Chinese traditional medicine maker Tong Ren Tang profit falls on weaker demand

Beijing Tong Ren Tang Chinese Medicine

28/08/2026 12:22

Overview
Hong Kong Chinese medicine maker's interim revenue fell 21% yr/yr to HK$601.9 mln
Profit attributable to owners declined 15.6% for the half-year period
Company cites weak demand and tighter distribution for proprietary products as factors

Outlook
Company did not provide specific financial guidance or forecasts for the current quarter or full year

Result Drivers
TIGHTER DISTRIBUTION - Co said wholesale revenue from proprietary products fell 27.8% yr/yr due to proactive tightening of distribution channels
WEAK DEMAND - Co cited relatively weak demand in the Chinese drugs and herbs category, with retail sales in the segment down 5.1% yr/yr
RETAIL GROWTH IN HONG KONG - Co said Hong Kong retail revenue for proprietary products rose 5% yr/yr, mainly due to expanded retail network

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
HK$601.89 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Beijing Tong Ren Tang Chinese Medicine Co Ltd is HK$10.25, about 57.7% above its August 28 closing price of HK$6.50
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)