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1666

Tong Ren Tang TechnologiesSEHK:1666 Stock Report

Market Cap

HK$7.3b

7D

0.4%

1Y

12.6%

Updated

23 Oct, 2021

Data

Company Financials +
1666 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends4/6

1666 Overview

Tong Ren Tang Technologies Co. Ltd. manufactures and sells Chinese medicine products in Mainland China, Hong Kong, and internationally.

Rewards

Earnings are forecast to grow 6.67% per year

Earnings grew by 66.7% over the past year

Pays a reliable dividend of 3.42%

Risk Analysis

No risks detected for 1666 from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Tong Ren Tang Technologies
Historical stock prices
Current Share PriceHK$5.70
52 Week HighHK$4.46
52 Week LowHK$8.73
Beta0.74
1 Month Change-4.20%
3 Month Change-8.36%
1 Year Change12.65%
3 Year Change-48.56%
5 Year Change-60.69%
Change since IPO695.35%

Recent News & Updates

Sep 06
Tong Ren Tang Technologies (HKG:1666) Seems To Use Debt Rather Sparingly

Tong Ren Tang Technologies (HKG:1666) Seems To Use Debt Rather Sparingly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

1666HK PharmaceuticalsHK Market
7D0.4%0.1%2.1%
1Y12.6%-12.4%5.9%

Return vs Industry: 1666 exceeded the Hong Kong Pharmaceuticals industry which returned -12.4% over the past year.

Return vs Market: 1666 exceeded the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 1666's price volatile compared to industry and market?
1666 volatility
1666 Beta0.74
Industry Beta0.60
Market Beta1

Stable Share Price: 1666 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 1666's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
16693,877Yu Wei Wanghttps://www.tongrentangkj.com

Tong Ren Tang Technologies Co. Ltd. manufactures and sells Chinese medicine products in Mainland China, Hong Kong, and internationally. The company also cultivates, purchases, and sells Chinese medicinal raw materials; produces and sells ointment, tea drinks, and foot care products; sells medicinal products; and provides medical research and development, advertisement, and Chinese medical consultation and treatment services.

Tong Ren Tang Technologies Fundamentals Summary

How do Tong Ren Tang Technologies's earnings and revenue compare to its market cap?
1666 fundamental statistics
Market CapCN¥6.00b
Earnings (TTM)CN¥511.36m
Revenue (TTM)CN¥5.13b

11.7x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1666 income statement (TTM)
RevenueCN¥5.13b
Cost of RevenueCN¥2.84b
Gross ProfitCN¥2.29b
ExpensesCN¥1.78b
EarningsCN¥511.36m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.40
Gross Margin44.70%
Net Profit Margin9.96%
Debt/Equity Ratio29.7%

How did 1666 perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

40%

Payout Ratio

Valuation

Is Tong Ren Tang Technologies undervalued compared to its fair value and its price relative to the market?

11.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 1666 (HK$5.7) is trading above our estimate of fair value (HK$3.78)

Significantly Below Fair Value: 1666 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1666 is poor value based on its PE Ratio (11.7x) compared to the Hong Kong Pharmaceuticals industry average (10x).

PE vs Market: 1666 is poor value based on its PE Ratio (11.7x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1666 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 1666's PB Ratio (1x) is in line with the HK Pharmaceuticals industry average.


Future Growth

How is Tong Ren Tang Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1666's forecast earnings growth (6.7% per year) is above the savings rate (1.5%).

Earnings vs Market: 1666's earnings (6.7% per year) are forecast to grow slower than the Hong Kong market (17.6% per year).

High Growth Earnings: 1666's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1666's revenue (9.7% per year) is forecast to grow slower than the Hong Kong market (12.5% per year).

High Growth Revenue: 1666's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1666's Return on Equity is forecast to be low in 3 years time (8.7%).


Past Performance

How has Tong Ren Tang Technologies performed over the past 5 years?

-8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1666 has high quality earnings.

Growing Profit Margin: 1666's current net profit margins (10%) are higher than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: 1666's earnings have declined by 8.4% per year over the past 5 years.

Accelerating Growth: 1666's earnings growth over the past year (66.7%) exceeds its 5-year average (-8.4% per year).

Earnings vs Industry: 1666 earnings growth over the past year (66.7%) exceeded the Pharmaceuticals industry 23.8%.


Return on Equity

High ROE: 1666's Return on Equity (10.8%) is considered low.


Financial Health

How is Tong Ren Tang Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: 1666's short term assets (CN¥8.7B) exceed its short term liabilities (CN¥3.3B).

Long Term Liabilities: 1666's short term assets (CN¥8.7B) exceed its long term liabilities (CN¥994.5M).


Debt to Equity History and Analysis

Debt Level: 1666's debt to equity ratio (29.7%) is considered satisfactory.

Reducing Debt: 1666's debt to equity ratio has increased from 3.9% to 29.7% over the past 5 years.

Debt Coverage: 1666's debt is well covered by operating cash flow (23.6%).

Interest Coverage: 1666's interest payments on its debt are well covered by EBIT (50x coverage).


Balance Sheet


Dividend

What is Tong Ren Tang Technologies's current dividend yield, its reliability and sustainability?

3.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1666's dividend (3.42%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 1666's dividend (3.42%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 1666's dividends per share have been stable in the past 10 years.

Growing Dividend: 1666's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40.1%), 1666's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Yu Wei Wang (50 yo)

13.58yrs

Tenure

CN¥1,704,000

Compensation

Mr. Yu Wei Wang serves as Secretary of the Board at Aerospace Hi-Tech Holding Group Co., Ltd. (alternate name: Harbin Fenghua-Aerospace Hi-Tech Co. Ltd.). Mr. Wang has been the General Manager at Tong Ren...


CEO Compensation Analysis

Compensation vs Market: Yu Wei's total compensation ($USD266.89K) is below average for companies of similar size in the Hong Kong market ($USD442.19K).

Compensation vs Earnings: Yu Wei's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 1666's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: 1666's board of directors are considered experienced (3.6 years average tenure).


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

Tong Ren Tang Technologies Co. Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Tong Ren Tang Technologies Co. Ltd.
  • Ticker: 1666
  • Exchange: SEHK
  • Founded: 1669
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$7.300b
  • Shares outstanding: 1.28b
  • Website: https://www.tongrentangkj.com

Number of Employees


Location

  • Tong Ren Tang Technologies Co. Ltd.
  • No. 20 Nansanhuan Zhonglu Road
  • Fengtai District
  • Beijing
  • 100079
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/23 10:04
End of Day Share Price2021/10/22 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.