China Medicine Corporation (CHME)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
China Medicine Corporation (CHME) trades at $0.02 with AI Score 52/100 (Grade B). China Medicine Corporation specializes in the production and distribution of pharmaceutical products, including traditional Chinese medicine and medical devices. Market cap: $486,097, Sector: Healthcare.
Price live · AI analysis from Jun 15, 2026Analyst Coverage for CHME: CHME does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates CHME against Healthcare peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
CHME: the 1 perspectives are evenly split.
How is this calculated? →China Medicine Corporation (CHME) Healthcare & Pipeline Overview
China Medicine Corporation is a key player in China's healthcare distribution sector, focusing on prescription and over-the-counter drugs, traditional Chinese medicine, and medical devices, leveraging a robust sales network to cater to diverse medical needs.
What Is the Investment Thesis for CHME?
China Medicine Corporation's investment thesis is underpinned by its strong market presence in the growing Chinese healthcare sector, characterized by increasing demand for pharmaceutical products. With a P/E ratio of 0.28, the company is valued attractively compared to industry peers, indicating potential for price appreciation. The company's diverse product range, including traditional Chinese medicine and modern pharmaceuticals, positions it well to capitalize on the rising trend of integrative medicine. Additionally, the company’s gross margin of 29.3% reflects operational efficiency, while a profit margin of 2.7% suggests room for improvement in cost management. As healthcare spending in China continues to grow, driven by an aging population and rising health awareness, China Medicine Corporation is poised to benefit from these trends. Key growth catalysts include expanding its product offerings, enhancing distribution capabilities, and potential regulatory approvals for new drugs. However, investors may want to evaluate the inherent risks associated with the OTC market and the company's reliance on the domestic market.
Based on FMP financials and quantitative analysis
CHME Key Highlights
- P/E ratio of 0.28 indicates a low valuation compared to industry standards.
- Gross margin of 29.3% demonstrates the company's operational efficiency.
- Profit margin of 2.7% reflects the company's profitability amidst competitive pressures.
- The company employs 281 individuals, contributing to its operational capacity.
- No dividend yield, indicating a focus on reinvestment rather than shareholder returns.
Who Are CHME's Competitors?
CHME is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HCM HUTCHMED (China) Limited | $11.72 | +2.45% | $2.04B | 42 |
| CGEN Compugen Ltd. | $2.37 | +3.73% | $223.62M | 76 |
| NVS Novartis AG | $155.20 | -2.94% | $296.14B | 57 |
| BMY Bristol-Myers Squibb Company | $56.70 | -2.46% | 116B | 88 |
| SNY Sanofi | $42.61 | -1.27% | $102.45B | 58 |
| CWB State Street SPDR Bloomberg Convertible Securities ETF | $105.34 | +0.92% | $4.62B | 47 |
| TDV ProShares - S&P Technology Dividend Aristocrats ETF | $100.89 | +1.33% | $293.21M | 47 |
| DAUG FT Vest U.S. Equity Deep Buffer ETF - August | $46.97 | +0.26% | $363.40M | 47 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CHME's Key Strengths?
- Diverse product offerings addressing a wide range of health issues.
- Strong sales network facilitating effective distribution.
- Established brand presence in the Chinese healthcare market.
- Expertise in traditional Chinese medicine enhancing product appeal.
What Are CHME's Weaknesses?
- Limited international market presence compared to global competitors.
- Dependence on the domestic market for revenue generation.
- Low profit margin indicating potential cost management challenges.
- Lack of dividend payments may deter income-focused investors.
What Could Drive CHME Stock Higher?
- Potential regulatory approvals for new pharmaceutical products.
- Expansion of product offerings to meet growing consumer demand.
- Strengthening of distribution network to enhance market reach.
- Strategic partnerships aimed at product development and innovation.
- Increasing focus on traditional Chinese medicine in product development.
What Are the Key Risks for CHME?
- Regulatory challenges impacting product approvals and market entry.
- Intense competition from both domestic and international pharmaceutical companies.
- Economic fluctuations affecting consumer spending on healthcare products.
- Supply chain disruptions impacting product availability.
What Are the Growth Opportunities for CHME?
- Expansion of Product Offerings: China Medicine Corporation can enhance its market position by expanding its product offerings, particularly in high-demand therapeutic areas such as oncology and chronic disease management. The global oncology drug market is projected to reach $200 billion by 2025, presenting a significant opportunity for the company to introduce new products and capture market share.
- Increasing Demand for Traditional Chinese Medicine: There is a growing trend towards traditional Chinese medicine (TCM) as consumers seek holistic and natural treatment options. The TCM market in China is expected to grow at a CAGR of 10% through 2025. China Medicine Corporation's existing portfolio aligns well with this trend, allowing the company to leverage its expertise in TCM to meet rising consumer demand.
