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Wai Yuen Tong Medicine Holdings Limited (0897) AI Stock Analysis

HK:0897

Wai Yuen Tong Medicine Holdings Limited

(HKEX:0897)

Select Model
Rating:56Neutral
Price Target:HKD 0.40â–²(10.28% Upside)
Action:reiterated
Date:09/18/26

The overall score reflects mixed but stable finances, with declining revenue and inconsistent operating profitability offset by solid margins, positive cash flow, and reduced leverage, while an expensive valuation and overbought technicals limit upside and add near-term risk.

Positive Factors
DeleveragingThe sharp reduction in debt materially lowers financial risk and interest-related pressure, giving Wai Yuen Tong greater flexibility to sustain operations and fund priorities. A much healthier capital structure also improves resilience if revenue remains under pressure over the next several quarters.
Negative Factors
Revenue ContractionPersistent revenue contraction points to a weakening scale base for the retail and distribution operations. Lower sales can reduce operating leverage, limit the company’s ability to spread fixed costs, and make it harder for margin improvements to translate into durable profit growth.

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

-40%-30%-20%-10%0%10%20%HK:0897-18.18%EWH+8.05%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 401.18M
Dividend Yield
―
Average Volume (3M)
588.03K
Price to Earnings (P/E)
100.0
Beta (1Y)
0.70
Revenue Growth
-8.30%
EPS Growth
-44.44%
Country
Hong Kong
Employees
691
Sector
Healthcare
Sector Strength
51
Industry
Drug Manufacturers - Specialty & Generic

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 phar...

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 branded...

Wai Yuen Tong Medicine Holdings Limited Financial Statement Overview

Summary

Revenue has declined for two consecutive years and operating profit remains negative, but healthy gross margins, positive cash generation, and a strengthening balance sheet support basic financial stability.

Income Statement

58Neutral

Balance Sheet

71Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue683.44M683.44M745.30M783.88M1.29B1.39B
Gross Profit361.93M361.93M376.45M394.81M609.54M574.15M
EBITDA68.00M67.05M122.72M140.21M128.45M156.19M
Net Income3.99M3.99M7.10M-15.36M-20.52M-108.91M
Balance Sheet
Total Assets1.63B1.63B1.74B2.10B7.01B7.60B
Cash, Cash Equivalents and Short-Term Investments147.44M147.44M146.55M196.78M625.01M683.74M
Total Debt279.29M279.29M435.41M560.07M1.76B1.80B
Total Liabilities446.01M446.01M555.68M709.65M3.33B3.64B
Stockholders Equity1.18B1.18B1.18B1.39B2.35B2.52B
Cash Flow
Free Cash Flow86.21M56.94M75.16M157.04M58.13M90.14M
Operating Cash Flow99.70M70.43M102.32M191.69M91.58M116.18M
Investing Cash Flow25.68M71.13M280.89M-84.62M15.06M-15.91M
Financing Cash Flow-124.49M-140.67M-405.69M-469.97M-67.25M-115.27M

Wai Yuen Tong Medicine Holdings Limited Technical Analysis

Technical Analysis SentimentPositive
Last Price0.36

Price Trends

50DMA0.35Positive
100DMA0.32Positive
200DMA0.33Positive

Market Momentum

MACD0.00Positive
RSI50.28Neutral
STOCH51.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0897, the sentiment is Positive. The current price of 0.36 is below the 20-day moving average (MA) of 0.37, above the 50-day MA of 0.35, and above the 200-day MA of 0.33, indicating a neutral trend. The MACD of 0.00 indicates Positive momentum. The RSI at 50.28 is Neutral, neither overbought nor oversold. The STOCH value of 51.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0897.

Wai Yuen Tong Medicine Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

HK:0897 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0239HK:023977OutperformHKD 774.43M7.7613.59%7.44%10.63%39.44%
HK:0950HK:095068NeutralHKD 606.50M3.648.02%5.61%7.05%22.46%
HK:6896HK:689664NeutralHKD 1.44B5.8016.70%17.44%-5.37%-18.03%
HK:0897HK:089756NeutralHKD 401.18M100.000.34%―-8.30%-44.44%
HK:0570HK:057053NeutralHKD 5.89B-4.80-4.98%0.30%-15.80%-298.94%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
HK:1498HK:149842NeutralHKD 123.04M-4.04-21.66%―-6.71%43.14%

* Healthcare Sector Average

Performance Comparison

-40%-20%0%HK:0897HK:0570HK:0950HK:1498HK:0239HK:6896Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:0897 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:0897Wai Yuen Tong Medicine Holdings Limited0.36-0.09-20.00%
HK:0570China Traditional Chinese Medicine Holdings Co 1.17-1.14-49.35%
HK:0950Lee's Pharmaceutical Holdings Limited1.03-0.73-41.41%
HK:1498PuraPharm Corp. Ltd.0.23-0.17-42.50%
HK:0239Pak Fah Yeow International Limited2.480.2511.09%
HK:6896Golden Throat Holdings Group Co Ltd1.95-1.16-37.32%

Wai Yuen Tong Medicine Holdings Limited Corporate Events

Wai Yuen Tong Wins Strong Shareholder Backing for Capital Flexibility at AGM

Aug 19, 2026

Shareholders of Wai Yuen Tong Medicine Holdings Limited have overwhelmingly approved all resolutions at the annual general meeting held on 19 August 2026 in Hong Kong. The meeting endorsed the audited financial statements for the year ended 31 March...

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 final...

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’ and auditor’s reports for the yea...

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’s legal...

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 inte...

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: Sep 18, 2026