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China Traditional Chinese Medicine Holdings

SEHK:570
Snowflake Description

Undervalued with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
570
SEHK
HK$19B
Market Cap
  1. Home
  2. HK
  3. Pharmaceuticals & Biotech
Company description

China Traditional Chinese Medicine Holdings Co. The last earnings update was 49 days ago. More info.


Add to Portfolio Compare Print
  • China Traditional Chinese Medicine Holdings has significant price volatility in the past 3 months.
570 Share Price and Events
7 Day Returns
-3.3%
SEHK:570
-0.1%
HK Pharmaceuticals
0.5%
HK Market
1 Year Returns
-48%
SEHK:570
-38.2%
HK Pharmaceuticals
-15.9%
HK Market
570 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
China Traditional Chinese Medicine Holdings (570) -3.3% -7.8% -23.5% -48% 21.2% 8.3%
HK Pharmaceuticals -0.1% -9.9% -11.6% -38.2% 44.1% 23.7%
HK Market 0.5% -2.7% -9.9% -15.9% 20.6% 3%
1 Year Return vs Industry and Market
  • 570 underperformed the Pharmaceuticals industry which returned -38.2% over the past year.
  • 570 underperformed the Market in Hong Kong which returned -15.9% over the past year.
Price Volatility
570
Industry
5yr Volatility vs Market
Related Companies

570 Value

 Is China Traditional Chinese Medicine Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of China Traditional Chinese Medicine Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for China Traditional Chinese Medicine Holdings.

SEHK:570 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.2%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:570
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.64
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.64 (1 + (1- 25%) (36.51%))
0.876
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.876 * 5.96%)
7.22%

Discounted Cash Flow Calculation for SEHK:570 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for China Traditional Chinese Medicine Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:570 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 7.22%)
2019 1,006.39 Analyst x3 938.60
2020 1,464.56 Analyst x4 1,273.88
2021 1,391.70 Analyst x3 1,128.96
2022 2,193.00 Analyst x1 1,659.14
2023 2,859.00 Analyst x1 2,017.30
2024 3,381.09 Est @ 18.26% 2,224.97
2025 3,833.60 Est @ 13.38% 2,352.81
2026 4,215.79 Est @ 9.97% 2,413.07
2027 4,535.33 Est @ 7.58% 2,421.09
2028 4,803.22 Est @ 5.91% 2,391.36
Present value of next 10 years cash flows CN¥18,821.20
SEHK:570 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥4,803.22 × (1 + 2%) ÷ (7.22% – 2%)
CN¥93,855.73
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥93,855.73 ÷ (1 + 7.22%)10
CN¥46,727.71
SEHK:570 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥18,821.20 + CN¥46,727.71
CN¥65,548.92
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥65,548.92 / 5,035.80
CN¥13.02
SEHK:570 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:570)
1.13
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥13.02 x 1.13
HK$14.71
Value per share (HKD) From above. HK$14.71
Current discount Discount to share price of HK$3.77
= -1 x (HK$3.77 - HK$14.71) / HK$14.71
74.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price China Traditional Chinese Medicine Holdings is available for.
Intrinsic value
>50%
Share price is HK$3.77 vs Future cash flow value of HK$14.71
Current Discount Checks
For China Traditional Chinese Medicine Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • China Traditional Chinese Medicine Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • China Traditional Chinese Medicine Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for China Traditional Chinese Medicine Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are China Traditional Chinese Medicine Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:570 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CNY CN¥0.30
SEHK:570 Share Price ** SEHK (2019-06-14) in HKD HK$3.77
SEHK:570 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥3.34
Hong Kong Pharmaceuticals Industry PE Ratio Median Figure of 30 Publicly-Listed Pharmaceuticals Companies 12.42x
Hong Kong Market PE Ratio Median Figure of 1,487 Publicly-Listed Companies 10.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of China Traditional Chinese Medicine Holdings.

SEHK:570 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:570 Share Price ÷ EPS (both in CNY)

= 3.34 ÷ 0.30

11.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Traditional Chinese Medicine Holdings is good value based on earnings compared to the HK Pharmaceuticals industry average.
  • China Traditional Chinese Medicine Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does China Traditional Chinese Medicine Holdings's expected growth come at a high price?
Raw Data
SEHK:570 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
16.1%per year
Hong Kong Pharmaceuticals Industry PEG Ratio Median Figure of 17 Publicly-Listed Pharmaceuticals Companies 0.98x
Hong Kong Market PEG Ratio Median Figure of 466 Publicly-Listed Companies 0.76x

*Line of best fit is calculated by linear regression .