- Strategic Partnerships and Collaborations: Forming strategic partnerships with healthcare providers and research institutions can enhance China Medicine Corporation's product development capabilities and market reach. Collaborations could facilitate access to new technologies and innovative treatment options, positioning the company for long-term growth in the competitive healthcare landscape.
- Geographic Expansion: China Medicine Corporation has the potential to expand its distribution network beyond domestic markets. By exploring opportunities in emerging markets, the company can diversify its revenue streams and mitigate risks associated with reliance on the Chinese market. The Asia-Pacific pharmaceutical market is expected to grow significantly, providing a fertile ground for expansion.
- Regulatory Approvals for New Products: Securing regulatory approvals for new drugs and medical devices can serve as a major growth catalyst for China Medicine Corporation. The company can enhance its product portfolio and market competitiveness by navigating the regulatory landscape effectively, capitalizing on the increasing demand for innovative healthcare solutions.
What Opportunities Does CHME Have?
- Growing demand for traditional Chinese medicine and holistic health solutions.
- Expansion into emerging markets to diversify revenue streams.
- Strategic partnerships to enhance product development and market reach.
- Regulatory approvals for new products to drive growth.
What Threats Does CHME Face?
- Intense competition from both domestic and international pharmaceutical companies.
- Regulatory challenges and compliance risks in the healthcare sector.
- Economic fluctuations affecting consumer spending on healthcare products.
- Potential supply chain disruptions impacting product availability.
What Are CHME's Competitive Advantages?
- Established distribution network providing extensive market reach.
- Diverse product portfolio catering to various medical needs.
- Expertise in traditional Chinese medicine, aligning with consumer preferences.
- Strong brand recognition within the Chinese healthcare market.
- Ability to navigate regulatory environments effectively.
What Does CHME Do?
Founded in 2005, China Medicine Corporation has established itself as a significant entity in the healthcare distribution industry in China. Originally known as Lounsberry Holdings III, Inc., the company rebranded in May 2006 to reflect its focus on the pharmaceutical sector. Based in Guangzhou, China, China Medicine Corporation produces and distributes a wide array of products, including prescription medications, over-the-counter drugs, traditional Chinese medicine, herbs, dietary supplements, and medical devices. The company’s offerings target various medical applications, such as oncology, high blood pressure, and detoxification of food and animal feeds. Their product range addresses numerous health issues, including heart conditions, respiratory infections, hepatitis, and menstrual disorders. With a dedicated sales network across China, the company effectively reaches its customer base, ensuring the availability of its diverse product portfolio. The firm employs 281 individuals, contributing to its operational capabilities and market outreach. As the demand for healthcare products continues to rise in China, China Medicine Corporation is well-positioned to leverage its established distribution channels and product offerings to capture growth opportunities in this expanding market.
What Products and Services Does CHME Offer?
- Produce and distribute prescription and over-the-counter drugs.
- Offer traditional Chinese medicine products and herbs.
- Provide dietary supplements and medical devices.
- Develop medical formulations for various therapeutic applications.
- Address health issues such as oncology, high blood pressure, and respiratory infections.
- Utilize a comprehensive sales network across China for product distribution.
How Does CHME Make Money?
- Generate revenue through the sale of pharmaceutical products and medical devices.
- Leverage a robust distribution network to reach a wide customer base in China.
- Focus on both prescription and over-the-counter medication markets.
- Capitalize on the growing demand for traditional Chinese medicine and dietary supplements.
- Engage in strategic partnerships to enhance product offerings and market presence.
What Industry Does CHME Operate In?
The healthcare distribution industry in China is experiencing significant growth, driven by increasing healthcare expenditures and a rising demand for pharmaceutical products. The market is expected to expand as the Chinese government continues to invest in healthcare infrastructure and improve access to medical services. China Medicine Corporation operates within a competitive landscape that includes both domestic and international players. As the industry adapts to evolving consumer preferences, particularly towards traditional and integrative medicine, companies like China Medicine Corporation are strategically positioned to capture market share. The overall market size for pharmaceuticals in China is projected to exceed $200 billion by 2025, highlighting the substantial growth potential for key players in this sector.
Who Are CHME's Key Customers?
- Healthcare providers including hospitals and clinics.
- Pharmacies and retail outlets across China.
- Consumers seeking over-the-counter medications and supplements.
- Patients requiring prescription medications for chronic conditions.
- Distributors and wholesalers in the pharmaceutical sector.
How China Medicine Corporation Is Valued
China Medicine Corporation carries a market capitalization of 486K, placing it in the micro-cap category. Relative to its peer group, CHME's quantitative score of 52/100 is below the peer average of 64/100.
