OTCPK:TGRN.F

Stock Analysis Report

Executive Summary

Tong Ren Tang Technologies Co. Ltd., together with its subsidiaries, manufactures and sells Chinese medicines in Mainland China, Hong Kong, and internationally.

Snowflake

Fundamentals

Undervalued with excellent balance sheet and pays a dividend.

Share Price & News

How has Tong Ren Tang Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

TGRN.F

-0.1%

US Pharmaceuticals

1.0%

US Market


1 Year Return

n/a

TGRN.F

-6.2%

US Pharmaceuticals

6.7%

US Market

Return vs Industry: Insufficient data to determine how TGRN.F performed against the US Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how TGRN.F performed against the US Market.


Shareholder returns

TGRN.FIndustryMarket
7 Day0%-0.1%1.0%
30 Day0%-0.5%-1.8%
90 Dayn/a-2.6%-1.8%
1 Yearn/a-3.9%-6.2%9.1%6.7%
3 Yearn/a17.4%9.1%46.1%36.6%
5 Yearn/a28.0%14.5%66.9%48.6%

Price Volatility Vs. Market

How volatile is Tong Ren Tang Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Tong Ren Tang Technologies undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: TGRN.F ($1.22) is trading below our estimate of fair value ($11.3)

Significantly Undervalued: TGRN.F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TGRN.F is good value based on its PE Ratio (13.5x) compared to the Pharmaceuticals industry average (16.7x).

PE vs Market: TGRN.F is good value based on its PE Ratio (13.5x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: TGRN.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: TGRN.F is good value based on its PB Ratio (1.5x) compared to the US Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is Tong Ren Tang Technologies forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TGRN.F's forecast earnings growth (7.4% per year) is above the savings rate (2.7%).

Earnings vs Market: TGRN.F's earnings (7.4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: TGRN.F's revenue (4.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: TGRN.F's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: TGRN.F's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has Tong Ren Tang Technologies performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: TGRN.F's earnings have grown by 8.2% per year over the past 5 years.

Accelerating Growth: TGRN.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: TGRN.F had negative earnings growth (-8.1%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (24.3%).


Return on Equity

High ROE: TGRN.F's Return on Equity (13%) is considered low.


Return on Assets

ROA vs Industry: TGRN.F's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

ROCE Improving: TGRN.F's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Tong Ren Tang Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: TGRN.F's short term assets (CN¥7.6B) exceeds its short term liabilities (CN¥1.6B)

Long Term Liabilities: TGRN.F's short term assets (7.6B) exceeds its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: TGRN.F's debt to equity ratio (12.9%) is considered satisfactory

Reducing Debt: TGRN.F's debt to equity ratio has increased from 3.5% to 12.9% over the past 5 years.

Debt Coverage: TGRN.F's debt is well covered by operating cash flow (121.5%).

Interest Coverage: TGRN.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: TGRN.F has a high level of physical assets or inventory.

Debt Coverage by Assets: TGRN.F's debt is covered by short term assets (assets are 7.765350x debt).


Next Steps

Dividend

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

2.72%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: TGRN.F's dividend (2.72%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: TGRN.F's dividend (2.72%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: TGRN.F's dividends per share have been stable in the past 10 years.

Growing Dividend: TGRN.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (36.7%), TGRN.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TGRN.F's dividends in 3 years are forecast to be well covered by earnings (24.6% payout ratio).


Next Steps

Management

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

11.6yrs

Average management tenure


CEO

Yu Wang (48yo)

11.6yrs

Tenure

CN¥2,236,000

Compensation

Mr. Yu Wei Wang serves as Secretary of the Board at Aerospace Hi-Tech Holding Group Co., Ltd. (alternate name: Harbin Fenghua-Aerospace Hi-Tech Co. Ltd.). Mr. Wang has been the General Manager at Tong Ren  ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Yu's total compensation is reasonable compared to companies of similar size in the US market.

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


Management Age and Tenure

11.6yrs

Average Tenure

50yo

Average Age

Experienced Management: TGRN.F's management team is seasoned and experienced (11.6 years average tenure).


