SHSC:570

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China Traditional Chinese Medicine Holdings

Executive Summary

China Traditional Chinese Medicine Holdings Co. More Details

Rewards

Trading at 38% below our estimate of its fair value

Earnings are forecast to grow 12.62% per year

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

-4.1%

570

-0.4%

HK Pharmaceuticals

-0.5%

HK Market


1 Year Return

-8.1%

570

3.0%

HK Pharmaceuticals

7.6%

HK Market

Return vs Industry: 570 underperformed the Hong Kong Pharmaceuticals industry which returned 3% over the past year.

Return vs Market: 570 underperformed the Hong Kong Market which returned 7.6% over the past year.


Shareholder returns

570IndustryMarket
7 Day-4.1%-0.4%-0.5%
30 Day-0.3%-2.8%5.3%
90 Day-1.5%-10.7%4.2%
1 Year-6.9%-8.1%4.7%3.0%11.9%7.6%
3 Year-14.9%-19.9%-5.1%-10.6%-1.2%-11.4%
5 Year-30.2%-36.5%30.7%20.3%29.7%7.9%

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

No news available

Valuation

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

38.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 570 (HK$3.3) 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 (9.6x) compared to the HK Pharmaceuticals industry average (10.7x).

PE vs Market: 570 is good value based on its PE Ratio (9.6x) 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 (13.7% 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 (-11.9%).


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?

4.36%

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 ($USD347.96K) is below average for companies of similar size in the Hong Kong market ($USD562.86K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Xian Wu
Chairman of the Board7.75yrsCN¥2.53mno data
Xiaochun Wang
CEO, President3.67yrsCN¥2.29m5.36%
CN¥ 891.0m
Wenming Yang
VP & Executive Director1.92yrsCN¥2.39mno data
Xingkai Wang
Chief Financial Officer1.92yrsno datano data
Dongji Zhao
VP, Joint Company Secretary & Chief Legal Advisor1.08yrsCN¥1.56mno data
Suet Lun Leung
Joint Company Secretary4.08yrsno datano data

2.8yrs

Average Tenure

52yo

Average Age

Experienced Management: 570's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xian Wu
Chairman of the Board7.75yrsCN¥2.53mno data
Xiaochun Wang
CEO, President3.67yrsCN¥2.29m5.36%
CN¥ 891.0m
Wenming Yang
VP & Executive Director1.92yrsCN¥2.39mno data
Rong Xie
Independent Non-Executive Director7.75yrsCN¥264.00kno data
Ling Qin
Independent Non-Executive Director1.75yrsCN¥245.00kno data
Tze Shan Yu
Independent Non-Executive Director7yrsCN¥273.00kno data
Shanhua Yang
Non-Executive Director2.67yrsno datano data
Kaipin Kui
Non Executive Director2.5yrsCN¥146.00kno data
Weidong Li
Independent Non-Executive Director1.75yrsCN¥245.00kno data
Binghua Yang
Non-Executive Director1.92yrsno datano data
Kan Wang
Non-Executive Director1.92yrsno datano data
Ru Li
Non-Executive Director1.75yrsno datano 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: SHSC
  • 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

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/26 10:11
End of Day Share Price2020/11/25 00:00
Earnings2020/06/30
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.