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Modern Chinese Medicine Group Co. Ltd.
(1643)
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Rating:48Neutral
Price Target:
HK$0.39
â–¼(-24.31% Downside)
Action:Reiterated
Date:10/27/26
The score is held back primarily by sharply weakening fundamentals (revenue decline, margin compression, and losses) and weak technicals showing a persistent downtrend. The key offset is a strong balance sheet with minimal leverage, which reduces solvency risk, but valuation is not a clear positive due to negative earnings and no dividend data.
Positive Factors
Low Leverage
Extremely low leverage gives Modern Chinese Medicine Group substantial financial flexibility and limits solvency risk. A lightly indebted balance sheet can help the company withstand operating volatility, preserve funding capacity, and continue investing in its TCM product platform without heavy financing obligations.
Negative Factors
Revenue Contraction
The steep 2025 revenue decline and longer-term fall from the 2022 peak point to weakening demand, reduced distribution activity, or an unfavorable product mix. Persistent top-line contraction can erode scale, reduce operating leverage, and make a return to prior earnings levels more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage
Extremely low leverage gives Modern Chinese Medicine Group substantial financial flexibility and limits solvency risk. A lightly indebted balance sheet can help the company withstand operating volatility, preserve funding capacity, and continue investing in its TCM product platform without heavy financing obligations.
Read all positive factors
Modern Chinese Medicine Group Co. Ltd. (1643) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$237.60M
Dividend Yield2.98%
Average Volume (3M)415.36K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth2.06%
EPS Growth-298.25%
CountryHK
Employees189
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)-0.06
Shares Outstanding720,000,000
10 Day Avg. Volume502,500
30 Day Avg. Volume415,360
Financial Highlights & Ratios
PEG Ratio0.10
Price to Book (P/B)0.61
Price to Sales (P/S)2.14
P/FCF Ratio-18.24
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
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. ...
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/pr...
Modern Chinese Medicine Group Co. Ltd. Financial Statement Overview
Summary
Income Statement
33
Negative
Balance Sheet
86
Very Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 197.74M | 141.42M | 214.07M | 344.07M | 399.66M | 360.69M |
| Gross Profit | 27.30M | 22.73M | 55.20M | 104.17M | 170.79M | 158.43M |
| EBITDA | -12.59M | -4.63M | 33.10M | 74.75M | 130.03M | 117.02M |
| Net Income | -41.67M | -13.21M | 9.67M | 48.80M | 87.83M | 81.78M |
Balance Sheet | ||||||
| Total Assets | 499.10M | 543.63M | 540.31M | 528.53M | 501.53M | 395.94M |
| Cash, Cash Equivalents and Short-Term Investments | 119.66M | 229.81M | 229.67M | 286.27M | 282.26M | 176.09M |
| Total Debt | 1.20M | 69.03K | 135.00K | 72.00K | 393.00K | 410.00K |
| Total Liabilities | 30.79M | 45.43M | 56.08M | 55.64M | 78.60M | 58.58M |
| Stockholders Equity | 468.31M | 498.20M | 484.23M | 472.89M | 422.93M | 337.36M |
Cash Flow | ||||||
| Free Cash Flow | -126.10M | -16.58M | -55.32M | 3.38M | 114.06M | -12.87M |
| Operating Cash Flow | -105.08M | 4.85M | 58.98M | 8.48M | 125.79M | 57.60M |
| Investing Cash Flow | -84.87M | -35.37M | -115.49M | -4.19M | -11.05M | -70.05M |
| Financing Cash Flow | 26.28M | 28.68M | -144.00K | -326.00K | -8.73M | 115.76M |
Modern Chinese Medicine Group Co. Ltd. Technical Analysis
Negative
0.51
Price Trends
0.65
Negative
0.86
Negative
1.34
Negative
Market Momentum
-0.10
Negative
30.01
Neutral
47.65
Neutral
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 0.51 is above the 20-day moving average (MA) of 0.46, below the 50-day MA of 0.65, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 30.01 is Neutral, neither overbought nor oversold. The STOCH value of 47.65 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$774.43M | 7.77 | 13.59% | 7.44% | 10.63% | 39.44% | |
68 Neutral | HK$606.50M | 3.64 | 8.02% | 5.61% | 7.05% | 22.46% | |
64 Neutral | HK$3.82B | 10.78 | 4.19% | 6.93% | -13.93% | -25.30% | |
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% | |
48 Neutral | HK$237.60M | -4.64 | -8.62% | 2.98% | 2.06% | -298.25% | |
43 Neutral | HK$123.04M | -4.04 | -21.66% | 0.48% | -6.71% | 43.14% |
* Healthcare Sector Average
HK:1643
Modern Chinese Medicine Group Co. Ltd.
0.33
-0.38
-53.52%
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Tong Ren Tang Technologies Co
2.99
-1.44
-32.56%
HK:0897
Wai Yuen Tong Medicine Holdings Limited
0.36
-0.10
-21.74%
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Lee's Pharmaceutical Holdings Limited
1.03
-0.77
-42.94%
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PuraPharm Corp. Ltd.
0.23
-0.19
-45.24%
HK:0239
Pak Fah Yeow International Limited
2.49
0.25
11.09%
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 ...
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 c...
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 attribu...
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 decis...
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.