SEHK:151

Stock Analysis Report

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Executive Summary

Want Want China Holdings Limited, an investment holding company, manufactures, distributes, and sells food and beverages.


Snowflake Analysis

Proven track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 151 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.9%

151

3.4%

HK Food

4.1%

HK Market


1 Year Return

-1.0%

151

-0.5%

HK Food

-5.2%

HK Market

Return vs Industry: 151 matched the Hong Kong Food industry which returned -0.5% over the past year.

Return vs Market: 151 exceeded the Hong Kong Market which returned -5.2% over the past year.


Shareholder returns

151IndustryMarket
7 Day2.9%3.4%4.1%
30 Day4.4%2.8%3.5%
90 Day-7.7%-1.3%-5.3%
1 Year3.4%-1.0%1.1%-0.5%-2.0%-5.2%
3 Year8.3%-1.0%38.5%29.6%-0.4%-10.6%
5 Year-19.6%-30.2%7.5%-3.3%-9.0%-23.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Want Want China Holdings undervalued compared to its fair value and its price relative to the market?

2.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 151 (HK$5.67) is trading below our estimate of fair value (HK$5.79)

Significantly Below Fair Value: 151 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 151 is poor value based on its PE Ratio (17.4x) compared to the Food industry average (12.4x).

PE vs Market: 151 is poor value based on its PE Ratio (17.4x) compared to the Hong Kong market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 151 is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 151 is overvalued based on its PB Ratio (4.7x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is Want Want China Holdings forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 151's forecast earnings growth (5.4% per year) is above the savings rate (1.6%).

Earnings vs Market: 151's earnings (5.4% per year) are forecast to grow slower than the Hong Kong market (16.9% per year).

High Growth Earnings: 151's earnings are forecast to grow, but not significantly.

Revenue vs Market: 151's revenue (3.5% per year) is forecast to grow slower than the Hong Kong market (10.6% per year).

High Growth Revenue: 151's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 151's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has Want Want China Holdings performed over the past 5 years?

-2.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 151 has high quality earnings.

Growing Profit Margin: 151's current net profit margins (17.9%) are higher than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: 151's earnings have declined by -2.2% per year over the past 5 years.

Accelerating Growth: 151's earnings growth over the past year (17.2%) exceeds its 5-year average (-2.2% per year).

Earnings vs Industry: 151 earnings growth over the past year (17.2%) underperformed the Food industry 17.2%.


Return on Equity

High ROE: 151's Return on Equity (26.6%) is considered high.


Next Steps

Financial Health

How is Want Want China Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 151's short term assets (CN¥20.8B) exceed its short term liabilities (CN¥6.3B).

Long Term Liabilities: 151's short term assets (CN¥20.8B) exceed its long term liabilities (CN¥9.1B).


Debt to Equity History and Analysis

Debt Level: 151's debt to equity ratio (74.1%) is considered high.

Reducing Debt: 151's debt to equity ratio has increased from 68.8% to 74.1% over the past 5 years.

Debt Coverage: 151's debt is well covered by operating cash flow (50.6%).

Interest Coverage: 151 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Want Want China Holdings's current dividend yield, its reliability and sustainability?

4.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 151's dividend (4.65%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.44%).

High Dividend: 151's dividend (4.65%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.14%).


Stability and Growth of Payments

Stable Dividend: 151's dividend payments have been volatile in the past 10 years.

Growing Dividend: 151's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69%), 151's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 151's dividends in 3 years are forecast to be covered by earnings (73.2% payout ratio).


Next Steps

Management

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

7.5yrs

Average management tenure


CEO

Eng-Meng Tsai (62yo)

no data

Tenure

CN¥80,628,000

Compensation

Mr. Tsai Eng-Meng has been the Chairman of Want Want China Holdings Limited since April 1987 and serves as its Chief Executive Officer. Mr. Tsai serves as General Manager of I Lan Foods Industrial Co., Ltd ...


CEO Compensation Analysis

Compensation vs Market: Eng-Meng's total compensation ($USD11.33M) is above average for companies of similar size in the Hong Kong market ($USD559.92K).

