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Tong Ren Tang Technologies Co (1666) AI Stock Analysis

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HK:1666

Tong Ren Tang Technologies Co

(HKEX:1666)

Select Model
Rating:64Neutral
Price Target:HKD 3.00â–²(0.50% Upside)
Action:reiterated
Date:08/06/26

The score is primarily driven by mixed financial performance: a solid balance sheet and a sharp 2025 cash-flow rebound are tempered by weakening 2025 revenue and profitability and cash-flow volatility. Valuation is a key positive (low P/E and high dividend yield), while technicals are neutral-to-soft with price below longer-term moving averages.

Positive Factors
Moderate leverageModerate and improving leverage reduces balance-sheet strain and preserves financial flexibility. Steady equity growth provides a stronger capital base for operating needs, investment, and shareholder distributions, helping the company remain more resilient through normal earnings volatility.
Negative Factors
Revenue contractionThe shift from several years of growth to a 9.1% revenue decline signals weakening demand, channel performance, or product momentum. If the contraction persists, reduced scale would limit operating leverage, constrain reinvestment capacity, and make recovery in earnings more difficult.

Tong Ren Tang Technologies Co (1666) vs. iShares MSCI Hong Kong ETF (EWH)

-40%-30%-20%-10%0%10%20%HK:1666-31.99%EWH+7.37%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
HKD 511.29M
Dividend Yield
6.93%
Average Volume (3M)
1.42M
Price to Earnings (P/E)
10.8
Beta (1Y)
0.61
Revenue Growth
-13.93%
EPS Growth
-25.30%
Country
Hong Kong
Employees
3,801
Sector
Healthcare
Sector Strength
51
Industry
Drug Manufacturers - General

Tong Ren Tang Technologies Co Business Overview & Revenue Model

Company Description

Tong Ren Tang Technologies Co. Ltd., a company founded in 1669 and based in Beijing, People's Republic of China, maintains extensive operations across Mainland China and Hong Kong. Its primary activities center on the manufacturing and sale of tradit...

How the Company Makes Money

The company makes money primarily by selling traditional Chinese medicine and related healthcare products. Its core revenue stream is product sales, which typically include (1) manufactured TCM pharmaceutical products (e.g., proprietary Chinese medic...

Tong Ren Tang Technologies Co Financial Statement Overview

Summary

Financials are mixed. Income statement trends weakened in 2025 with revenue down (-9.1%), margin compression, and lower net income, which weighs on the score. Offsetting this, the balance sheet looks relatively solid with moderate and improving leverage (debt-to-equity ~0.30) and growing equity. Cash flow rebounded strongly in 2025 (OCF ~1.56bn; FCF ~1.45bn) but remains volatile after a very weak 2024, limiting confidence.

Income Statement

58Neutral

Balance Sheet

74Positive

Cash Flow

55Neutral
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue5.77B6.48B7.26B6.77B5.99B5.40B
Gross Profit2.13B2.47B2.88B2.85B2.59B2.29B
EBITDA991.37M1.14B1.27B1.39B1.47B1.33B
Net Income306.75M396.28M521.79M590.19M582.89M507.25M
Balance Sheet
Total Assets13.35B13.72B14.41B13.51B12.48B11.59B
Cash, Cash Equivalents and Short-Term Investments5.00B4.84B4.38B4.24B4.18B3.89B
Total Debt1.91B2.17B2.43B1.63B1.59B1.64B
Total Liabilities3.30B3.34B4.24B3.86B3.47B3.44B
Stockholders Equity7.30B7.34B7.21B6.89B6.48B5.98B
Cash Flow
Free Cash Flow1.15B1.45B-158.56M450.78M565.85M877.01M
Operating Cash Flow1.25B1.56B15.61M554.17M723.77M1.03B
Investing Cash Flow-11.46M50.30M1.05B-1.07B43.01M-197.36M
Financing Cash Flow-1.15B-1.01B288.35M-497.76M-499.45M-474.67M

Tong Ren Tang Technologies Co Technical Analysis

Technical Analysis SentimentNegative
Last Price2.98

Price Trends

50DMA3.11Negative
100DMA3.24Negative
200DMA3.54Negative

Market Momentum

MACD-0.04Positive
RSI43.03Neutral
STOCH23.07Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1666, the sentiment is Negative. The current price of 2.98 is below the 20-day moving average (MA) of 3.04, below the 50-day MA of 3.11, and below the 200-day MA of 3.54, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 23.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1666.

