SEHK:3613

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.

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


Market Performance


7 Day Return

0%

SEHK:3613

14.4%

HK Pharmaceuticals

2.2%

HK Market


1 Year Return

-26.3%

SEHK:3613

-14.1%

HK Pharmaceuticals

-11.1%

HK Market

3613 underperformed the Pharmaceuticals industry which returned -13.7% over the past year.

3613 underperformed the Market in Hong Kong which returned -12.3% over the past year.


Share holder returns

3613IndustryMarket
7 Day0%14.4%2.2%
30 Day-7.1%3.5%-7.3%
90 Day-14.9%7.7%-4.8%
1 Year-25.1%-26.3%-12.6%-14.1%-7.9%-11.1%
3 Year25.2%20.0%64.4%56.0%15.5%4.1%
5 Year29.9%21.7%37.9%27.3%10.0%-8.2%

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 based on future cash flows and its price relative to the stock market?

18%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Beijing Tong Ren Tang Chinese Medicine's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Beijing Tong Ren Tang Chinese Medicine's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Beijing Tong Ren Tang Chinese Medicine is overvalued based on earnings compared to the HK Pharmaceuticals industry average.

Beijing Tong Ren Tang Chinese Medicine is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Beijing Tong Ren Tang Chinese Medicine is poor value based on expected growth next year.


Price Based on Value of Assets

Beijing Tong Ren Tang Chinese Medicine is overvalued based on assets compared to the HK Pharmaceuticals industry average.


Next Steps

Future Growth

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

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Beijing Tong Ren Tang Chinese Medicine's revenue is expected to grow by 14.2% yearly, however this is not considered high growth (20% yearly).

Beijing Tong Ren Tang Chinese Medicine's earnings are expected to grow by 12.6% yearly, however this is not considered high growth (20% yearly).

Beijing Tong Ren Tang Chinese Medicine's revenue growth is expected to exceed the Hong Kong market average.

Beijing Tong Ren Tang Chinese Medicine's earnings growth is expected to exceed the Hong Kong market average.

Beijing Tong Ren Tang Chinese Medicine's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Beijing Tong Ren Tang Chinese Medicine is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

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

16.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Beijing Tong Ren Tang Chinese Medicine's year on year earnings growth rate has been positive over the past 5 years.

Beijing Tong Ren Tang Chinese Medicine's 1-year earnings growth exceeds its 5-year average (17% vs 16.5%)

Beijing Tong Ren Tang Chinese Medicine's earnings growth has not exceeded the HK Pharmaceuticals industry average in the past year (17% vs 20%).


Return on Equity

Beijing Tong Ren Tang Chinese Medicine has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Beijing Tong Ren Tang Chinese Medicine used its assets more efficiently than the HK Pharmaceuticals industry average last year based on Return on Assets.


Return on Capital Employed

Beijing Tong Ren Tang Chinese Medicine's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Beijing Tong Ren Tang Chinese Medicine is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Beijing Tong Ren Tang Chinese Medicine's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Beijing Tong Ren Tang Chinese Medicine's level of debt (0%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Beijing Tong Ren Tang Chinese Medicine's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (51493%, greater than 20% of total debt).

Beijing Tong Ren Tang Chinese Medicine earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2627.3x debt.


Next Steps

Dividend

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

2.52%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Beijing Tong Ren Tang Chinese Medicine's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Beijing Tong Ren Tang Chinese Medicine's dividend is below the markets top 25% of dividend payers in Hong Kong (6.12%).

Beijing Tong Ren Tang Chinese Medicine has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Dividend payments have increased, but Beijing Tong Ren Tang Chinese Medicine only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.9x coverage).


Next Steps

Management

What is the CEO of Beijing Tong Ren Tang Chinese Medicine's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Huan Ping Zhang (59yo)

0.3yrs

Tenure

HK$1,725,000

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

Huan Ping's remuneration is lower than average for companies of similar size in Hong Kong.

Huan Ping's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.3yrs

Average Tenure

54yo

Average Age

The average tenure for the Beijing Tong Ren Tang Chinese Medicine management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.3yrs

Average Tenure

57.5yo

Average Age

The tenure for the Beijing Tong Ren Tang Chinese Medicine board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyHK$373,14018 Dec 18
Yong Ding
EntityIndividual
Role
Chairman of the Board
Chairman
Shares30,000
Max PriceHK$12.44

Ownership Breakdown


Management Team

  • Yong Ding (56yo)

    Chairman

    • Tenure: 0.4yrs
  • Huan Ping Zhang (59yo)

    CEO & Executive Director

    • Tenure: 0.3yrs
    • Compensation: HK$1.73m
  • Man Lin (43yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 8.5yrs
    • Compensation: HK$1.73m
  • Xia Li (52yo)

    Chief Engineer

    • Tenure: 0.0yrs

Board Members

  • Yong Ding (56yo)

    Chairman

    • Tenure: 0.4yrs
  • Jasper Tsang (72yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: HK$240.00k
  • Frank Chan (47yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$240.00k
  • Huan Ping Zhang (59yo)

    CEO & Executive Director

    • Tenure: 0.3yrs
    • Compensation: HK$1.73m
  • Zhong Zhao (61yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: HK$240.00k
  • Man Lin (43yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 8.5yrs
    • Compensation: HK$1.73m

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: 2004
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$10.112b
  • 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
  • Wanchai
  • 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 Analysis2019/08/22 12:52
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.