Beijing Tong Ren Tang Chinese Medicine Company Limited

SEHK:3613 Stock Report

Market Cap: HK$7.5b

Beijing Tong Ren Tang Chinese Medicine Valuation

Is 3613 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 3613 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 3613 (HK$8.94) is trading below our estimate of fair value (HK$22.04)

Significantly Below Fair Value: 3613 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 3613?

Other financial metrics that can be useful for relative valuation.

3613 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.5x
Enterprise Value/EBITDA8.4x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does 3613's PE Ratio compare to its peers?

The above table shows the PE ratio for 3613 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.8x
1349 Shanghai Fudan-Zhangjiang Bio-PharmaceuticalLtd
18.8xn/aHK$6.4b
2877 China Shineway Pharmaceutical Group
7.8x10.4%HK$7.5b
1666 Tong Ren Tang Technologies
9.9x7.1%HK$6.4b
719 Shandong Xinhua Pharmaceutical
6.5xn/aHK$9.8b
3613 Beijing Tong Ren Tang Chinese Medicine
13.8x15.2%HK$7.5b

Price-To-Earnings vs Peers: 3613 is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (10.8x).


Price to Earnings Ratio vs Industry

How does 3613's PE Ratio compare vs other companies in the HK Pharmaceuticals Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: 3613 is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the Hong Kong Pharmaceuticals industry average (7.8x).


Price to Earnings Ratio vs Fair Ratio

What is 3613's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

3613 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.8x
Fair PE Ratio10.2x

Price-To-Earnings vs Fair Ratio: 3613 is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 3613 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$8.94
HK$13.93
+55.8%
7.7%HK$15.00HK$12.85n/a2
Mar ’25HK$9.37
HK$14.93
+59.3%
13.9%HK$17.00HK$12.85n/a2
Feb ’25HK$9.63
HK$14.93
+55.0%
13.9%HK$17.00HK$12.85n/a2
Jan ’25HK$12.14
HK$17.72
+45.9%
5.7%HK$18.55HK$16.30n/a3
Dec ’24HK$12.80
HK$17.72
+38.4%
5.7%HK$18.55HK$16.30n/a3
Nov ’24HK$11.88
HK$17.72
+49.1%
5.7%HK$18.55HK$16.30n/a3
Oct ’24HK$12.96
HK$17.72
+36.7%
5.7%HK$18.55HK$16.30n/a3
Sep ’24HK$14.24
HK$17.72
+24.4%
5.7%HK$18.55HK$16.30n/a3
Aug ’24HK$13.80
HK$17.32
+25.5%
9.0%HK$18.55HK$15.11n/a3
Jul ’24HK$14.34
HK$17.32
+20.8%
9.0%HK$18.55HK$15.11n/a3
Jun ’24HK$14.52
HK$15.56
+7.1%
2.9%HK$16.00HK$15.11n/a2
May ’24HK$16.00
HK$15.56
-2.8%
2.9%HK$16.00HK$15.11n/a2
Apr ’24HK$13.52
HK$15.56
+15.1%
2.9%HK$16.00HK$15.11n/a2
Mar ’24HK$12.10
HK$13.35
+10.3%
6.4%HK$14.20HK$12.50HK$9.372
Feb ’24HK$12.22
HK$13.35
+9.2%
6.4%HK$14.20HK$12.50HK$9.632
Jan ’24HK$11.46
HK$13.35
+16.5%
6.4%HK$14.20HK$12.50HK$12.142
Dec ’23HK$10.54
HK$13.35
+26.7%
6.4%HK$14.20HK$12.50HK$12.802
Nov ’23HK$9.09
HK$13.35
+46.9%
6.4%HK$14.20HK$12.50HK$11.882
Oct ’23HK$8.82
HK$13.35
+51.4%
6.4%HK$14.20HK$12.50HK$12.962
Sep ’23HK$9.90
HK$13.57
+37.0%
5.6%HK$14.20HK$12.50HK$14.243
Aug ’23HK$10.10
HK$14.60
+44.6%
3.1%HK$15.10HK$14.00HK$13.803
Jul ’23HK$12.66
HK$14.73
+16.4%
4.2%HK$15.50HK$14.00HK$14.343
Jun ’23HK$10.38
HK$14.73
+41.9%
4.2%HK$15.50HK$14.00HK$14.523
May ’23HK$11.40
HK$14.73
+29.2%
4.2%HK$15.50HK$14.00HK$16.003
Apr ’23HK$10.96
HK$14.73
+34.4%
4.2%HK$15.50HK$14.00HK$13.523
Mar ’23HK$10.88
HK$14.60
+34.2%
9.4%HK$16.50HK$13.30HK$12.103

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.


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