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Tong Ren Tang Technologies Co Ltd (1666) Fair Value & Analysis

Healthcare · HK · Market cap HK$4.1B

TR Tong Ren Tang Technologies Co Ltd 1666 · HK
PriceHK$3.26
Fair ValueHK$7.92
Upside+142.9%
Quality67/100
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Mixed Growth
Thin margins · 6.1% net margin
Low debt · generates free cash flow
5.63% dividend yield
Ranks above peers (9/15)
Narrow moat 34/100
Evidence: Medium Range HK$5.94 – HK$9.90 Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 6 days ago

Fair value updated Aug 13, 2026, revised from HK$7.91 to HK$7.92 (+0.1%) since Aug 12, 2026. Share price −8.4% over the past month.

A solid business, screening 143% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$5.94). The market is more pessimistic than our downside scenario.
  • Solid quality (67/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$7.58 HK$3.13 Fair Value HK$7.92 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$3.13 – HK$7.58 · fair‑value band HK$5.94 – HK$9.90 · the HK$3.26 price screens below the HK$7.92 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Tong Ren Tang Technologies Co Ltd (1666) currently trades at HK$3.26, while our model-based Fair Value estimate is HK$7.92, implying the stock looks roughly 142.9% undervalued today. The Quality Score stands at 67/100 (solid quality), in the Healthcare sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Tong Ren Tang Technologies Co Ltd generated revenue of HK$6.5B at a net margin of 6.1%. Revenue declined 14.5% year over year. It earns a return on equity of 6.5%. The balance sheet holds a net cash position of HK$2.5B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$5.94 (bear case) to HK$9.90 (bull case); at HK$3.26, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 37% below its 52-week high and 6% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -20% fair-value upside, at 143%, 1666 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$15.70 HK$24.00 HK$36.87 80
Residual Income HK$4.40 HK$4.50 HK$4.36 76
Rev-Margin DCF HK$10.71 HK$15.10 HK$20.58 74
All 26 models by family
DCF Models
FCF DCF HK$15.71 HK$24.57 HK$38.69 38
Owner Earnings HK$8.13 HK$11.89 HK$17.87 31
5Y Revenue Exit HK$10.71 HK$15.03 HK$20.56 39
5Y EBITDA Exit HK$12.61 HK$18.82 HK$26.28 41
5Y P/E Exit HK$10.11 HK$13.84 HK$17.84 38
10Y Revenue Exit HK$12.20 HK$16.72 HK$22.99 36
10Y EBITDA Exit HK$13.60 HK$19.39 HK$27.51 37
10Y P/E Exit HK$12.00 HK$15.89 HK$20.84 35
Earnings-Based
Graham-Dodd HK$2.10 HK$8.56 HK$11.65 54
Lynch FV HK$2.14 HK$3.06 HK$3.98 50
PEG = 1.0 HK$2.14 HK$3.06 HK$3.98 46
EPV HK$7.09 HK$7.80 HK$8.42 59
Dividend Discount
Gordon GGM HK$1.57 HK$3.12 HK$4.72 70
DDM Multi-Stage HK$1.57 HK$2.70 HK$3.29 61
Multiples
P/E Multiple HK$5.11 HK$6.81 HK$8.51 63
P/S Multiple HK$3.94 HK$5.26 HK$6.57 58
P/B Multiple HK$3.94 HK$5.26 HK$6.57 55
EV/EBIT HK$10.52 HK$13.19 HK$15.85 53
EV/EBITDA HK$11.85 HK$14.96 HK$18.06 54
EV/Revenue HK$8.24 HK$10.68 HK$13.12 43
Asset-Based
NCAV (Graham) HK$2.87 HK$3.84 HK$5.73 50
Growth DCF
Growth DCF HK$15.70 HK$24.00 HK$36.87 80
Rev-Margin DCF HK$10.71 HK$15.10 HK$20.58 74
Economic Profit
Residual Income HK$4.40 HK$4.50 HK$4.36 76
ROIC Compounder HK$7.50 HK$9.05 HK$11.05 72
Growth Earnings
Growth-Adj P/E HK$3.83 HK$5.47 HK$7.11 68

Widest divergence: DCF Models (HK$15.89) versus Dividend Discount (HK$2.70). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$6.5B
Revenue growth (YoY) -14.5%
Net margin 6.1%
Return on equity 6.5%
Free cash flow HK$1.4B FY2025
P/E ratio 8.9 as of Jul 2, 2026
More key figures
Operating margin 8.5%
EPS (TTM) HK$0.2600
Dividend yield 5.6%
EPS growth (YoY) -38.1%
Net cash HK$2.5B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 67/100

Of which business quality 68 · Market factors (momentum, volatility) 34

Profitability 32
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 93
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 19
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Tong Ren Tang Technologies Co. Ltd., together with its subsidiaries, produces and distributes Chinese medicine products in Mainland China and Hong Kong. It operates through three segments: The Company; Tong Ren Tang Chinese Medicine; and Others.