SEHK:570 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.18x ÷ 16.1%

0.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Traditional Chinese Medicine Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on China Traditional Chinese Medicine Holdings's assets?
Raw Data
SEHK:570 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CNY CN¥3.09
SEHK:570 Share Price * SEHK (2019-06-14) in HKD HK$3.77
SEHK:570 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.885 CN¥3.34
Hong Kong Pharmaceuticals Industry PB Ratio Median Figure of 37 Publicly-Listed Pharmaceuticals Companies 1.47x
Hong Kong Market PB Ratio Median Figure of 2,169 Publicly-Listed Companies 0.93x
SEHK:570 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:570 Share Price ÷ Book Value per Share (both in CNY)

= 3.34 ÷ 3.09

1.08x

* Primary Listing of China Traditional Chinese Medicine Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Traditional Chinese Medicine Holdings is good value based on assets compared to the HK Pharmaceuticals industry average.
X
Value checks
We assess China Traditional Chinese Medicine Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. China Traditional Chinese Medicine Holdings has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

570 Future Performance

 How is China Traditional Chinese Medicine Holdings expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is China Traditional Chinese Medicine Holdings expected to grow at an attractive rate?
  • China Traditional Chinese Medicine Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • China Traditional Chinese Medicine Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • China Traditional Chinese Medicine Holdings's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:570 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:570 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 16.1%
SEHK:570 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 18%
Hong Kong Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 8.4%
Hong Kong Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 13%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:570 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:570 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 4,164
2022-12-31 3,383
2021-12-31 19,584 2,715 2,460 11
2020-12-31 16,662 2,326 2,068 15
2019-12-31 13,856 2,135 1,709 17
SEHK:570 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2018-12-31 11,259 1,190 1,439
2018-09-30 10,579 1,103 1,386
2018-06-30 9,900 1,016 1,332
2018-03-31 9,119 1,126 1,251
2017-12-31 8,338 1,236 1,170
2017-09-30 7,785 419 1,123
2017-06-30 7,233 -397 1,075
2017-03-31 6,883 534 1,021
2016-12-31 6,533 1,465 967
2016-09-30 6,010 1,248 880
2016-06-30 5,487 1,031 794
2016-03-31 4,598 775 670

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • China Traditional Chinese Medicine Holdings's earnings are expected to grow by 16.1% yearly, however this is not considered high growth (20% yearly).
  • China Traditional Chinese Medicine Holdings's revenue is expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:570 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from China Traditional Chinese Medicine Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:570 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.50 0.55 0.43 9.00
2020-12-31 0.42 0.45 0.36 13.00
2019-12-31 0.35 0.36 0.31 13.00
SEHK:570 Past Financials Data
Date (Data in CNY Millions) EPS *
2018-12-31 0.30
2018-09-30 0.30
2018-06-30 0.29
2018-03-31 0.28
2017-12-31 0.26
2017-09-30 0.25
2017-06-30 0.24
2017-03-31 0.23
2016-12-31 0.22
2016-09-30 0.20
2016-06-30 0.18
2016-03-31 0.17

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • China Traditional Chinese Medicine Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess China Traditional Chinese Medicine Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
China Traditional Chinese Medicine Holdings has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

570 Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare China Traditional Chinese Medicine Holdings's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • China Traditional Chinese Medicine Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • China Traditional Chinese Medicine Holdings's 1-year earnings growth is less than its 5-year average (22.9% vs 32.5%)
  • China Traditional Chinese Medicine Holdings's earnings growth has exceeded the HK Pharmaceuticals industry average in the past year (22.9% vs 18%).
Earnings and Revenue History
China Traditional Chinese Medicine Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from China Traditional Chinese Medicine Holdings Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:570 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,258.94 1,439.02 3,877.04 346.54
2018-09-30 10,579.50 1,385.57 3,584.18 288.10
2018-06-30 9,900.05 1,332.12 3,309.78 229.65
2018-03-31 9,118.92 1,251.28 3,048.20 215.91
2017-12-31 8,337.80 1,170.43 2,768.15 202.16
2017-09-30 7,785.27 1,122.60 2,595.03 205.28
2017-06-30 7,232.75 1,074.77 2,421.90 208.40
2017-03-31 6,882.81 1,020.85 2,360.16 197.61
2016-12-31 6,532.87 966.93 2,298.42 186.83
2016-09-30 6,009.75 880.23 2,146.84 183.81
2016-06-30 5,486.63 793.53 1,995.27 180.79
2016-03-31 4,598.02 669.76 1,731.75 146.56
2015-12-31 3,709.41 545.99 1,468.23 112.32
2015-09-30 3,271.09 508.60 1,309.46 71.95
2015-06-30 2,832.77 471.20 1,150.68 31.57
2015-03-31 2,741.61 443.98 1,137.83 15.78
2014-12-31 2,650.45 416.76 1,124.98
2014-09-30 2,383.90 370.49 998.73
2014-06-30 2,117.34 324.22 872.47
2014-03-31 1,755.98 261.34 724.70
2013-12-31 1,394.61 198.46 576.94
2013-09-30 1,232.68 183.40 488.82
2013-06-30 1,081.90 169.82 404.64
2013-03-31 1,054.25 168.83 378.17
2012-12-31 1,031.77 168.53 353.53
2012-09-30 958.93 130.02 349.56
2012-06-30 899.04 93.06 350.47

