Hong Kong/China M&A/Events

Hong Kong/China M&A/Events

TCM (570 HK): Profit Warning Is No Biggie

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Quiddity Research
Aug 22, 2024
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  • China Traditional Chinese Medicine (570 HK) flagged a 60-70% drop in its 1H24E net profit versus 1H23, due to reduced sales/profit of TCM concentrate, bad debt provisions, and remedial taxes.

  • MAC triggers? No - Sinopharm won't exercise such right, even if one was ostensibly triggered. I'd be surprised if Sinopharm wasn't fully aware of TCM's underlying operations.

  • Get involved on any dips today. Trading wide at a 11.7%/38.7% gross/annualised spread, assuming Dec-end payment.

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