HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Tong Ren Tang Technologies / Equity Bottom-Up

<ul>
<li>Considering 23H1 high base, it can be understood that 24H1 achieved a low single-digit growth. If excluding gain on disposal of subsidiaries, net profit in 24H1 would have negative growth.</li>
<li>Mainland China contributed about 90% of total revenue, but an imminent risk is VBP, which will pose a challenge to the pricing autonomy of Tong Ren Tang’s OTC TCM drugs. </li>
<li>After absorbing the high base impact of 2023 this year, performance growth would return to double digits in 2025. Tong Ren Tang is undervalued. Reasonable valuation is P/E of 15.</li>
</ul>


Considering 23H1 high base, it can be understood that 24H1 achieved a low single-digit growth. If excluding gain on disposal of subsidiaries, net profit in 24H1 would have negative growth.
Mainland China contributed about 90% of total revenue, but an imminent risk is VBP, which will pose a challenge to the pricing autonomy of Tong Ren Tang’s OTC TCM drugs. 
After absorbing the high base impact of 2023 this year, performance growth would return to double digits in 2025. Tong Ren Tang is undervalued. Reasonable valuation is P/E of 15.


Tong Ren Tang Technologies (1666.HK) - Undervalued; Performance Will Rebound After a Brief Headwind

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 20th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba (9988 HK), Meituan (3690 HK).</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 20th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba (9988 HK), Meituan (3690 HK).


Hong Kong Connect Flows (Sep 20th): Alibaba, Meituan

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 13th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight flows for Alibaba, CCB, ICBC, Kuaishou Technology, Tencent, Meituan, HKEx.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of September 13th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight flows for Alibaba, CCB, ICBC, Kuaishou Technology, Tencent, Meituan, HKEx.


Hong Kong Connect Flows (Sep 13th): $1.5bn Inflows into Baba Post Inclusion

<ul>
<li>We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 9th.</li>
<li>The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.</li>
<li>We highlight the weekly Hong Kong connect flows for Tencent.</li>
</ul>


We analyze the weekly Hong Kong Connect flows with our data engine for holding position as of February 9th.
The top stocks by inflows and outflows were tabulated for all market, HSCEI, mid cap and s/mid cap groups.
We highlight the weekly Hong Kong connect flows for Tencent.


Hong Kong Connect Flows (Feb 9th): Tencent

<ul>
<li>The potential high-priced acquisition proposed by Wepon failed. In fact, Wepon is in a vicious circle. So, terminating the acquisition is not a bad thing for <a href="https://www.smartkarma.com/entities/consun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:1261:1" rel="noopener">Consun Pharmaceutical (1681 HK)</a>.</li>
<li>Consun kept positive momentum and its performance was strong in 22H1. Such growth is expected to continue after China reopens as non-COVID related medical demand returns to normal.</li>
<li>Considering its solid business performance and large cash balance, Consun is obviously undervalued. In our view, even without Wepon’s deal as the catalyst, Consun still has investment value.</li>
</ul>


The potential high-priced acquisition proposed by Wepon failed. In fact, Wepon is in a vicious circle. So, terminating the acquisition is not a bad thing for Consun Pharmaceutical (1681 HK).
Consun kept positive momentum and its performance was strong in 22H1. Such growth is expected to continue after China reopens as non-COVID related medical demand returns to normal.
Considering its solid business performance and large cash balance, Consun is obviously undervalued. In our view, even without Wepon’s deal as the catalyst, Consun still has investment value.


Consun Pharmaceutical (1681.HK) - Still Has Investment Value Even Without High-Priced Acquisition

Hong Kong

Beijing Tong Ren Tang Chinese Medicine Co., Ltd. is primarily involved in the manufacturing, retail, and wholesale of traditional Chinese medicine products and healthcare products, alongside offering Chinese medical consultation and treatment services. Key products include Angong Niuhuang Pill and Sporoderm broken Ganoderma Lucidum Spores Powder Capsules. The company is headquartered in Hong Kong and was established in 2004 as the overseas development platform for the renowned Tong Ren Tang brand, which originated in 1669.

Beijing Tong Ren Tang Chinese Medicine (3613 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Beijing Tong Ren Tang Chinese Medicine (3613 HK)

Tong Ren Tang Technologies (1666.HK) - Undervalued; Performance Will Rebound After a Brief Headwind

Tong Ren Tang saw low single-digit growth in 24H1. VBP poses a risk to pricing autonomy of OTC TCM drugs, but growth is expected to return to...

Xinyao (Criss) Wang

Hong Kong Connect Flows (Sep 20th): Alibaba, Meituan

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba (9988 HK), Meituan (3690 HK).

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Sep 13th): $1.5bn Inflows into Baba Post Inclusion

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, CCB, ICBC, Kuaishou Technology, Tencent,...

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Feb 9th): Tencent

We have analyzed southbound Hong Kong connect flows in the past week and highlighted Hong Kong connect flows for Tencent.

Ke Yan, CFA, FRM

Consun Pharmaceutical (1681.HK) - Still Has Investment Value Even Without High-Priced Acquisition

The high-priced acquisition of Consun was terminated. However, Consun has solid business performance and its growth would continue this year. The...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Tong Ren Tang Technologies (1666.HK) - Undervalued; Performance Will Rebound After a Brief Headwind

​Tong Ren Tang saw low single-digit growth in 24H1. VBP poses a risk to pricing autonomy of OTC TCM drugs, but growth is expected to return to...

Xinyao (Criss) Wang

Hong Kong Connect Flows (Sep 20th): Alibaba, Meituan

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba (9988 HK), Meituan (3690 HK).

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Sep 13th): $1.5bn Inflows into Baba Post Inclusion

We analyzed southbound Hong Kong connect flows in the past week and highlighted flows for Alibaba, CCB, ICBC, Kuaishou Technology, Tencent,...

Ke Yan, CFA, FRM

Hong Kong Connect Flows (Feb 9th): Tencent

We have analyzed southbound Hong Kong connect flows in the past week and highlighted Hong Kong connect flows for Tencent.

Ke Yan, CFA, FRM

Consun Pharmaceutical (1681.HK) - Still Has Investment Value Even Without High-Priced Acquisition

The high-priced acquisition of Consun was terminated. However, Consun has solid business performance and its growth would continue this year. The...

Xinyao (Criss) Wang

Tong Ren Tang saw low single-digit growth in 24H1. VBP poses a risk to pricing autonomy of OTC TCM drugs, but growth is expected to return to...