Beijing Tong Ren Tang Chinese Medicine Co., Ltd. (3613) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

The United Laboratories International Holdings Ltd.

Beijing Tong Ren Tang Chinese Medicine Co., Ltd.

Grand Pharmaceutical Group Ltd.

Simcere Pharmaceutical Group Ltd.

Hygeia Healthcare Holdings Co., Ltd.

Luye Pharma Group Ltd.

SSY Group Ltd.

China Traditional Chinese Medicine Holdings Co. Ltd.

Shanghai Pharmaceuticals Holding Co., Ltd.

HUTCHMED (China) Ltd.

Keymed Biosciences, Inc.

Why is Beijing Tong Ren Tang Chinese Medicine Co., Ltd. ?

High Management Efficiency with a high ROE of 19.94%

Company has very low debt and has enough cash to service the debt requirements

Healthy long term growth as Net Sales has grown by an annual rate of 28.67% and Operating profit at 36.57%

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 710.31 MM
ROCE(HY) Lowest at 9.61%
RAW MATERIAL COST(Y) Grown by 19.13% (YoY)

With ROE of 12.55%, it has a Attractive valuation with a 1.79 Price to Book Value

Over the past year, while the stock has generated a return of -17.17%, its profits have risen by 14.6% ; the PEG ratio of the company is 1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.17% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Beijing Tong Ren Tang Chinese Medicine Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

No Data Found

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.67%

EBIT Growth (5y)

36.57%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.34

Tax Ratio

17.26%

Dividend Payout Ratio

77.98%

Pledged Shares

Institutional Holding

ROCE (avg)

86.34%

ROE (avg)

19.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.79

EV to EBIT

8.82

EV to EBITDA

8.73

EV to Capital Employed

2.52

EV to Sales

4.15

PEG Ratio

0.97

Dividend Yield

0.06%

ROCE (Latest)

28.62%

ROE (Latest)

12.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 11,377.69

DIVIDEND PAYOUT RATIO(Y)

Highest at 190.82%

DIVIDEND PER SHARE(HY)

Highest at HKD 3.21

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 710.31 MM

ROCE(HY)

Lowest at 9.61%

RAW MATERIAL COST(Y)

Grown by 19.13% (YoY

OPERATING PROFIT(Q)

Lowest at HKD 259.52 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 34.53 %

PRE-TAX PROFIT(Q)

Lowest at HKD 223.93 MM

NET PROFIT(Q)

Lowest at HKD 162.35 MM

EPS(Q)

Lowest at HKD 0.19

Here's what is working for Beijing Tong Ren Tang Chinese Medicine Co., Ltd.

Interest Coverage Ratio

Highest at 11,377.69

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Dividend per share

Highest at HKD 3.21

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (HKD)

Dividend Payout Ratio

Highest at 190.82%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 50.31 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Beijing Tong Ren Tang Chinese Medicine Co., Ltd.

Operating Cash Flow

Lowest at HKD 710.31 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Operating Profit

Lowest at HKD 259.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 34.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 223.93 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 162.35 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.19

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 19.13% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales