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Wai Yuen Tong Medicine Holdings Limited
(0897)
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Rating:53Neutral
Price Target:
HK$0.38
â–²(4.44% Upside)
Action:Reiterated
Date:09/18/26
The score is anchored by improving financial stability (large debt reduction and positive operating/free cash flow) but held back by weak earnings quality (shrinking revenue, very thin margins, and negative operating profit). Technicals are supportive due to an uptrend above major moving averages, though overbought signals limit upside confidence. Valuation is a meaningful drag given the very high P/E and no provided dividend yield support.
Positive Factors
Deleveraging
Sharp debt reduction materially lowers financial risk and interest-related pressure while improving flexibility. A debt-to-equity ratio of about 0.24 gives the company more capacity to manage volatility, support operations, and allocate capital without relying as heavily on external financing.
Negative Factors
Sustained Revenue Contraction
Persistent revenue contraction signals weakening scale across the company’s retail and distribution activities. Continued top-line pressure can reduce operating leverage, limit reinvestment capacity, and make it harder for the improved gross margin to translate into durable earnings growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging
Sharp debt reduction materially lowers financial risk and interest-related pressure while improving flexibility. A debt-to-equity ratio of about 0.24 gives the company more capacity to manage volatility, support operations, and allocate capital without relying as heavily on external financing.
Read all positive factors
Wai Yuen Tong Medicine Holdings Limited (0897) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$417.89M
Dividend Yield84.69%
Average Volume (3M)731.97K
Price to Earnings (P/E)91.7
Beta (1Y)0.49
Revenue Growth-8.30%
EPS Growth-44.44%
CountryHK
Employees691
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)<0.01
Shares Outstanding1,114,382,900
10 Day Avg. Volume825,100
30 Day Avg. Volume731,972
Financial Highlights & Ratios
PEG Ratio-2.14
Price to Book (P/B)0.31
Price to Sales (P/S)0.54
P/FCF Ratio6.52
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)N/A
Revenue Forecast (FY)N/A
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
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 683.44M | 745.30M | 783.88M | 1.29B | 1.39B |
| Gross Profit | 361.93M | 376.45M | 394.81M | 609.54M | 574.15M |
| EBITDA | 67.05M | 122.72M | 116.33M | 115.88M | 156.19M |
| Net Income | 3.99M | 7.10M | -15.36M | -20.52M | -108.91M |
Balance Sheet | |||||
| Total Assets | 1.63B | 1.74B | 2.10B | 7.01B | 7.60B |
| Cash, Cash Equivalents and Short-Term Investments | 147.44M | 146.55M | 196.78M | 625.01M | 683.74M |
| Total Debt | 279.29M | 435.41M | 560.07M | 1.76B | 1.80B |
| Total Liabilities | 446.01M | 555.68M | 709.65M | 3.33B | 3.64B |
| Stockholders Equity | 1.18B | 1.18B | 1.39B | 2.35B | 2.52B |
Cash Flow | |||||
| Free Cash Flow | 56.94M | 75.16M | 157.04M | 58.13M | 90.14M |
| Operating Cash Flow | 70.43M | 102.32M | 191.69M | 91.58M | 116.18M |
| Investing Cash Flow | 71.13M | 280.89M | -84.62M | 15.06M | -15.91M |
| Financing Cash Flow | -140.67M | -405.69M | -469.97M | -67.25M | -115.27M |
Wai Yuen Tong Medicine Holdings Limited Technical Analysis
Neutral
0.36
Price Trends
0.32
Positive
0.32
Positive
0.34
Positive
Market Momentum
0.02
Positive
52.27
Neutral
86.11
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0897, the sentiment is Neutral. The current price of 0.36 is above the 20-day moving average (MA) of 0.35, above the 50-day MA of 0.32, and above the 200-day MA of 0.34, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.27 is Neutral, neither overbought nor oversold. The STOCH value of 86.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0897.
Wai Yuen Tong Medicine Holdings Limited Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$763.52M | 7.66 | 13.59% | 7.55% | 10.63% | 39.44% | |
68 Neutral | HK$688.94M | 4.09 | 8.02% | 5.00% | 7.05% | 22.46% | |
64 Neutral | HK$1.44B | 5.78 | 16.70% | 17.66% | -5.37% | -18.03% | |
53 Neutral | HK$417.89M | 91.67 | 0.34% | 84.69% | -8.30% | -44.44% | |
53 Neutral | HK$6.19B | -4.88 | -4.98% | 0.28% | -15.80% | -298.94% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
43 Neutral | HK$136.41M | -4.31 | -21.73% | 0.48% | -6.71% | 43.14% |
* Healthcare Sector Average
HK:0897
Wai Yuen Tong Medicine Holdings Limited
0.35
-0.12
-25.53%
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PuraPharm Corp. Ltd.
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Golden Throat Holdings Group Co Ltd
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-38.67%
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 Mar...
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’ and auditor’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’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...
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.