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • China Traditional Chinese Medicine Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • China Traditional Chinese Medicine Holdings used its assets less efficiently than the HK Pharmaceuticals industry average last year based on Return on Assets.
  • China Traditional Chinese Medicine Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess China Traditional Chinese Medicine Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
China Traditional Chinese Medicine Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

570 Health

 How is China Traditional Chinese Medicine Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up China Traditional Chinese Medicine Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • China Traditional Chinese Medicine Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • China Traditional Chinese Medicine Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of China Traditional Chinese Medicine Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from China Traditional Chinese Medicine Holdings Company Filings, last reported 5 months ago.

SEHK:570 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 17,510.57 6,133.51 6,462.08
2018-09-30 17,510.57 6,133.51 6,462.08
2018-06-30 16,807.11 5,169.01 4,979.13
2018-03-31 16,807.11 5,169.01 4,979.13
2017-12-31 13,815.26 5,153.66 4,932.80
2017-09-30 13,815.26 5,153.66 4,932.80
2017-06-30 13,263.93 5,457.72 3,683.78
2017-03-31 13,263.93 5,457.72 3,683.78
2016-12-31 12,755.86 3,909.94 3,524.98
2016-09-30 12,755.86 3,909.94 3,524.98
2016-06-30 12,509.19 2,739.65 2,168.86
2016-03-31 12,509.19 2,739.65 2,168.86
2015-12-31 12,140.21 2,450.36 2,246.69
2015-09-30 12,140.21 2,450.36 2,246.69
2015-06-30 10,006.77 1,397.97 6,759.21
2015-03-31 10,006.77 1,397.97 6,759.21
2014-12-31 3,257.12 1,172.21 440.38
2014-09-30 3,257.12 1,172.21 440.38
2014-06-30 3,019.38 1,148.12 359.43
2014-03-31 3,019.38 1,148.12 359.43
2013-12-31 2,834.76 1,251.90 355.81
2013-09-30 2,834.76 1,251.90 355.81
2013-06-30 1,502.01 380.17 633.00
2013-03-31 1,518.67 384.38 640.02
2012-12-31 845.77 414.42 46.95
2012-09-30 845.79 414.43 46.96
2012-06-30 777.92 406.93 57.06
  • China Traditional Chinese Medicine Holdings's level of debt (35%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (44.1% vs 35% today).
  • Debt is not well covered by operating cash flow (19.4%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.4x coverage).
X
Financial health checks
We assess China Traditional Chinese Medicine Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. China Traditional Chinese Medicine Holdings has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

570 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.99%
Current annual income from China Traditional Chinese Medicine Holdings dividends. Estimated to be 4.01% next year.
If you bought HK$2,000 of China Traditional Chinese Medicine Holdings shares you are expected to receive HK$60 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • China Traditional Chinese Medicine Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • China Traditional Chinese Medicine Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:570 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Hong Kong Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 1.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 966 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:570 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.15 5.00
2020-12-31 0.15 8.00
2019-12-31 0.11 7.00
SEHK:570 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-29 0.100 2.778
2018-08-14 0.093 2.105
2018-03-28 0.080 1.472
2017-06-05 0.057 1.601
2017-04-27 0.064 1.662
2017-03-21 0.064 1.654
2016-08-23 0.110 3.366
2014-04-29 0.000 0.000
2014-03-24 0.000 0.000
2013-09-23 0.000 0.000
2013-08-29 0.000 0.000
2013-04-18 0.000 0.000
2013-03-25 0.000 0.000
2012-09-10 0.040 3.042
2012-08-30 0.041 3.363
2012-03-23 0.040 3.810
2010-09-07 0.000 0.000
2010-08-16 0.000 0.000
2010-04-21 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • China Traditional Chinese Medicine Holdings 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 China Traditional Chinese Medicine Holdings only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of China Traditional Chinese Medicine Holdings's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.3x coverage).
X
Income/ dividend checks
We assess China Traditional Chinese Medicine Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can China Traditional Chinese Medicine Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. China Traditional Chinese Medicine Holdings has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