Board Age and Tenure

1.6yrs

Average Tenure

52.5yo

Average Age

Experienced Board: TGRN.F's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCN¥215,44405 Sep 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares202,000
Max PriceCN¥1.07
BuyCN¥4,113,34602 Aug 19
Colonial First State Asset Management (Australia) Limited
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Shares3,425,000
Max PriceCN¥1.20
SellCN¥1,911,42414 Jun 19
Colonial First State Asset Management (Australia) Limited
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Shares1,516,000
Max PriceCN¥1.26
BuyCN¥1,441,51314 May 19
Colonial First State Asset Management (Australia) Limited
EntityCompany
Shares1,106,000
Max PriceCN¥1.30
BuyCN¥17,68611 Jan 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares14,000
Max PriceCN¥1.26
SellCN¥3,79111 Jan 19
Credit Suisse Asset Management (Switzerland)
EntityCompany
Shares3,001
Max PriceCN¥1.26
SellCN¥1,213,59511 Jan 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares960,662
Max PriceCN¥1.26

Ownership Breakdown


Management Team

  • Yu Wang (48yo)

    GM & Executive Director

    • Tenure: 11.6yrs
    • Compensation: CN¥2.24m
  • Jing Zhang (46yo)

    Company Secretary

    • Tenure: 11.8yrs
  • Jian Bai (59yo)

    General Auditor

    • Tenure: 0yrs
    • Compensation: CN¥1.24m
  • Jia Zhi Fang (52yo)

    Chief Accountant & Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥855.00k
  • Hai Ou Gu (53yo)

    Chairman of the Board

    • Tenure: 0.3yrs
  • Ning Huang (59yo)

    Executive Director

    • Tenure: 1.6yrs
  • Le Wu (43yo)

    Executive Director

    • Tenure: 1.6yrs
  • Qian Wu (45yo)

    Executive Director

    • Tenure: 1.6yrs

Board Members

  • Stephen Ting (65yo)

    Independent Non Executive Director

    • Tenure: 19yrs
    • Compensation: CN¥203.00k
  • Yu Wang (48yo)

    GM & Executive Director

    • Tenure: 11.6yrs
    • Compensation: CN¥2.24m
  • Jia Zhi Fang (52yo)

    Chief Accountant & Executive Director

    • Tenure: 10.3yrs
    • Compensation: CN¥855.00k
  • Eliza Chan (63yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥102.00k
  • Hai Ou Gu (53yo)

    Chairman of the Board

    • Tenure: 0.3yrs
  • Ning Huang (59yo)

    Executive Director

    • Tenure: 1.6yrs
  • Le Wu (43yo)

    Executive Director

    • Tenure: 1.6yrs
  • Qian Wu (45yo)

    Executive Director

    • Tenure: 1.6yrs
  • Yuan Jing Zhan (74yo)

    Independent Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: CN¥50.00k
  • Li Su (39yo)

    Chief Supervisor

    • Tenure: 1.3yrs

Company Information

Tong Ren Tang Technologies Co. Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tong Ren Tang Technologies Co. Ltd.
  • Ticker: TGRN.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$9.414b
  • Listing Market Cap: HK$1.200b
  • Shares outstanding: 1.28b
  • Website: https://www.tongrentangkj.com

Number of Employees


Location

  • Tong Ren Tang Technologies Co. Ltd.
  • No. 20 Nansanhuan Zhonglu
  • Fengtai District
  • Beijing
  • 100079
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TGRN.FOTCPK (Pink Sheets LLC)YesForeign Shares-Foreign ListedUSUSDOct 2000
1666SEHK (The Stock Exchange of Hong Kong Ltd.)YesForeign Shares-Foreign ListedHKHKDOct 2000
TNGDB (Deutsche Boerse AG)YesForeign Shares-Foreign ListedDEEUROct 2000
1666SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesForeign Shares-Foreign ListedHKHKDOct 2000

Biography

Tong Ren Tang Technologies Co. Ltd., together with its subsidiaries, manufactures and sells Chinese medicines in Mainland China, Hong Kong, and internationally. It offers its products in the form of granul ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:46
End of Day Share Price2019/08/02 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.