745.30M783.88M1.29B1.39B
Gross Profit361.93M376.45M394.81M609.54M574.15M
EBITDA67.05M122.72M116.33M115.88M156.19M
Net Income3.99M7.10M-15.36M-20.52M-108.91M
Balance Sheet
Total Assets1.63B1.74B2.10B7.01B7.60B
Cash, Cash Equivalents and Short-Term Investments147.44M146.55M196.78M625.01M683.74M
Total Debt279.29M435.41M560.07M1.76B1.80B
Total Liabilities446.01M555.68M709.65M3.33B3.64B
Stockholders Equity1.18B1.18B1.39B2.35B2.52B
Cash Flow
Free Cash Flow56.94M75.16M157.04M58.13M90.14M
Operating Cash Flow70.43M102.32M191.69M91.58M116.18M
Investing Cash Flow71.13M280.89M-84.62M15.06M-15.91M
Financing Cash Flow-140.67M-405.69M-469.97M-67.25M-115.27M

Wai Yuen Tong Medicine Holdings Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.36
Price Trends
50DMA
0.30
Positive
100DMA
0.31
Negative
200DMA
0.34
Negative
Market Momentum
MACD
<0.01
Negative
RSI
49.94
Neutral
STOCH
24.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0897, the sentiment is Negative. The current price of 0.36 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.30, and above the 200-day MA of 0.34, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 24.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0897.

Wai Yuen Tong Medicine Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
HK$779.10M7.8113.59%7.40%10.63%39.44%
65
Neutral
HK$724.27M4.757.52%3.66%7.05%22.46%
64
Neutral
HK$1.68B6.8316.70%14.95%-5.37%-18.03%
53
Neutral
HK$6.77B-5.57-4.98%0.26%-15.80%-298.94%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
49
Neutral
HK$339.89M84.720.34%84.69%-8.30%-44.44%
43
Neutral
HK$144.43M-4.75-21.66%0.48%-6.71%43.14%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0897
Wai Yuen Tong Medicine Holdings Limited
0.31
-0.04
-12.86%
HK:0570
China Traditional Chinese Medicine Holdings Co
1.35
-0.83
-38.02%
HK:0950
Lee's Pharmaceutical Holdings Limited
1.23
-0.86
-41.15%
HK:1498
PuraPharm Corp. Ltd.
0.27
-0.17
-38.64%
HK:0239
Pak Fah Yeow International Limited
2.50
0.19
8.13%
HK:6896
Golden Throat Holdings Group Co Ltd
2.28
-0.91
-28.55%

Wai Yuen Tong Medicine Holdings Limited Corporate Events

Wai Yuen Tong Gains Listing Rule Waiver for Delayed Disposal Circular
Jul 31, 2026
Wai Yuen Tong Medicine Holdings Limited has announced a delay in sending a shareholder circular related to the disposal of its entire interest in Guanzun (Shenzhen) Trade Development Co., Ltd. The company required additional time to prepare and fi...
Wai Yuen Tong Sets 2026 AGM to Approve Financials and Share Issue Mandate
Jul 24, 2026
Wai Yuen Tong Medicine Holdings Limited has convened its annual general meeting for 19 August 2026 in Hong Kong, where shareholders will review the audited consolidated financial statements and directors&#8217; and auditor&#8217;s reports for the ...
Wai Yuen Tong Updates Registered Office Address in Bermuda
Jul 21, 2026
Wai Yuen Tong Medicine Holdings Limited announced that it will change the address of its registered office in Bermuda to Richmond House, 12 Par-la-Ville Road, Hamilton HM 08, with effect from 3 August 2026. The move updates the company&#8217;s leg...
Wang On, Wai Yuen Tong to Divest Property-Holding Unit in Major HK Transaction
Jul 16, 2026
Wang On Group and its subsidiary Wai Yuen Tong Medicine have agreed to sell the entire issued share capital of a property-holding target company for RMB99.8 million, or about HK$115.44 million. Upon completion, both groups will cease to hold any i...
Wai Yuen Tong Plans Major Share Premium Cut to Boost Dividend Flexibility
Jul 10, 2026
Wai Yuen Tong Medicine Holdings Limited, a Hong Kong-listed producer and distributor of traditional Chinese medicine and health supplements, operates under Bermuda law and serves the Greater China market. The company relies on its long-established...
Wai Yuen Tong Posts Lower Profit as Revenue Slides but Leverage Eases
Jun 25, 2026
Wai Yuen Tong Medicine Holdings reported a decline in revenue to HK$683.4 million for the year ended 31 March 2026, down 8.3% year on year, with gross profit slipping 3.9% to HK$361.9 million. Profit attributable to shareholders fell 43.7% to HK$4...
Wai Yuen Tong Schedules Board Meeting to Approve 2026 Annual Results and Dividend
Jun 11, 2026
Wai Yuen Tong Medicine Holdings has scheduled a board meeting for 25 June 2026 to review and approve the annual results for the year ended 31 March 2026. The board will also consider the payment of a final dividend, a decision that could influence...
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: Aug 18, 2026