SHSE:600085

Stock Analysis Report

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Executive Summary

Beijing Tongrentang Co., Ltd engages in the scientific research, production, sale, and distribution of Chinese medicines in China and internationally. More Details

Rewards

Earnings are forecast to grow 16.72% per year

Pays a high and reliable dividend of 2.12%

Risk Analysis

No risks detected for 600085 from our risk checks.


Snowflake Analysis

6 star dividend payer with excellent balance sheet.


Similar Companies

Share Price & News

How has Beijing Tongrentang's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600085 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 600085's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-3.2%

600085

-3.9%

CN Pharmaceuticals

-1.8%

CN Market


1 Year Return

-10.0%

600085

27.6%

CN Pharmaceuticals

26.2%

CN Market

Return vs Industry: 600085 underperformed the CN Pharmaceuticals industry which returned 27.6% over the past year.

Return vs Market: 600085 underperformed the CN Market which returned 26.2% over the past year.


Shareholder returns

600085IndustryMarket
7 Day-3.2%-3.9%-1.8%
30 Day-2.4%-0.04%5.3%
90 Day-10.7%-3.8%6.1%
1 Year-9.1%-10.0%28.9%27.6%28.3%26.2%
3 Year-24.3%-27.8%30.1%25.3%24.3%18.2%
5 Year-11.3%-16.6%57.9%49.5%42.9%33.2%

Long-Term Price Volatility Vs. Market

How volatile is Beijing Tongrentang's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Beijing Tongrentang undervalued compared to its fair value and its price relative to the market?

39.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 600085 (CN¥24.5) is trading above our estimate of fair value (CN¥22.97)

Significantly Below Fair Value: 600085 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 600085 is poor value based on its PE Ratio (39.5x) compared to the CN Pharmaceuticals industry average (30.9x).

PE vs Market: 600085 is poor value based on its PE Ratio (39.5x) compared to the CN market (34.5x).


Price to Earnings Growth Ratio

PEG Ratio: 600085 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 600085 is overvalued based on its PB Ratio (3.5x) compared to the CN Pharmaceuticals industry average (2.7x).


Next Steps

Future Growth

How is Beijing Tongrentang forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600085's forecast earnings growth (16.7% per year) is above the savings rate (3.3%).

Earnings vs Market: 600085's earnings (16.7% per year) are forecast to grow slower than the CN market (24.1% per year).

High Growth Earnings: 600085's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600085's revenue (11.4% per year) is forecast to grow slower than the CN market (18.1% per year).

High Growth Revenue: 600085's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600085's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Beijing Tongrentang performed over the past 5 years?

1.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600085 has high quality earnings.

Growing Profit Margin: 600085's current net profit margins (6.9%) are lower than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: 600085's earnings have grown by 1.6% per year over the past 5 years.

Accelerating Growth: 600085's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 600085 had negative earnings growth (-25%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (10.5%).


Return on Equity

High ROE: 600085's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Beijing Tongrentang's financial position?


Financial Position Analysis

Short Term Liabilities: 600085's short term assets (CN¥16.8B) exceed its short term liabilities (CN¥6.2B).

Long Term Liabilities: 600085's short term assets (CN¥16.8B) exceed its long term liabilities (CN¥671.3M).


Debt to Equity History and Analysis

Debt Level: 600085's debt to equity ratio (11.5%) is considered satisfactory.

Reducing Debt: 600085's debt to equity ratio has increased from 2.5% to 11.5% over the past 5 years.

Debt Coverage: 600085's debt is well covered by operating cash flow (126.6%).

Interest Coverage: 600085 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Beijing Tongrentang current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 600085's dividend (2.12%) is higher than the bottom 25% of dividend payers in the CN market (0.41%).

High Dividend: 600085's dividend (2.12%) is in the top 25% of dividend payers in the CN market (1.83%)


Stability and Growth of Payments

Stable Dividend: 600085's dividends per share have been stable in the past 10 years.

Growing Dividend: 600085's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.9%), 600085's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600085's dividends in 3 years are forecast to be well covered by earnings (38.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?


CEO

Shubing Yan (45 yo)

no data

Tenure

Mr. Yan Shubing serves as General Manager at Beijing Tongrentang Co., Ltd.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Beijing Tongrentang Co., Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beijing Tongrentang Co., Ltd
  • Ticker: 600085
  • Exchange: SHSE
  • Founded: 1669
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CN¥33.601b
  • Shares outstanding: 1.37b
  • Website: https://www.tongrentanggf.com

Number of Employees


Location

  • Beijing Tongrentang Co., Ltd
  • No. 42 Chongwenmenwai Street
  • Dongcheng District
  • Beijing
  • 100062
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600085SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYJun 1999
600085XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYJun 1999

Biography

Beijing Tongrentang Co., Ltd engages in the scientific research, production, sale, and distribution of Chinese medicines in China and internationally. It covers 28 product formulations, such as pills, powd...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 09:30
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.