According to the Intelligence Finance app, China Traditional Chinese Medicine (00570) fell more than 10%, as of press time, down 10.05%, at HKD 3.77, trading volume of HKD 212 million.

Earlier, Deutsche Bank published a report stating that after China Traditional Chinese Medicine, a leading producer of traditional Chinese medicine granules, released its performance last year, the bank lowered its earnings forecast for the next two years by 5% to 6%, indicating that sales forecasts for traditional Chinese medicine granules were downgraded. The bank has also extended its forecast to 2030, raising its target price from HKD 4.8 to HKD 5.4 due to attractive valuations, and rating the stock as "shareholding". The report predicted that sales of traditional Chinese medicine granules would increase at an average compound annual growth rate of 15% to 20% between 2020 and 2025, and as the market opens up, hospitals are committed to tapping new sources of revenue outside Western medicine. The mainland government has policies that are bullish for traditional Chinese medicine granules and exempts them from drug income controls.

It is worth noting that China Traditional Chinese Medicine and the offeror, China National Pharmaceutical Group Joint Prosperity Co Ltd, jointly announced that on February 9, 2024, the offeror requested that the board of directors present proposals to plan shareholders to privatize the company. If approved, it will lead to the cancellation of the company's listing on the Hong Kong Stock Exchange. The board of directors has reviewed the proposal and agreed to present it to the plan shareholders. China Traditional Chinese Medicine made it clear in the announcement that after the proposal is successfully implemented, the offeror plans to review the company's operations and explore business opportunities to develop its existing business, depending on the ability of the group to obtain the necessary funds and the current market conditions.