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Modern Chinese Medicine Group Co. Ltd. (1643) AI Stock Analysis

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HK:1643

Modern Chinese Medicine Group Co. Ltd.

(HKEX:1643)

Select Model
Rating:45Neutral
Price Target:HKD 0.35â–¼(-10.13% Downside)
Action:reiterated
Date:11/07/26

The score is constrained primarily by deteriorating revenue and profitability, volatile and recently negative cash flow, and bearish technical positioning. The almost debt-free balance sheet provides meaningful resilience, but the negative P/E indicates that operational recovery is needed to improve the investment profile.

Positive Factors
Very Low LeverageNear-zero leverage gives the company substantial financial flexibility and low solvency risk. A strong equity-funded balance sheet can help preserve operating resilience, support investment in products and distribution, and reduce the burden of interest costs during periods of weaker profitability.
Negative Factors
Sustained Revenue DeclineThe sharp 2025 revenue contraction and longer decline from the 2022 peak indicate weakening commercial momentum rather than a single-quarter fluctuation. Persistent top-line pressure can reduce scale benefits, limit reinvestment capacity, and make recovery in earnings dependent on reversing demand or product-mix weakness.

Modern Chinese Medicine Group Co. Ltd. (1643) vs. iShares MSCI Hong Kong ETF (EWH)

-100%0%100%200%300%400%HK:1643-45.77%EWH+6.73%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
HKD 298.80M
Dividend Yield
―
Average Volume (3M)
417.22K
Price to Earnings (P/E)
-5.4
Beta (1Y)
0.60
Revenue Growth
2.06%
EPS Growth
-298.25%
Country
Hong Kong
Employees
189
Sector
Healthcare
Sector Strength
51
Industry
Medical - Pharmaceuticals

Modern Chinese Medicine Group Co. Ltd. Business Overview & Revenue Model

Company Description

As an investment holding company, Modern Chinese Medicine Group Co., Ltd. manufactures and distributes traditional Chinese pharmaceutical products, primarily targeting the middle-aged and elderly populations across the People's Republic of China. Its...

How the Company Makes Money

The company makes money mainly by selling traditional Chinese medicine products and related healthcare products through its distribution channels. Its revenue model is primarily product-driven: it generates revenue when it delivers finished TCM/propr...

Modern Chinese Medicine Group Co. Ltd. Financial Statement Overview

Summary

The nearly debt-free balance sheet is a significant strength, but sharply declining revenue, a move to losses, and recently negative free cash flow materially weaken overall financial performance.

Income Statement

30Negative

Balance Sheet

80Positive

Cash Flow

35Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue197.74M141.42M214.07M344.07M399.66M360.69M
Gross Profit27.30M22.73M55.20M104.17M170.79M158.43M
EBITDA-12.59M-4.63M33.10M74.75M130.03M117.02M
Net Income-41.67M-13.21M9.67M48.80M87.83M81.78M
Balance Sheet
Total Assets499.10M543.63M540.31M528.53M501.53M395.94M
Cash, Cash Equivalents and Short-Term Investments119.66M229.81M229.67M286.27M282.26M176.09M
Total Debt1.20M69.03K135.00K72.00K393.00K410.00K
Total Liabilities30.79M45.43M56.08M55.64M78.60M58.58M
Stockholders Equity468.31M498.20M484.23M472.89M422.93M337.36M
Cash Flow
Free Cash Flow-126.10M-16.58M-55.32M3.38M114.06M-12.87M
Operating Cash Flow-105.08M4.85M58.98M8.48M125.79M57.60M
Investing Cash Flow-84.87M-35.37M-115.49M-4.19M-11.05M-70.05M
Financing Cash Flow26.28M28.68M-144.00K-326.00K-8.73M115.76M

Modern Chinese Medicine Group Co. Ltd. Technical Analysis

Technical Analysis SentimentNegative
Last Price0.39

Price Trends

50DMA0.58Negative
100DMA0.77Negative
200DMA1.33Negative

Market Momentum

MACD-0.06Negative
RSI35.47Neutral
STOCH24.56Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1643, the sentiment is Negative. The current price of 0.39 is above the 20-day moving average (MA) of 0.36, below the 50-day MA of 0.58, and below the 200-day MA of 1.33, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 35.47 is Neutral, neither overbought nor oversold. The STOCH value of 24.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1643.

Modern Chinese Medicine Group Co. Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

HK:1643 against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
HK:0239HK:023986OutperformHKD 738.59M7.4113.59%7.81%10.63%39.44%
HK:0950HK:095068NeutralHKD 641.83M3.718.02%5.50%7.05%22.46%
HK:1666HK:166662NeutralHKD 3.80B10.774.19%6.95%-13.93%-25.30%
HK:0897HK:089759NeutralHKD 412.32M97.220.34%―-8.30%-44.44%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%
HK:1643HK:164345NeutralHKD 252.00M-5.43-8.62%―2.06%-298.25%
HK:1498HK:149841NeutralHKD 121.97M-4.01-21.66%―-6.71%43.14%

* Healthcare Sector Average

Performance Comparison

0%100%200%300%HK:1643HK:1666HK:0897HK:0950HK:1498HK:0239Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
HK:1643 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1643Modern Chinese Medicine Group Co. Ltd.0.39-0.33-46.53%
HK:1666Tong Ren Tang Technologies Co Class H2.98-1.61-35.13%
HK:0897Wai Yuen Tong Medicine Holdings Limited0.35-0.11-23.91%
HK:0950Lee's Pharmaceutical Holdings Limited1.05-0.69-39.62%
HK:1498PuraPharm Corp. Ltd.0.23-0.17-43.00%
HK:0239Pak Fah Yeow International Limited2.370.115.05%

Modern Chinese Medicine Group Co. Ltd. Corporate Events

Modern Chinese Medicine Group Ends VIE Structure After China Lifts TCM Manufacturing Curbs

Oct 21, 2026

Modern Chinese Medicine Group Co., Ltd. has announced the termination of its contractual arrangements structure used to control Chengde Yushi Jindan Pharmaceutical Co., Ltd. on the Chinese Mainland. This decision follows regulatory changes in the 202...

Modern Chinese Medicine Swings to Interim Loss Despite Surge in Revenue

Aug 28, 2026

Modern Chinese Medicine Group Co. Ltd. reported an 82.9% jump in revenue to RMB118.5 million for the six months ended 30 June 2026, with gross profit rising 36.4% to RMB22.1 million compared with a year earlier. Despite this top-line growth, the comp...

Modern Chinese Medicine Group Warns of Interim Loss Amid Expansion and R&D Push

Aug 21, 2026

Modern Chinese Medicine Group Co., Ltd. has issued a profit warning for the six months ended 30 June 2026, flagging an expected net loss of approximately RMB25.9 million versus a net profit of about RMB2.5 million a year earlier. The board attributes...

Modern Chinese Medicine Group Sets August Board Meeting for Interim Results and Dividend Review

Aug 13, 2026

Modern Chinese Medicine Group Co., Ltd. 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 board will also consider proposing an interim dividend, a decision...

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: Nov 06, 2026