DB:58U

Stock Analysis Report

Uni-President China Holdings

Executive Summary

Uni-President China Holdings Ltd., an investment holding company, manufactures, sells, and trades in beverages and instant noodles in the People’s Republic of China.

Rewards

Trading at 41.1% below its fair value

Earnings are forecast to grow 7.44% per year

Earnings grew by 28.4% over the past year

Risk Analysis

Dividend of 3.04% is not well covered by earnings



Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Uni-President China Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 58U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

6.3%

58U

3.5%

DE Food

1.7%

DE Market


1 Year Return

30.3%

58U

11.1%

DE Food

15.0%

DE Market

Return vs Industry: 58U exceeded the German Food industry which returned 11.1% over the past year.

Return vs Market: 58U exceeded the German Market which returned 15% over the past year.


Shareholder returns

58UIndustryMarket
7 Day6.3%3.5%1.7%
30 Day4.1%5.7%0.8%
90 Day18.6%11.4%3.7%
1 Year34.8%30.3%12.9%11.1%18.5%15.0%
3 Year64.2%54.5%-14.1%-19.5%17.1%6.9%
5 Year58.0%47.4%32.7%21.0%24.3%7.3%

Price Volatility Vs. Market

How volatile is Uni-President China Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Uni-President China Holdings undervalued compared to its fair value and its price relative to the market?

41.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 58U (€1.02) is trading below our estimate of fair value (€1.73)

Significantly Below Fair Value: 58U is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 58U is poor value based on its PE Ratio (25.8x) compared to the Food industry average (22.7x).

PE vs Market: 58U is poor value based on its PE Ratio (25.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: 58U is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: 58U is overvalued based on its PB Ratio (2.6x) compared to the DE Food industry average (2x).


Next Steps

Future Growth

How is Uni-President China Holdings forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 58U's forecast earnings growth (7.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: 58U's earnings (7.4% per year) are forecast to grow slower than the German market (13.3% per year).

High Growth Earnings: 58U's earnings are forecast to grow, but not significantly.

Revenue vs Market: 58U's revenue (4% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: 58U's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 58U's Return on Equity is forecast to be low in 3 years time (11.4%).


Next Steps

Past Performance

How has Uni-President China Holdings performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 58U has high quality earnings.

Growing Profit Margin: 58U's current net profit margins (6%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: 58U's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: 58U's earnings growth over the past year (28.4%) exceeds its 5-year average (16.1% per year).

Earnings vs Industry: 58U earnings growth over the past year (28.4%) exceeded the Food industry 8.3%.


Return on Equity

High ROE: 58U's Return on Equity (10%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Uni-President China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 58U's short term assets (CN¥6.7B) do not cover its short term liabilities (CN¥6.9B).

Long Term Liabilities: 58U's short term assets (CN¥6.7B) exceed its long term liabilities (CN¥475.4M).


Debt to Equity History and Analysis

Debt Level: 58U's debt to equity ratio (15%) is considered satisfactory.

Reducing Debt: 58U's debt to equity ratio has reduced from 50.8% to 15% over the past 5 years.

Debt Coverage: 58U's debt is well covered by operating cash flow (104.9%).

Interest Coverage: 58U earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 58U has a high level of physical assets or inventory.

Debt Coverage by Assets: 58U's debt is covered by short term assets (assets are 3.4x debt).


Next Steps

Dividend

What is Uni-President China Holdings's current dividend yield, its reliability and sustainability?

3.03%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%1.3%markettop25%3.6%industryaverage1.4%forecastin3Years4.3%

Current dividend yield vs market & industry

Notable Dividend: 58U's dividend (3.04%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 58U's dividend (3.04%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: 58U's dividend payments have been volatile in the past 10 years.

Growing Dividend: 58U's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (78.4%), 58U's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 58U's dividends in 3 years are not forecast to be well covered by earnings (94.1% payout ratio).


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Xinhua Liu (49yo)

3.6yrs

Tenure

CN¥3,604,000

Compensation

Mr. Liu Xinhua has been the President and Executive Director of Uni-President China Holdings Ltd. since July 1, 2016 and March 25, 2017 respectively. Mr. Liu served as Head of Food department at Uni-Presid ...


CEO Compensation Analysis

Compensation vs Market: Xinhua's total compensation ($USD515.87K) is below average for companies of similar size in the German market ($USD3.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Chih-Hsien Lo
Executive Chairman12.5yrsCN¥4.44m2.25% CN¥100.8m
Xinhua Liu
Executive Director & President3.6yrsCN¥3.60mno data
Tzu-Chiang LIU
Chief Financial Officer0yrsno datano data
Nianen Zhao
Head of Bottled Water Department & GM of the Combined Drink Products Business13.3yrsno datano data
Kwan Ho Fung
Company Secretary1.1yrsno datano data

3.6yrs

Average Tenure

49yo

Average Age

Experienced Management: 58U's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Chih-Hsien Lo
Executive Chairman12.5yrsCN¥4.44m2.25% CN¥100.8m
Xinhua Liu
Executive Director & President3.6yrsCN¥3.60mno data
Peter Lo
Independent Non Executive Director12.3yrsCN¥258.00kno data
Tsung-Ming Su
Non Executive Director12.5yrsCN¥41.00kno data
Johnny Chen
Independent Non-Executive Director4.2yrsCN¥247.00kno data
Sun-Te Chen
Independent Non Executive Director12.5yrsCN¥258.00kno data
Kuo-Hui Chen
Non-Executive Director2.6yrsCN¥48.00kno data
Ren-Da Fan
Independent Non Executive Director12.5yrsCN¥258.00kno data

12.4yrs

Average Tenure

61yo

Average Age

Experienced Board: 58U's board of directors are seasoned and experienced ( 12.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Uni-President China Holdings Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Uni-President China Holdings Ltd
  • Ticker: 58U
  • Exchange: DB
  • Founded: 2007
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$37.708b
  • Listing Market Cap: HK$4.478b
  • Shares outstanding: 4.32b
  • Website: https://www.uni-president.com.cn

Number of Employees


Location

  • Uni-President China Holdings Ltd
  • No. 131, Linhong Road
  • Shanghai Hongqiao Linkong Economic Zone
  • Shanghai
  • 200335
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
220SEHK (The Stock Exchange of Hong Kong Ltd.)YesCommon SharesHKHKDDec 2007
58UDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2007
UNPS.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 2007
220SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesCommon SharesHKHKDDec 2007
220SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesCommon SharesHKHKDDec 2007
UPCH.YOTCPK (Pink Sheets LLC)ADRUSUSDOct 2008

Biography

Uni-President China Holdings Ltd., an investment holding company, manufactures, sells, and trades in beverages and instant noodles in the People’s Republic of China. The company operates through Beverages, Instant Noodles, and Others segments. It offers tea drinks, juice drinks, milk tea, coffee, soy milk, bottle can drinks, and bottled water. The company also engages in the wholesale of pre-packaged food and dairy products, and forage and fertilizers, as well as manufactures and sells seasonings. In addition, it is involved in leasing, real estate, catering, and management consulting, as well as human resource management related activities. The company was incorporated in 2007 and is headquartered in Shanghai, China. Uni-President China Holdings Ltd. is a subsidiary of Cayman President Holdings Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 21:28
End of Day Share Price2020/02/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.