Exploring Jiangxi Hongcheng EnvironmentLtd And Two Additional Prominent Dividend Stocks

Amidst a backdrop of mixed global economic signals, China's market has shown resilience with key indices like the Shanghai Composite and the Hang Seng experiencing varied movements. This context sets an intriguing stage for investors considering dividend stocks in China, where stability and consistent returns become particularly appealing. In light of these conditions, understanding what constitutes a robust dividend stock is crucial. Factors such as a strong balance sheet, consistent dividend history, and the potential to withstand economic fluctuations are key considerations that align well with current market dynamics.

Top 10 Dividend Stocks In China

Name	Dividend Yield	Dividend Rating
Shandong Wit Dyne HealthLtd (SZSE:000915)	6.15%	★★★★★★
Midea Group (SZSE:000333)	4.60%	★★★★★★
Changhong Meiling (SZSE:000521)	3.41%	★★★★★★
Wuliangye YibinLtd (SZSE:000858)	3.28%	★★★★★★
Inner Mongolia Yili Industrial Group (SHSE:600887)	4.43%	★★★★★★
Ping An Bank (SZSE:000001)	6.54%	★★★★★★
Huangshan NovelLtd (SZSE:002014)	5.55%	★★★★★★
China South Publishing & Media Group (SHSE:601098)	4.16%	★★★★★★
Chacha Food Company (SZSE:002557)	3.16%	★★★★★★
Zhejiang Jiaxin SilkLtd (SZSE:002404)	5.25%	★★★★★★

Click here to see the full list of 208 stocks from our Top Dividend Stocks screener.

Let's dive into some prime choices out of from the screener.

Jiangxi Hongcheng EnvironmentLtd (SHSE:600461)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Jiangxi Hongcheng Environment Co., Ltd. operates in China, focusing on the production and supply of tap water, with a market capitalization of approximately CN¥14.57 billion.

Operations: Jiangxi Hongcheng Environment Co., Ltd. primarily generates its revenue from the production and distribution of tap water in China.

Dividend Yield: 4%

Jiangxi Hongcheng EnvironmentLtd. reported a steady increase in sales and net income, with Q1 2024 sales reaching CNY 2.15 billion and net income at CNY 323.24 million. Despite a dividend yield of 4.03%, which ranks in the top quartile for Chinese stocks, the sustainability is questionable as dividends are poorly covered by cash flows, evidenced by a high cash payout ratio of 57.40%. The company's financial leverage is also high, adding risk to its dividend reliability amidst fluctuating payouts over the past decade.

• Click here to discover the nuances of Jiangxi Hongcheng EnvironmentLtd with our detailed analytical dividend report.
• The analysis detailed in our Jiangxi Hongcheng EnvironmentLtd valuation report hints at an inflated share price compared to its estimated value.

Zhejiang CONBA PharmaceuticalLtd (SHSE:600572)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Zhejiang CONBA Pharmaceutical Co., Ltd. is a company based in China that specializes in the research, development, manufacturing, and sales of medicines and general health products, with a market capitalization of approximately CN¥13.82 billion.

Operations: Zhejiang CONBA Pharmaceutical Co., Ltd. generates its revenue primarily from the research, development, manufacturing, and sales of medicines and general health products in China.

Dividend Yield: 3.7%

Zhejiang CONBA Pharmaceutical Co., Ltd. faces challenges with its dividend sustainability, as its high payout ratio of 98.3% suggests dividends are not well covered by earnings, despite a reasonable cash payout ratio of 67.9%. The company's dividend yield of 3.68% places it in the top quartile of Chinese dividend payers, but volatility and unreliable payments over the past decade raise concerns about consistency. Recent financials show a decline in quarterly revenue and net income year-over-year, which may impact future dividend reliability.

• Click to explore a detailed breakdown of our findings in Zhejiang CONBA PharmaceuticalLtd's dividend report.
• Our expertly prepared valuation report Zhejiang CONBA PharmaceuticalLtd implies its share price may be lower than expected.

Baoxiniao Holding (SZSE:002154)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Baoxiniao Holding Co., Ltd. specializes in the research, development, production, and sale of branded clothing products within China, with a market capitalization of approximately CN¥8.65 billion.

Operations: Baoxiniao Holding Co., Ltd. generates revenue primarily from its textile and apparel segment, amounting to CN¥5.17 billion.

Dividend Yield: 4.2%

Baoxiniao Holding Co., Ltd. exhibits a mixed performance in dividend reliability, marked by a volatile history over the past decade. Despite this, the company's dividends are currently covered by both earnings and cash flows with payout ratios of 53% and 55.2%, respectively. Recent increases in dividends, including a CNY 2.50 per share for 2023, coupled with revenue growth from CNY 4.31 billion to CNY 5.25 billion and net income improvement to CNY 697.85 million suggest some positive momentum. However, investors should be cautious of past inconsistencies in dividend payments.

• Get an in-depth perspective on Baoxiniao Holding's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, Baoxiniao Holding's share price might be too pessimistic.

Next Steps

• Investigate our full lineup of 208 Top Dividend Stocks right here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com