570 Management

 What is the CEO of China Traditional Chinese Medicine Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Xiaochun Wang
COMPENSATION CN¥2,160,000
AGE 50
TENURE AS CEO 2.3 years
CEO Bio

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 Ltd.) since March 31, 2017 and its Executive Director since October 23, 2013. Mr. Wang has been the President at China Traditional Chinese Medicine Holdings Co. Limited since December 24, 2018 and is its CEO. Mr. Wang served as the Chairman and Chief Executive Officer Tongjitang Chinese Medicines Co. He served as the President and Chairman of the Board at Tongjitang Pharmaceutical since May 1997. He served as Vice President of Customer Service and Information at Lenovo Group Limited. He serves as the Chairman of The board of directors and the chief executive officer of the Target Company. He has been a Director of Tongjitang Distribution since February 2001; Guizhou Tongjitang Traditional Chinese Medicines Planting Co., Ltd. since June 2006; Tongjitang Pharmaceutical (Hong Kong) Limited (a subsidiary of the Target Company) since 2008 and Unisources since 2005. Mr. Wang received his bachelor's degree in law from the Southwest University of Political Science and Law in China in 1989. He obtained Master degree in Science at the Graduate School of Chinese Academy of Sciences in 1981.

CEO Compensation
  • Xiaochun's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Xiaochun's remuneration is lower than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the China Traditional Chinese Medicine Holdings management team in years:

1.9
Average Tenure
50
Average Age
  • The average tenure for the China Traditional Chinese Medicine Holdings management team is less than 2 years, this suggests a new team.
Management Team

Xian Wu

TITLE
Executive Chairman
AGE
57

Xiaochun Wang

TITLE
CEO, President
COMPENSATION
CN¥2M
AGE
50
TENURE
2.3 yrs

Wenming Yang

TITLE
VP & Executive Director
AGE
54
TENURE
0.5 yrs

Dongji Zhao

TITLE
VP & Joint Company Secretary
COMPENSATION
CN¥2M
AGE
50
TENURE
1.9 yrs

Xingkai Wang

TITLE
Chief Financial Officer
AGE
38
TENURE
0.5 yrs

Suet Lun Leung

TITLE
Joint Company Secretary
AGE
34
TENURE
2.7 yrs
Board of Directors Tenure

Average tenure and age of the China Traditional Chinese Medicine Holdings board of directors in years:

1.2
Average Tenure
52.5
Average Age
  • The average tenure for the China Traditional Chinese Medicine Holdings board of directors is less than 3 years, this suggests a new board.
Board of Directors

Xian Wu

TITLE
Executive Chairman
AGE
57
TENURE
6.3 yrs

Xiaochun Wang

TITLE
CEO, President
COMPENSATION
CN¥2M
AGE
50
TENURE
5.7 yrs

Wenming Yang

TITLE
VP & Executive Director
AGE
54
TENURE
0.5 yrs

Rong Xie

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥254K
AGE
66
TENURE
6.3 yrs

Ling Qin

TITLE
Independent Non-Executive Director
AGE
58
TENURE
0.3 yrs

Hailson Yu

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥254K
AGE
62
TENURE
5.6 yrs

Shanhua Yang

TITLE
Non-Executive Director
AGE
51
TENURE
1.3 yrs

Kaipin Kui

TITLE
Non Executive Director
COMPENSATION
CN¥146K
AGE
33
TENURE
1.1 yrs

Binghua Yang

TITLE
Non-Executive Director
AGE
37
TENURE
0.5 yrs

Kan Wang

TITLE
Non-Executive Director
AGE
33
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • China Traditional Chinese Medicine Holdings insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
31. Mar 19 Sell Xiaochun Wang Individual 29. Mar 19 29. Mar 19 -110,000,000 HK$4.98 HK$-547,800,047
18. Oct 18 Buy Xiaochun Wang Individual 16. Oct 18 16. Oct 18 3,266,000 HK$4.80 HK$15,676,808
X
Management checks
We assess China Traditional Chinese Medicine Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. China Traditional Chinese Medicine Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

570 News

Simply Wall St News

Is China Traditional Chinese Medicine Holdings Co. Limited's (HKG:570) Growth Strong Enough To Justify Its June Share Price?

But, since China Traditional Chinese Medicine Holdings is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 11.18x and expected year-on-year earnings growth of 16% give China Traditional Chinese Medicine Holdings a very low PEG ratio of 0.70x. … So, when we include the growth factor in our analysis, China Traditional Chinese Medicine Holdings appears relatively cheap , based on the fundamentals.