Tong Ren Tang Technologies Co Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

HK:1666 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:3613HK:361372OutperformHKD 4.73B10.2311.15%6.55%-20.79%-30.04%
HK:1093HK:109365NeutralHKD 90.26B10.2720.68%4.20%25.21%103.93%
HK:1666HK:166664NeutralHKD 3.82B10.784.19%6.93%-13.93%-25.30%
HK:0897HK:089759NeutralHKD 401.18M100.000.34%―-8.30%-44.44%
HK:0570HK:057053NeutralHKD 5.89B-4.81-4.98%0.30%-15.80%-298.94%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%

* Healthcare Sector Average

Performance Comparison

-40%-20%0%20%HK:1666HK:3613HK:0570HK:1093HK:0897HK:0239Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
HK:1666 and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
HK:1666Tong Ren Tang Technologies Co Class H2.98-1.44-32.56%
HK:3613Beijing Tong Ren Tang Chinese Medicine Co 5.65-2.58-31.38%
HK:0570China Traditional Chinese Medicine Holdings Co 1.17-1.16-49.79%
HK:1093CSPC Pharmaceutical Group 7.870.506.75%
HK:0897Wai Yuen Tong Medicine Holdings Limited0.36-0.10-21.74%
HK:0239Pak Fah Yeow International Limited2.480.2511.09%

Tong Ren Tang Technologies Co Corporate Events

Tong Ren Tang Technologies Posts RMB3.76 Billion Revenue in First Nine Months of 2026

Oct 30, 2026

Tong Ren Tang Technologies Co. Ltd. reported unaudited operating revenue of about RMB3,759.55 million and operating costs of roughly RMB2,337.57 million for the nine months ended 30 September 2026, resulting in net profit attributable to shareholders...

Tong Ren Tang Technologies Wins Macao Approval for Six Proprietary Chinese Medicines

Oct 14, 2026

Tong Ren Tang Technologies’ Macao subsidiary, Beijing Tong Ren Tang (Macau) Company Limited, has received Certificates of Registration for six proprietary Chinese medicines from the Chinese Medicine Council of Macao. The approvals cover Shilint...

Tong Ren Tang Technologies Wins Hong Kong Approval for New Chinese Medicine

Oct 8, 2026

Tong Ren Tang Technologies has announced that its subsidiary, Beijing Tong Ren Tang Chinese Medicine, has received a Certificate of Registration of Proprietary Chinese Medicine in Hong Kong for its product Dingzhi Wan 【Tong Ren Tang】. T...

Tong Ren Tang Technologies’ First-Half Profit Drops as Revenue Slides, Interim Dividend Scrapped

Aug 28, 2026

Tong Ren Tang Technologies reported a sharp decline in interim results for the six months ended 30 June 2026, with revenue falling 19.10% year on year to RMB3.02 billion and gross profit dropping accordingly. Profit attributable to shareholders sank...

Tong Ren Tang Technologies Signs New E-Commerce Deal With Connected Affiliate

Aug 28, 2026

Tong Ren Tang Technologies Co has signed a new e-commerce service cooperation framework agreement with affiliated company Tong Ren Tang Shuzi Technology, effective from 28 August 2026 to 31 December 2028. The deal aims to support the promotion and sa...

Tong Ren Tang Technologies Wins Hong Kong Approval for New Chinese Medicine

Aug 28, 2026

Tong Ren Tang Technologies Co. Ltd. announced that its Hong Kong subsidiary, Beijing Tong Ren Tang Chinese Medicine, has received a Certificate of Registration of Proprietary Chinese Medicine from the Chinese Medicine Council of Hong Kong. The approv...

Tong Ren Tang Technologies Sets Board Meeting to Review 2026 Interim Results

Aug 14, 2026

Tong Ren Tang Technologies Co. Ltd. has scheduled a board meeting for 28 August 2026 to review and approve the unaudited consolidated interim results for the six months ended 30 June 2026. The board will also consider the potential declaration of an...

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 06, 2026