Compensation vs Earnings: Eng-Meng's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eng-Meng Tsai
Chairman & CEOno dataCN¥80.63m50.73% CN¥35.7b
Chi-Wen Chu
CFO & Executive Director8.25yrsCN¥2.44m0.0016% CN¥1.1m
Wang-Chia Tsai
COO & Executive Director10yrsCN¥2.32m0.82% CN¥574.6m
Yung-Sung Huang
Chief Marketing Officer & Executive Director5.25yrsCN¥1.23m0.00018% CN¥126.7k
Shao-Chung Tsai
Executive Director10.92yrsCN¥1.82m0.81% CN¥569.0m
Hong Yee Lai
Company Secretary & Executive Director1.83yrsCN¥785.50k0.000060% CN¥42.2k
Ming-Hui Tsai
GM of Southeast Asia Development Department & Executive Director1.83yrsCN¥839.00k0.00046% CN¥323.8k
Yu-Sheng Lee
Group Investment Officerno datano datano data
Chen-Shih Lin
Technology Officerno datano datano data
Hung-Hsing Ting
Managing Director of the Information Technology Departmentno datano datano data

7.5yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 151's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eng-Meng Tsai
Chairman & CEOno dataCN¥80.63m50.73% CN¥35.7b
Chi-Wen Chu
CFO & Executive Director8.25yrsCN¥2.44m0.0016% CN¥1.1m
Wang-Chia Tsai
COO & Executive Director10yrsCN¥2.32m0.82% CN¥574.6m
Yung-Sung Huang
Chief Marketing Officer & Executive Director5.25yrsCN¥1.23m0.00018% CN¥126.7k
Shao-Chung Tsai
Executive Director10.92yrsCN¥1.82m0.81% CN¥569.0m
Hong Yee Lai
Company Secretary & Executive Director1.83yrsCN¥785.50k0.000060% CN¥42.2k
Ming-Hui Tsai
GM of Southeast Asia Development Department & Executive Director1.83yrsCN¥839.00k0.00046% CN¥323.8k
Ching-Tsun Liao
Vice Chairman8.83yrsCN¥1.42m0.00073% CN¥513.9k
Kerwei Pei
Independent Non Executive Directorno dataCN¥404.00kno data
Ka Toh
Independent Non-Executive Directorno dataCN¥404.00kno data

8.5yrs

Average Tenure

58yo

Average Age

Experienced Board: 151's board of directors are considered experienced (8.5 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

Want Want China Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Want Want China Holdings Limited
  • Ticker: 151
  • Exchange: SEHK
  • Founded: 1962
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$70.394b
  • Shares outstanding: 12.42b
  • Website: https://www.want-want.com

Number of Employees


Location

  • Want Want China Holdings Limited
  • Mira Place Tower A
  • 9th Floor
  • Tsim Sha Tsui
  • Kowloon
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
151SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMar 2008
4HQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2008
WWNT.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2008
151SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2008
151SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMar 2008
WWNT.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDOct 2008

Biography

Want Want China Holdings Limited, an investment holding company, manufactures, distributes, and sells food and beverages. The company operates through four segments: Rice Crackers, Dairy Products and Beverages, Snack Foods, and Other Products. It offers sugar coated crackers, savoury crackers and fried crackers, and gift packs; flavoured milk, room temperature yogurt, yogurt drinks, ready-to-drink coffee, juice drinks, sports drinks, herbal tea, and milk powder; candies, popsicles, ball cakes and jellies, beans, nuts, and other snacks; and wine and other food products. The company is also involved in the trading of food and beverages, raw materials, machineries, etc.; sale of chemical materials and plastic films/bags; manufacture and sale of machineries and related services; manufacture of dehydrating, deoxidating, preservative, and related products; manufacture and sale of packaging materials, packing bags, carton boxes, and cans; provision of consultancy and information services; dairy farming and milk production activities; trading of food and beverages and related activities online; processing and sale of rice and oil products; and manufacture of rice flour. It serves customers through a sales and distribution network primarily in the People’s Republic of China, Taiwan, Japan, Hong Kong, Singapore, the United States, and Canada; and countries in the Southeast Asia and Europe. Want Want China Holdings Limited was founded in 1962 and is headquartered in Tsim Sha Tsui, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 06:01
End of Day Share Price2020/06/03 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.