Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

China Traditional Chinese Medicine / Equity Bottom-Up

China Traditional Chinese Medicine (570 HK)

<p>China TCM has issued a positive profit warning (attached) for the year ended 31 December 2015:</p><ul>
<li>Increase in net income of "not less than 50%" over 2014's RMB413 million. Consensus expectations for 2015 are RMB624 million (+51%), suggesting at least in-line or possibly better results.</li>
<li>Management noted the acquisition of Jiangyin Tianjiang Pharmaceutical and a gain on the sale of equity in a subsidiary as the drivers, but did not provide details.</li>
<li>No comment on revenue: stable organic growth had been…</li>
</ul>

China TCM has issued a positive profit warning (attached) for the year ended 31 December 2015:
Increase in net income of "not less than 50%" over 2014's RMB413 million. Consensus expectations for 2015 are RMB624 million (+51%), suggesting at least in-line or possibly better results.
Management noted the acquisition of Jiangyin Tianjiang Pharmaceutical and a gain on the sale of equity in a subsidiary as the drivers, but did not provide details.
No comment on revenue: stable organic growth had been…


Tong Ren Tang Technologies Co, Ltd. (1666 HK)

Beijing Tong Ren Tang Chinese Medicine (3613 HK)

Positive Profit Warning Suggests In-Line Results