Full company description

Tong Ren Tang Technologies Co. Ltd., together with its subsidiaries, produces and distributes Chinese medicine products in Mainland China and Hong Kong. It operates through three segments: The Company; Tong Ren Tang Chinese Medicine; and Others. The company develops, cultivates, processes, and purchases Chinese medicinal raw materials; retails and wholesales Chinese medicine products and healthcare products. It also offers ointments, healthcare products, tea drinks, food, foot care products, biological products, western medicine, and cosmetics. In addition, it provides medical research and development; advertisement; and Chinese medical consultations and treatments. Further, the company produces and processes biochemical products; extracts and processes plants; and offers medical services. Tong Ren Tang Technologies Co. Ltd. was founded in 1669 and is based in Beijing, the People's Republic of China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tong Ren Tang Technologies Co Ltd reported revenue of HK$6.5B in FY2025 versus HK$5.4B in FY2021, a compound +4.7%/yr. Reported net income was HK$396M in FY2025, compounding −6.0%/yr from FY2021.

Growth Quality 68/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$6.5B
Latest YoY
−10.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.7%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.1%
Avg. growth/yr (26Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.4%
Revenue +4.7%/yr
FY21 HK$5.4B
FY22 HK$6.0B
FY23 HK$6.8B
FY24 HK$7.3B
FY25 HK$6.5B
Net income −6.0%/yr
FY21 HK$507M
FY22 HK$583M
FY23 HK$590M
FY24 HK$522M
FY25 HK$396M
Character of growth · EPS growth decomposed (2014-2025) −0.6 % p.a.
Revenue per share +6.1 pp

of which total revenue +6.1 pp · buybacks/dilution +0.0 pp

EBIT margin −4.6 pp
Tax rate −0.4 pp
Residual (interest, one-offs) −1.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Tong Ren Tang Technologies Co Ltd Fair Value". https://www.fairvalue-calculator.com/stock/1666

Peer Group

Drug Manufacturers - General · 75 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 67 · Above median
Fair Value upside +143% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 4% · Below median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 8% · Below median
Revenue growth -15% · Bottom 25%
Dividend yield (TTM) 5.5% · Top 25%
Debt / equity 0.20× · Higher than median

Valuation Multiples vs Drug Manufacturers - General median · lower = cheaper

P/E (TTM) 8.9× · Cheaper than 75% of peers
P/B 0.56× · Cheaper than 75% of peers
P/S (TTM) 0.64× · Cheaper than 75% of peers
P/FCF 0.4× · Cheaper than median
EV/EBITDA 0.9× · Cheaper than 75% of peers
PEG 1.88× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 0
FUTURE0 · sector 25
PAST26 · sector 52
HEALTH90 · sector 94
DIVIDEND100 · sector 43

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Drug Manufacturers - General stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Eli Lilly and Company LLY $1,220 $389.47 -68%
Johnson & Johnson, JNJ $260.86 $169.04 -35%
AbbVie Inc ABBV $248.76 $67.72 -73%
Roche Holding 1RO €392.80 €240.14 -39%
Merck & Co MRK €115.42 €118.21 +2%
Novartis AG NVSN 2,742 MXN 1,964 MXN -28%
AstraZeneca PLC AZN $158.50 $127.32 -20%
Novo Nordisk A/S NOVOB kr 296.35 kr 409.46 +38%
Sanofi SNYN 770.00 MXN 1,041 MXN +35%
GSK plc GSKN 917.00 MXN 879.08 MXN -4%

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Frequently asked questions

Is Tong Ren Tang Technologies Co Ltd (1666) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$7.92 versus a price of HK$3.26, about +143% (undervalued).
What is the fair value of 1666?
Our model-based fair value for Tong Ren Tang Technologies Co Ltd is HK$7.92 (as of Aug 13, 2026), built from audited fundamentals. The current price: HK$3.26.
What is the quality score of 1666?
Tong Ren Tang Technologies Co Ltd has a Quality Score of 67/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Tong Ren Tang Technologies Co Ltd (1666)?
Tong Ren Tang Technologies Co Ltd reported trailing-twelve-month revenue of about HK$6.5B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1666?
The net profit margin of Tong Ren Tang Technologies Co Ltd is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does Tong Ren Tang Technologies Co Ltd pay a dividend?
Tong Ren Tang Technologies Co Ltd currently shows a dividend yield of about 5.63% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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