China Traditional Chinese Medicine Holdings
Market Cap
HK$16.6b
Last Updated
2020/11/27 10:11 UTC
Data Sources
Company Financials +
Executive Summary
China Traditional Chinese Medicine Holdings Co. More Details
Rewards
Risk Analysis
No risks detected for 570 from our risk checks.
Snowflake Analysis
Very undervalued with adequate balance sheet.
Similar Companies
Share Price & News
How has China Traditional Chinese Medicine Holdings's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 570 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: 570's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-2.0%
570
-0.8%
HK Pharmaceuticals
1.1%
HK Market
1 Year Return
-2.6%
570
3.1%
HK Pharmaceuticals
8.2%
HK Market
Return vs Industry: 570 underperformed the Hong Kong Pharmaceuticals industry which returned 3.1% over the past year.
Return vs Market: 570 underperformed the Hong Kong Market which returned 8.2% over the past year.
Shareholder returns
| 570 | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | -0.8% | 1.1% |
| 30 Day | 6.6% | -2.1% | 7.2% |
| 90 Day | 1.5% | -11.2% | 5.2% |
| 1 Year | -1.3%-2.6% | 4.8%3.1% | 12.6%8.2% |
| 3 Year | -14.2%-19.2% | -4.5%-10.0% | 0.4%-10.0% |
| 5 Year | -28.2%-34.7% | 28.9%18.7% | 30.6%8.5% |
Long-Term Price Volatility Vs. Market
How volatile is China Traditional Chinese Medicine Holdings's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Declining Stock and Decent Financials: Is The Market Wrong About China Traditional Chinese Medicine Holdings Co. Limited (HKG:570)?3 weeks ago | Simply Wall St
China Traditional Chinese Medicine Holdings (HKG:570) Share Prices Have Dropped 45% In The Last Five Years1 month ago | Simply Wall St
China Traditional Chinese Medicine Holdings (HKG:570) Seems To Use Debt Quite SensiblyValuation
Is China Traditional Chinese Medicine Holdings undervalued compared to its fair value and its price relative to the market?
36.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 570 (HK$3.4) is trading below our estimate of fair value (HK$5.32)
Significantly Below Fair Value: 570 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 570 is good value based on its PE Ratio (9.9x) compared to the HK Pharmaceuticals industry average (10.8x).
PE vs Market: 570 is good value based on its PE Ratio (9.9x) compared to the Hong Kong market (11.2x).
Price to Earnings Growth Ratio
PEG Ratio: 570 is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: 570 is good value based on its PB Ratio (0.8x) compared to the HK Pharmaceuticals industry average (1.1x).
Next Steps
Future Growth
How is China Traditional Chinese Medicine Holdings forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
12.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 570's forecast earnings growth (12.6% per year) is above the savings rate (1.6%).
Earnings vs Market: 570's earnings (12.6% per year) are forecast to grow slower than the Hong Kong market (21.9% per year).
High Growth Earnings: 570's earnings are forecast to grow, but not significantly.
Revenue vs Market: 570's revenue (13.4% per year) is forecast to grow slower than the Hong Kong market (13.6% per year).
High Growth Revenue: 570's revenue (13.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 570's Return on Equity is forecast to be low in 3 years time (9.8%).
Next Steps
Past Performance
How has China Traditional Chinese Medicine Holdings performed over the past 5 years?
20.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 570 has high quality earnings.
Growing Profit Margin: 570's current net profit margins (10.4%) are lower than last year (12.1%).
Past Earnings Growth Analysis
Earnings Trend: 570's earnings have grown significantly by 20.5% per year over the past 5 years.
Accelerating Growth: 570's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 570 had negative earnings growth (-5%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-12.5%).
Return on Equity
High ROE: 570's Return on Equity (8.4%) is considered low.
Next Steps
Financial Health
How is China Traditional Chinese Medicine Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 570's short term assets (CN¥16.5B) exceed its short term liabilities (CN¥9.7B).
Long Term Liabilities: 570's short term assets (CN¥16.5B) exceed its long term liabilities (CN¥4.5B).
Debt to Equity History and Analysis
Debt Level: 570's debt to equity ratio (39.2%) is considered satisfactory.
Reducing Debt: 570's debt to equity ratio has increased from 14.1% to 39.2% over the past 5 years.
Debt Coverage: 570's debt is not well covered by operating cash flow (15.7%).
Interest Coverage: 570's interest payments on its debt are well covered by EBIT (9x coverage).
Balance Sheet
Next Steps
Dividend
What is China Traditional Chinese Medicine Holdings's current dividend yield, its reliability and sustainability?
4.23%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate 570's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate 570's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if 570's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if 570's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: 570 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 570's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Xiaochun Wang (52 yo)
3.67yrs
Tenure
CN¥2,288,000
Compensation
Mr. Wang Xiaochun has been Managing Director of China Traditional Chinese Medicine Holdings Co. Limited (alternatively China Traditional Chinese Medicine Co. Limited and formerly Wing Shan International Lt...
CEO Compensation Analysis
Compensation vs Market: Xiaochun's total compensation ($USD347.97K) is below average for companies of similar size in the Hong Kong market ($USD588.95K).
Compensation vs Earnings: Xiaochun's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 7.75yrs | CN¥2.53m | no data | |
| CEO, President | 3.67yrs | CN¥2.29m | 5.36% CN¥ 891.0m | |
| VP & Executive Director | 1.92yrs | CN¥2.39m | no data | |
| Chief Financial Officer | 1.92yrs | no data | no data | |
| VP, Joint Company Secretary & Chief Legal Advisor | 1.08yrs | CN¥1.56m | no data | |
| Joint Company Secretary | 4.08yrs | no data | no data |
2.8yrs
Average Tenure
52yo
Average Age
Experienced Management: 570's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 7.75yrs | CN¥2.53m | no data | |
| CEO, President | 3.67yrs | CN¥2.29m | 5.36% CN¥ 891.0m | |
| VP & Executive Director | 1.92yrs | CN¥2.39m | no data | |
| Independent Non-Executive Director | 7.75yrs | CN¥264.00k | no data | |
| Independent Non-Executive Director | 1.75yrs | CN¥245.00k | no data | |
| Independent Non-Executive Director | 7yrs | CN¥273.00k | no data | |
| Non-Executive Director | 2.67yrs | no data | no data | |
| Non Executive Director | 2.5yrs | CN¥146.00k | no data | |
| Independent Non-Executive Director | 1.75yrs | CN¥245.00k | no data | |
| Non-Executive Director | 1.92yrs | no data | no data | |
| Non-Executive Director | 1.92yrs | no data | no data | |
| Non-Executive Director | 1.75yrs | no data | no data |
2.2yrs
Average Tenure
52.5yo
Average Age
Experienced Board: 570's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
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
China Traditional Chinese Medicine Holdings Co. Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Traditional Chinese Medicine Holdings Co. Limited
- Ticker: 570
- Exchange: SEHK
- Founded:
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: HK$16.618b
- Shares outstanding: 5.04b
- Website: https://www.china-tcm.com.cn
Number of Employees
Location
- China Traditional Chinese Medicine Holdings Co. Limited
- No. 1 Keyuanheng Four Road
- High-tech Park
- Foshan
- Guangdong Province
- China
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 570 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | May 1993 |
| 570 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | May 1993 |
| 570 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | May 1993 |
Biography
China Traditional Chinese Medicine Holdings Co. Limited, an investment holding company, engages in the research and development, production, and sale of Chinese medicine and pharmaceutical products in the ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/27 10:11 |
| End of Day Share Price | 2020/11/27 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.