DB:05M

Stock Analysis Report

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Executive Summary

Dali Foods Group Company Limited, an investment holding company, manufactures and sells food and beverages in Mainland China.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

How has Dali Foods Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 05M has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

05M

5.6%

DE Food

2.2%

DE Market


1 Year Return

-12.1%

05M

-1.0%

DE Food

-3.9%

DE Market

Return vs Industry: 05M underperformed the German Food industry which returned -1% over the past year.

Return vs Market: 05M underperformed the German Market which returned -3.9% over the past year.


Shareholder returns

05MIndustryMarket
7 Day0%5.6%2.2%
30 Day-1.8%9.0%8.0%
90 Day-12.2%-4.8%-9.6%
1 Year-7.8%-12.1%0.5%-1.0%-2.3%-3.9%
3 Year16.7%1.5%-13.3%-18.5%-7.6%-14.8%
5 Yearn/a14.7%4.4%-0.3%-12.9%

Price Volatility Vs. Market

How volatile is Dali Foods Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Dali Foods Group undervalued compared to its fair value and its price relative to the market?

19.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 05M (€0.54) is trading below our estimate of fair value (€0.67)

Significantly Below Fair Value: 05M is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 05M is good value based on its PE Ratio (15.5x) compared to the Food industry average (25.2x).

PE vs Market: 05M is good value based on its PE Ratio (15.5x) compared to the German market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: 05M is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 05M is overvalued based on its PB Ratio (3.6x) compared to the DE Food industry average (1.8x).


Next Steps

Future Growth

How is Dali Foods Group forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 05M's forecast earnings growth (6.8% per year) is above the savings rate (0.2%).

Earnings vs Market: 05M's earnings (6.8% per year) are forecast to grow slower than the German market (21.7% per year).

High Growth Earnings: 05M's earnings are forecast to grow, but not significantly.

Revenue vs Market: 05M's revenue (5.7% per year) is forecast to grow faster than the German market (5.6% per year).

High Growth Revenue: 05M's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 05M's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has Dali Foods Group performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 05M has high quality earnings.

Growing Profit Margin: 05M's current net profit margins (18%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: 05M's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: 05M's earnings growth over the past year (3.3%) is below its 5-year average (9.9% per year).

Earnings vs Industry: 05M earnings growth over the past year (3.3%) exceeded the Food industry -24.1%.


Return on Equity

High ROE: 05M's Return on Equity (23.6%) is considered high.


Next Steps

Financial Health

How is Dali Foods Group's financial position?


Financial Position Analysis

Short Term Liabilities: 05M's short term assets (CN¥13.8B) exceed its short term liabilities (CN¥3.2B).

Long Term Liabilities: 05M's short term assets (CN¥13.8B) exceed its long term liabilities (CN¥494.2M).


Debt to Equity History and Analysis

Debt Level: 05M is debt free.

Reducing Debt: 05M has no debt compared to 5 years ago when its debt to equity ratio was 586.6%.

Debt Coverage: 05M has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 05M has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Dali Foods Group's current dividend yield, its reliability and sustainability?

3.23%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 05M's dividend (3.23%) is higher than the bottom 25% of dividend payers in the German market (1.35%).

High Dividend: 05M's dividend (3.23%) is low compared to the top 25% of dividend payers in the German market (4.05%).


Stability and Growth of Payments

Stable Dividend: 05M has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 05M's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.1%), 05M's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 05M's dividends in 3 years are forecast to be covered by earnings (71.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.8yrs

Average management tenure


CEO

Shihui Xu (61yo)

no data

Tenure

CN¥2,150,000

Compensation

Mr. Shihui Xu is the Founder of Dali Foods Group Company Limited and serves its Chairman and Chief Executive Officer. Mr. Xu has been an Executive Director at Dali Foods Group Co Ltd. November 4, 2014. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Shihui's total compensation ($USD301.26K) is below average for companies of similar size in the German market ($USD3.58M).

Compensation vs Earnings: Shihui's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Shihui Xu
Chairman & CEOno dataCN¥2.15mno data
Weiqiang Zhuang
Executive VP & Executive Director4.92yrsCN¥4.27mno data
Yang Yang Xu
VP & Executive Director5.5yrsCN¥2.44mno data
Xinchuan Wu
Chief Financial Officer11.75yrsno datano data
Zhenqiao Le
Head of Product Research & Development Department13yrsno datano data
Zhiqing Huang
Chief Procurement Officer11.92yrsno datano data
Ying Chen
Joint Company Secretary2.17yrsno datano data
Sze Man Mak
Joint Company Secretary1yrno datano data

11.8yrs

Average Tenure

41yo

Average Age

Experienced Management: 05M's management team is seasoned and experienced (11.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shihui Xu
Chairman & CEOno dataCN¥2.15mno data
Weiqiang Zhuang
Executive VP & Executive Director4.92yrsCN¥4.27mno data
Yang Yang Xu
VP & Executive Director5.5yrsCN¥2.44mno data
Zhijun Lin
Independent Non-Executive Director4.75yrsCN¥282.00kno data
Xiaoling Hu
Non-Executive Director5yrsno datano data
Hanchuan Cheng
Independent Non-Executive Director4.75yrsCN¥141.00kno data
Biying Xu
Non-Executive Director4.92yrsno datano data
Xiaobin Liu
Independent Non-Executive Director4.75yrsCN¥141.00kno data

4.9yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 05M's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Dali Foods Group Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Dali Foods Group Company Limited
  • Ticker: 05M
  • Exchange: DB
  • Founded: 1989
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$64.499b
  • Listing Market Cap: HK$7.634b
  • Shares outstanding: 13.69b
  • Website: https://www.dali-group.com

Number of Employees


Location

  • Dali Foods Group Company Limited
  • Linkou, Zishan
  • Hui’an
  • Fujian Province
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
3799SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2015
05MDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015
3799SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2015
3799SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2015

Biography

Dali Foods Group Company Limited, an investment holding company, manufactures and sells food and beverages in Mainland China. The company operates through four segments: Manufacture and Sale of Household Consumption, Manufacture and Sale of Snack Food, Manufacture and Sale of Ready-To-Drink Beverage, and Others. It offers energy drinks, herbal tea, soymilk, breads, potato chips, biscuits, pineapple buns, ice cream pies, qiaokechun, and other bakery products. The company offers its products primarily under the Daliyuan, Meibeichen, Landibao, Haochidian, Copico, Doubendou, Hi-Tiger, and Heqizheng brand names. It markets its products through distributors and online sales channels. The company was founded in 1989 and is headquartered in Hui’an, the People’s Republic of China. Dali Foods Group Company Limited is a subsidiary of Divine Foods Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 07:27
End of Day Share Price2020/05/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.