SEHK:220

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet with proven track record and pays a dividend.


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


Market Performance


7 Day Return

9.1%

SEHK:220

5.6%

HK Food

2.2%

HK Market


1 Year Return

18.6%

SEHK:220

6.0%

HK Food

-11.1%

HK Market

220 outperformed the Food industry which returned 6% over the past year.

220 outperformed the Market in Hong Kong which returned -11.1% over the past year.


Share holder returns

220IndustryMarket
7 Day9.1%5.6%2.2%
30 Day-3.8%-5.8%-7.3%
90 Day17.8%0.6%-4.8%
1 Year22.7%18.6%8.9%6.0%-7.9%-11.1%
3 Year69.0%59.1%50.8%39.8%15.5%4.1%
5 Year41.7%32.3%-0.1%-10.1%10.0%-8.2%

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

Valuation

Is Uni-President China Holdings undervalued based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Uni-President China Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

Uni-President China Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Uni-President China Holdings is overvalued based on earnings compared to the HK Food industry average.

Uni-President China Holdings is overvalued based on earnings compared to the Hong Kong market.


Price Based on Expected Growth

Uni-President China Holdings is poor value based on expected growth next year.


Price Based on Value of Assets

Uni-President China Holdings is overvalued based on assets compared to the HK Food industry average.


Next Steps

Future Growth

How is Uni-President China Holdings expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

6.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Uni-President China Holdings's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Uni-President China Holdings's earnings are expected to grow by 6.6% yearly, however this is not considered high growth (20% yearly).

Uni-President China Holdings's revenue growth is positive but not above the Hong Kong market average.

Uni-President China Holdings's earnings growth is positive but not above the Hong Kong market average.

Uni-President China Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.


Earnings per Share Growth Estimates


Future Return on Equity

Uni-President China Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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


Past Earnings Growth Analysis

Uni-President China Holdings's year on year earnings growth rate has been positive over the past 5 years.

Uni-President China Holdings's 1-year earnings growth exceeds its 5-year average (28.4% vs 16.1%)

Uni-President China Holdings's earnings growth has exceeded the HK Food industry average in the past year (28.4% vs 8.3%).


Return on Equity

Uni-President China Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Uni-President China Holdings used its assets less efficiently than the HK Food industry average last year based on Return on Assets.


Return on Capital Employed

Uni-President China Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Uni-President China Holdings's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Uni-President China Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Uni-President China Holdings's level of debt (15%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (50.8% vs 15% today).

Debt is well covered by operating cash flow (129.6%, greater than 20% of total debt).

Uni-President China Holdings earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

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?

3.78%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Uni-President China Holdings's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.27%).

Uni-President China Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (6.18%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.1x coverage).


Next Steps

Management

What is the CEO of Uni-President China Holdings's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Xinhua Liu (49yo)

3.1yrs

Tenure

CN¥10,716,000

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

Xinhua's remuneration is higher than average for companies of similar size in Hong Kong.

Xinhua's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

49yo

Average Age

The tenure for the Uni-President China Holdings management team is about average.


Board Age and Tenure

12.0yrs

Average Tenure

60yo

Average Age

The average tenure for the Uni-President China Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyCN¥262,40028 Jun 19
Uni-President Enterprises Corp.
EntityCompany
Shares41,000
Max PriceCN¥6.40
SellCN¥15,581,12401 Apr 19
JPMorgan Chase & Co, Brokerage and Securities Investments
EntityCompany
Shares2,022,025
Max PriceCN¥7.71
BuyCN¥1,474,00026 Feb 19
Uni-President Enterprises Corp.
EntityCompany
Shares220,000
Max PriceCN¥6.70

Ownership Breakdown


Management Team

  • Alex Lo (62yo)

    Executive Chairman

    • Tenure: 12.0yrs
    • Compensation: CN¥13.18m
  • Xinhua Liu (49yo)

    Executive Director & President

    • Tenure: 3.1yrs
    • Compensation: CN¥10.72m
  • Nianen Zhao (43yo)

    Head of Bottled Water Department & GM of the Combined Drink Products Business

    • Tenure: 12.8yrs
  • Tzu-Chiang LIU (49yo)

    Chief Financial Officer

    • Tenure: 0.0yrs
  • Kwan Ho Fung

    Company Secretary

    • Tenure: 0.6yrs

Board Members

  • Peter Lo (63yo)

    Independent Non Executive Director

    • Tenure: 11.8yrs
    • Compensation: CN¥258.00k
  • Anthony Fan (59yo)

    Independent Non Executive Director

    • Tenure: 12.0yrs
    • Compensation: CN¥258.00k
  • Tony Su (62yo)

    Non Executive Director

    • Tenure: 12.0yrs
    • Compensation: CN¥41.00k
  • Alex Lo (62yo)

    Executive Chairman

    • Tenure: 12.0yrs
    • Compensation: CN¥13.18m
  • Johnny Chen (60yo)

    Independent Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: CN¥247.00k
  • Eric Chen (64yo)

    Independent Non Executive Director

    • Tenure: 12.0yrs
    • Compensation: CN¥258.00k
  • Xinhua Liu (49yo)

    Executive Director & President

    • Tenure: 3.1yrs
    • Compensation: CN¥10.72m
  • Kuo-Hui Chen (50yo)

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: CN¥48.00k
  • Anthony Fan (59yo)

    Independent Non Executive Director

    • Tenure: 12.0yrs
    • Compensation: CN¥258.00k

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: 220
  • Exchange: SEHK
  • Founded: 2007
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$39.781b
  • 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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 12:52
End of Day Share Price2019/08/23 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.