Simply Wall St -

Do You Know What China Traditional Chinese Medicine Holdings Co. Limited's (HKG:570) P/E Ratio Means?

View our latest analysis for China Traditional Chinese Medicine Holdings How Do You Calculate China Traditional Chinese Medicine Holdings's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for China Traditional Chinese Medicine Holdings: P/E of 11.37 = CN¥3.39 (Note: this is the share price in the reporting currency, namely, CNY ) ÷ CN¥0.30 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … The Verdict On China Traditional Chinese Medicine Holdings's P/E Ratio China Traditional Chinese Medicine Holdings trades on a P/E ratio of 11.4, which is fairly close to the HK market average of 10.9.

Simply Wall St -

Some China Traditional Chinese Medicine Holdings (HKG:570) Shareholders Are Down 46%

During the unfortunate twelve months during which the China Traditional Chinese Medicine Holdings share price fell, it actually saw its earnings per share (EPS) improve by 13%. … We'd be remiss not to mention the difference between China Traditional Chinese Medicine Holdings's total shareholder return (TSR) and its share price return. … Its history of dividend payouts mean that China Traditional Chinese Medicine Holdings's TSR, which was a 45% drop over the last year, was not as bad as the share price return.

Simply Wall St -

Do Insiders Own Shares In China Traditional Chinese Medicine Holdings Co. Limited (HKG:570)?

See our latest analysis for China Traditional Chinese Medicine Holdings SEHK:570 Ownership Summary, May 15th 2019 What Does The Institutional Ownership Tell Us About China Traditional Chinese Medicine Holdings? … Insider Ownership Of China Traditional Chinese Medicine Holdings While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. … I can report that insiders do own shares in China Traditional Chinese Medicine Holdings Co.

Simply Wall St -

How Much Are China Traditional Chinese Medicine Holdings Co. Limited (HKG:570) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in China Traditional Chinese Medicine Holdings Co. … The Last 12 Months Of Insider Transactions At China Traditional Chinese Medicine Holdings. … The President, Xiaochun Wang, made the biggest insider sale in the last 12 months.

Simply Wall St -

China Traditional Chinese Medicine Holdings Co. Limited (HKG:570): What We Can Expect From This Growth Stock

After China Traditional Chinese Medicine Holdings Co. … Limited's (HKG:570) earnings announcement in December 2018, … the consensus outlook from analysts appear fairly confident,

Simply Wall St -

Is Now The Time To Put China Traditional Chinese Medicine Holdings (HKG:570) On Your Watchlist?

In contrast to all that, I prefer to spend time on companies like China Traditional Chinese Medicine Holdings (HKG:570), which has not only revenues, but also profits. … See our latest analysis for China Traditional Chinese Medicine Holdings. … While China Traditional Chinese Medicine Holdings did well to grow revenue over the last year, EBIT margins were dampened at the same time.

Simply Wall St -

What Should Investors Know About China Traditional Chinese Medicine Holdings Co. Limited's (HKG:570) Future?

The latest earnings release China Traditional Chinese Medicine Holdings Co. … Limited's (HKG:570) announced in December 2018a

Simply Wall St -

All You Need To Know About China Traditional Chinese Medicine Holdings Co. Limited's (HKG:570) Financial Health

Mid-caps stocks, like China Traditional Chinese Medicine Holdings Co. … Today we will look at 570’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … View our latest analysis for China Traditional Chinese Medicine Holdings

Simply Wall St -

A Spotlight On China Traditional Chinese Medicine Holdings Co. Limited's (HKG:570) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of China Traditional Chinese Medicine Holdings Co.

Simply Wall St -

570 Company Info

Description

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 extraction of Chinese medicinal herbs; preparation of traditional Chinese medicines; trading of pharmaceutical products; provision of traditional Chinese medical consultation services; and operation of pharmacies. 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.

Details
Name: China Traditional Chinese Medicine Holdings Co. Limited
570
Exchange: SEHK
Founded:
HK$18,984,972,982
5,035,801,852
Website: http://www.china-tcm.com.cn
Address: China Traditional Chinese Medicine Holdings Co. Limited
Ronggui high tech Park Keyuan Road,
Shunde District,
Foshan,
Guangdong Province, China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 570 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 27. May 1993
SHSC 570 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 27. May 1993
SZSC 570 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 27. May 1993
Number of employees
Current staff
Staff numbers
14,169
China Traditional Chinese Medicine Holdings employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 12:34
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/04/29
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.