China Traditional Chinese Medicine H1 revenue falls on decline across segments
China Traditional Chinese Medicine H1 revenue falls on decline across segments
Overview
China traditional medicine maker's half-year total revenue fell 27% yr/yr
Company posted RMB 776.3 mln net loss attributable for the period
Sales declined across all major business segments, especially concentrated granules and herb integration
Outlook
Company did not provide specific financial guidance or outlook commentary in the press release
Result Drivers
SEGMENT SALES DECLINES - Sales fell across all major business segments, mainly due to the decline in terminal demand and the decrease in sales volume, especially concentrated granules and herb integration
CONCENTRATED GRANULES PRESSURE – Revenue fell 35.4% to RMB1.93 bln as policy adjustments and market changes weakened terminal demand and sales volumes
HERBS BUSINESS DOWNSIZING – Chinese medicinal-herbs integration revenue fell 57.5% to RMB190 mln as the group cut high-risk activities and market prices declined
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Total Revenue |
| RMB 5.44 bln |
|
H1 Net Loss Attributable |
| RMB 776.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy."
Wall Street's median 12-month price target for China Traditional Chinese Medicine Holdings Co Ltd is HK$1.42, about 2.2% above its August 28 closing price of HK$1.39
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Aug 28 - Chinese traditional medicine maker Tong Ren Tang profit falls on weaker demand
Aug 26 - China's Zhongzhi Pharmaceutical H1 revenue falls 10%
Aug 28 - China's Dawnrays Pharmaceutical H1 revenue falls on lower procurement prices
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)
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