SEHK:570

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China Traditional Chinese Medicine Holdings

Executive Summary

China Traditional Chinese Medicine Holdings Co.


Snowflake Analysis

Flawless balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.7%

570

4.6%

HK Pharmaceuticals

6.6%

HK Market


1 Year Return

18.1%

570

25.1%

HK Pharmaceuticals

0.6%

HK Market

Return vs Industry: 570 underperformed the Hong Kong Pharmaceuticals industry which returned 25.1% over the past year.

Return vs Market: 570 exceeded the Hong Kong Market which returned 0.6% over the past year.


Shareholder returns

570IndustryMarket
7 Day11.7%4.6%6.6%
30 Day21.8%8.6%8.1%
90 Day24.6%21.5%13.9%
1 Year21.6%18.1%27.3%25.1%4.7%0.6%
3 Year4.0%-3.2%37.2%29.3%9.7%-2.2%
5 Year-22.3%-29.4%61.5%48.9%12.5%-6.4%

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

Valuation

Is China Traditional Chinese Medicine Holdings undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 570 (HK$4.3) is trading below our estimate of fair value (HK$8.9)

Significantly Below Fair Value: 570 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 570's PE Ratio (12.3x) is in line with the HK Pharmaceuticals industry average.

PE vs Market: 570 is poor value based on its PE Ratio (12.3x) compared to the Hong Kong market (10.5x).


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's PB Ratio (1.2x) is in line with the HK Pharmaceuticals industry average.


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 12 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 570's forecast earnings growth (15.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 570's earnings (15.1% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

High Growth Earnings: 570's earnings are forecast to grow, but not significantly.

Revenue vs Market: 570's revenue (15.6% per year) is forecast to grow faster than the Hong Kong market (10.8% per year).

High Growth Revenue: 570's revenue (15.6% 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 (12.3%).


Next Steps

Past Performance

How has China Traditional Chinese Medicine Holdings performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 570 has high quality earnings.

Growing Profit Margin: 570's current net profit margins (11.1%) are lower than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: 570's earnings have grown significantly by 25.1% per year over the past 5 years.

Accelerating Growth: 570's earnings growth over the past year (10.4%) is below its 5-year average (25.1% per year).

Earnings vs Industry: 570 earnings growth over the past year (10.4%) exceeded the Pharmaceuticals industry 6%.


Return on Equity

High ROE: 570's Return on Equity (9.3%) 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¥15.3B) exceed its short term liabilities (CN¥11.1B).

Long Term Liabilities: 570's short term assets (CN¥15.3B) exceed its long term liabilities (CN¥2.3B).


Debt to Equity History and Analysis

Debt Level: 570's debt to equity ratio (29.4%) is considered satisfactory.

Reducing Debt: 570's debt to equity ratio has reduced from 35.3% to 29.4% over the past 5 years.

Debt Coverage: 570's debt is well covered by operating cash flow (28.3%).

Interest Coverage: 570's interest payments on its debt are well covered by EBIT (9.7x coverage).


Balance Sheet


Next Steps

Dividend

What is China Traditional Chinese Medicine Holdings's current dividend yield, its reliability and sustainability?

2.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 570's dividend (2.44%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.26%).

High Dividend: 570's dividend (2.44%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.67%).


Stability and Growth of Payments

Stable Dividend: 570 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 570's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30%), 570's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 570's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Xiaochun Wang (52yo)

3.33yrs

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 ($USD327.15K) is below average for companies of similar size in the Hong Kong market ($USD535.97K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xian Wu
Chairman of the Board7.42yrsCN¥2.53mno data
Xiaochun Wang
CEO, President3.33yrsCN¥2.29m5.36% CN¥1.2b
Wenming Yang
VP & Executive Director1.58yrsCN¥2.39mno data
Xingkai Wang
Chief Financial Officer1.58yrsno datano data
Dongji Zhao
VP, Joint Company Secretary & Chief Legal Advisor0.75yrCN¥1.56mno data
Suet Lun Leung
Joint Company Secretary3.75yrsno datano data

2.5yrs

Average Tenure

52yo

Average Age

Experienced Management: 570's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xian Wu
Chairman of the Board7.42yrsCN¥2.53mno data
Xiaochun Wang
CEO, President3.33yrsCN¥2.29m5.36% CN¥1.2b
Wenming Yang
VP & Executive Director1.58yrsCN¥2.39mno data
Rong Xie
Independent Non-Executive Director7.42yrsCN¥264.00kno data
Ling Qin
Independent Non-Executive Director1.42yrsCN¥245.00kno data
Tze Shan Yu
Independent Non-Executive Director6.67yrsCN¥273.00kno data
Shanhua Yang
Non-Executive Director2.33yrsno datano data
Kaipin Kui
Non Executive Director2.17yrsCN¥146.00kno data
Binghua Yang
Non-Executive Director1.58yrsno datano data
Kan Wang
Non-Executive Director1.58yrsno datano data

2.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 570's board of directors are not considered experienced ( 2.3 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$21.755b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
570SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1993
570SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1993
570SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 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 People's Republic of China. The company offers granules, finished drugs, decoction pieces, and healthcare products. It is also involved in the cultivation of Chinese medicinal herbs; preparation of traditional Chinese medicines; trading of pharmaceutical products; provision of traditional Chinese medical consultation services; and retail of pharmaceuticals and decoction. The company also provides logistics and warehouse, and property leasing services. The company sells its products to hospitals and retail pharmacies. The company was formerly known as China Traditional Chinese Medicine Co. Limited and changed its name to China Traditional Chinese Medicine Holdings Co. Limited in July 2016. China Traditional China Traditional Chinese Medicine Holdings Co. Limited is headquartered in Foshan, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/10 12:40
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
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.