Company Profile
China Medicine Corporation operates in the Medical - Distribution industry within the Healthcare sector. It is headquartered in Guangzhou, CN. The company is led by CEO Senshan Yang. CHME has traded publicly since 2006.
ROE 4%Key Financial Metrics
Return on equity for China Medicine Corporation stands at 3.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.6%, showing how much profit it generates from its asset base. CHME trades at a trailing price-to-earnings ratio of 0.21, below the Healthcare sector average of ~23x. A current ratio of 2.10 indicates the company holds enough short-term assets to cover its near-term obligations.
F-Score 6/9Financial Health
China Medicine Corporation's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.81 places it in the grey zone, a middle ground that warrants monitoring.
CHME Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis
Bull Case vs Bear Case
Bull Case
- Recent insider buying activity suggests confidence in the company's future prospects.
- Positive community sentiment indicates growing belief in CHME's long-term potential.
- Bullish community views highlight the company's strategic positioning in the healthcare sector.
- Market perception acknowledges CHME's efforts to expand its product offerings.
Bear Case
- Recent insider selling activity raises concerns about the company's near-term performance.
- Negative community sentiment reflects skepticism regarding CHME's ability to execute its growth strategy.
- Bearish community views emphasize the competitive pressures facing CHME in the pharmaceutical market.
- Market perception questions the sustainability of CHME's current business model.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
CHME Latest News
No recent news available for CHME.
CHME Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CHME.
Price Targets
Wall Street price target analysis for CHME.
CHME MoonshotScore
What does this score mean?
The MoonshotScore rates CHME's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Senshan Yang
CEO
Senshan Yang has been at the helm of China Medicine Corporation since its inception in 2005. With a background in pharmaceutical sciences, he has overseen the company's growth and strategic direction. Yang has extensive experience in the healthcare industry, having previously held various leadership roles in pharmaceutical companies. He holds a degree in pharmacy and has been instrumental in promoting the integration of traditional Chinese medicine with modern healthcare practices.
Track Record: Under Yang's leadership, China Medicine Corporation has successfully expanded its product portfolio and strengthened its distribution network across China. His strategic focus on traditional Chinese medicine has positioned the company to capitalize on emerging market trends, driving revenue growth and enhancing brand recognition.
CHME OTC Market Information
The OTC Other tier represents companies that trade on the over-the-counter market, typically with less stringent reporting requirements than those on major exchanges like NYSE or NASDAQ. This tier often includes smaller companies or those with limited financial disclosure, which may affect their visibility and investor confidence.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosures may pose risks regarding transparency and accountability.
- Lower liquidity in the OTC market can lead to price volatility and trading difficulties.
- Regulatory scrutiny and compliance risks associated with operating in the healthcare sector.
- Market perception issues due to the company's OTC classification.
- Verify the company's financial health and operational metrics.
- Assess the competitive landscape and market positioning.
- Review regulatory compliance and approval status for products.
- Investigate the company's distribution network and market reach.
- Evaluate management team's experience and track record.
- Established brand presence in the Chinese healthcare market.
- Diverse product portfolio addressing various health needs.
- Strong sales network facilitating effective distribution.
China Medicine Corporation Healthcare Stock: Key Questions Answered
What does China Medicine Corporation do?
China Medicine Corporation specializes in the production and distribution of a wide range of pharmaceutical products, including prescription and over-the-counter drugs, traditional Chinese medicine, herbs, dietary supplements, and medical devices. The company addresses various health issues through its diverse product portfolio, targeting applications such as oncology, high blood pressure, and respiratory infections. With a strong sales network across China, the company effectively reaches its customer base, ensuring the availability of its products.
What do analysts say about CHME stock?
As of the latest available data, there are no specific analyst ratings or price targets for CHME stock. However, the company’s low P/E ratio of 0.28 suggests that it may be undervalued compared to industry peers. Investors are encouraged to consider the company's growth potential, particularly in the context of increasing healthcare demand in China.
What are the main risks for CHME?
China Medicine Corporation faces several risks, including regulatory challenges that could impact product approvals and market entry. The company also operates in a highly competitive environment, with both domestic and international players vying for market share. Economic fluctuations may affect consumer spending on healthcare products, while supply chain disruptions could impact product availability, posing ongoing operational challenges.
What are the key factors to evaluate for CHME?
China Medicine Corporation (CHME) holds an AI score of 52/100 (moderate). Not financial advice.
How frequently does CHME data refresh on this page?
CHME prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CHME's recent stock price performance?
China Medicine Corporation (CHME) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diverse product offerings addressing a wide range of health issues. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider CHME overvalued or undervalued right now?
Valuing China Medicine Corporation (CHME) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying CHME?
Before investing in China Medicine Corporation (CHME), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited financial disclosures may affect investor confidence and decision-making.