SEHK:3613

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Beijing Tong Ren Tang Chinese Medicine

Executive Summary

Beijing Tong Ren Tang Chinese Medicine Company Limited, together with its subsidiaries, engages in the manufacture, retail, and wholesale of Chinese medicine and healthcare products to wholesalers and individuals. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Beijing Tong Ren Tang Chinese Medicine's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 3613 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 3613's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.7%

3613

0.8%

HK Pharmaceuticals

0.9%

HK Market


1 Year Return

-7.5%

3613

4.4%

HK Pharmaceuticals

7.7%

HK Market

Return vs Industry: 3613 underperformed the Hong Kong Pharmaceuticals industry which returned 4.4% over the past year.

Return vs Market: 3613 underperformed the Hong Kong Market which returned 7.7% over the past year.


Shareholder returns

3613IndustryMarket
7 Day6.7%0.8%0.9%
30 Day9.9%-0.7%6.1%
90 Day5.9%-9.0%4.6%
1 Year-5.4%-7.5%6.1%4.4%12.1%7.7%
3 Year-4.8%-14.9%-1.9%-7.6%-1.5%-11.7%
5 Year19.6%3.8%39.2%28.1%32.0%9.7%

Long-Term Price Volatility Vs. Market

How volatile is Beijing Tong Ren Tang Chinese Medicine's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

18.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 3613 (HK$9.29) is trading above our estimate of fair value (HK$4.14)

Significantly Below Fair Value: 3613 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 3613 is poor value based on its PE Ratio (18.3x) compared to the HK Pharmaceuticals industry average (10.7x).

PE vs Market: 3613 is poor value based on its PE Ratio (18.3x) compared to the Hong Kong market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: 3613 is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: 3613 is overvalued based on its PB Ratio (2.9x) compared to the HK Pharmaceuticals industry average (1.1x).


Next Steps

Future Growth

How is Beijing Tong Ren Tang Chinese Medicine forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3613's forecast earnings growth (16.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 3613's earnings (16.3% per year) are forecast to grow slower than the Hong Kong market (22% per year).

High Growth Earnings: 3613's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3613's revenue (11.3% per year) is forecast to grow slower than the Hong Kong market (13.8% per year).

High Growth Revenue: 3613's revenue (11.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3613's Return on Equity is forecast to be low in 3 years time (18.1%).


Next Steps

Past Performance

How has Beijing Tong Ren Tang Chinese Medicine performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3613 has high quality earnings.

Growing Profit Margin: 3613's current net profit margins (36%) are lower than last year (40.1%).


Past Earnings Growth Analysis

Earnings Trend: 3613's earnings have grown by 9.7% per year over the past 5 years.

Accelerating Growth: 3613's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3613 had negative earnings growth (-32.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-11.9%).


Return on Equity

High ROE: 3613's Return on Equity (15.8%) is considered low.


Next Steps

Financial Health

How is Beijing Tong Ren Tang Chinese Medicine's financial position?


Financial Position Analysis

Short Term Liabilities: 3613's short term assets (HK$2.7B) exceed its short term liabilities (HK$307.5M).

Long Term Liabilities: 3613's short term assets (HK$2.7B) exceed its long term liabilities (HK$67.3M).


Debt to Equity History and Analysis

Debt Level: 3613's debt to equity ratio (0.05%) is considered satisfactory.

Reducing Debt: 3613's debt to equity ratio has reduced from 0.2% to 0.05% over the past 5 years.

Debt Coverage: 3613's debt is well covered by operating cash flow (23319%).

Interest Coverage: 3613 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Beijing Tong Ren Tang Chinese Medicine current dividend yield, its reliability and sustainability?

2.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3613's dividend (2.48%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.23%).

High Dividend: 3613's dividend (2.48%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.65%).


Stability and Growth of Payments

Stable Dividend: 3613 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3613's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.4%), 3613's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3613's dividends in 3 years are forecast to be well covered by earnings (35.8% payout ratio).


Next Steps

Management

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

1.0yrs

Average management tenure


CEO

Huan Ping Zhang (60 yo)

1.58yrs

Tenure

HK$1,801,000

Compensation

Mr. Zhang Huan Ping has been the Chief Executive Officer of Beijing Tong Ren Tang Chinese Medicine Company Limited since April 18, 2019. Mr. Ping served as the Deputy General Manager of Beijing Tong Ren Ta...


CEO Compensation Analysis

Compensation vs Market: Huan Ping's total compensation ($USD232.34K) is below average for companies of similar size in the Hong Kong market ($USD478.53K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yong Ding
Executive Chairman1.67yrsno data0.049%
HK$ 3.8m
Huan Ping Zhang
CEO & Executive Director1.58yrsHK$1.80m0.012%
HK$ 929.3k
Man Lin
COO & Executive Director9.75yrsHK$1.79m0.035%
HK$ 2.7m
Fung Tsang
CFO & Company Secretary0.50yrno datano data
Xia Li
Chief Engineerno datano datano data

1.0yrs

Average Tenure

53yo

Average Age

Experienced Management: 3613's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Yong Ding
Executive Chairman1.67yrsno data0.049%
HK$ 3.8m
Huan Ping Zhang
CEO & Executive Director1.58yrsHK$1.80m0.012%
HK$ 929.3k
Man Lin
COO & Executive Director9.75yrsHK$1.79m0.035%
HK$ 2.7m
Yok-Sing Tsang
Independent Non-Executive Director3.17yrsHK$240.00kno data
Ngai Chi Chan
Independent Non-Executive Director7.58yrsHK$240.00kno data
Zhong Zhao
Independent Non-Executive Director7.58yrsHK$240.00kno data
Fei Chen
Non-Executive Director0.67yrno datano data

7.6yrs

Average Tenure

57yo

Average Age

Experienced Board: 3613's board of directors are considered experienced (7.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 3613 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Beijing Tong Ren Tang Chinese Medicine Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Beijing Tong Ren Tang Chinese Medicine Company Limited
  • Ticker: 3613
  • Exchange: SEHK
  • Founded: 1669
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$7.777b
  • Shares outstanding: 837.10m
  • Website: https://www.tongrentangcm.com

Number of Employees


Location

  • Beijing Tong Ren Tang Chinese Medicine Company Limited
  • Office Tower
  • Room 1405-1409
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3613SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 2013
TQRDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2013
3613SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2013
3613SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 2013

Biography

Beijing Tong Ren Tang Chinese Medicine Company Limited, together with its subsidiaries, engages in the manufacture, retail, and wholesale of Chinese medicine and healthcare products to wholesalers and indi...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 04:14
End of Day Share Price2020/11/23 00:00
Earnings2020/06/30
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.