SEHK:3799

Stock Analysis Report

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 proven 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: 3799 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.6%

3799

8.3%

HK Food

7.4%

HK Market


1 Year Return

-5.1%

3799

-11.1%

HK Food

-22.7%

HK Market

Return vs Industry: 3799 exceeded the Hong Kong Food industry which returned -11.1% over the past year.

Return vs Market: 3799 exceeded the Hong Kong Market which returned -22.7% over the past year.


Shareholder returns

3799IndustryMarket
7 Day11.6%8.3%7.4%
30 Day4.9%-4.8%-11.2%
90 Day-6.4%-6.3%-17.3%
1 Year-0.7%-5.1%-8.7%-11.1%-19.9%-22.7%
3 Year38.6%21.1%29.9%20.2%-5.3%-14.8%
5 Yearn/a3.5%-6.9%-8.7%-23.4%

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

Valuation

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

18.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 3799 (HK$5.4) is trading below our estimate of fair value (HK$6.62)

Significantly Below Fair Value: 3799 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 3799 is poor value based on its PE Ratio (17.7x) compared to the Food industry average (10.7x).

PE vs Market: 3799 is poor value based on its PE Ratio (17.7x) compared to the Hong Kong market (8.9x).


Price to Earnings Growth Ratio

PEG Ratio: 3799 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 3799 is overvalued based on its PB Ratio (4.2x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is Dali Foods Group forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3799's forecast earnings growth (7.3% per year) is above the savings rate (1.6%).

Earnings vs Market: 3799's earnings (7.3% per year) are forecast to grow slower than the Hong Kong market (12.7% per year).

High Growth Earnings: 3799's earnings are forecast to grow, but not significantly.

Revenue vs Market: 3799's revenue (6.1% per year) is forecast to grow slower than the Hong Kong market (10% per year).

High Growth Revenue: 3799's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 3799's Return on Equity is forecast to be high in 3 years time (24.9%)


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: 3799 has high quality earnings.

Growing Profit Margin: 3799's current net profit margins (18%) are higher than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: 3799's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: 3799's earnings growth over the past year (3.3%) is below its 5-year average (9.9% per year).

Earnings vs Industry: 3799 earnings growth over the past year (3.3%) underperformed the Food industry 8.8%.


Return on Equity

High ROE: 3799'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: 3799's short term assets (CN¥13.8B) exceed its short term liabilities (CN¥3.2B).

Long Term Liabilities: 3799's short term assets (CN¥13.8B) exceed its long term liabilities (CN¥494.2M).


Debt to Equity History and Analysis

Debt Level: 3799 is debt free.

Reducing Debt: 3799 has no debt compared to 5 years ago when its debt to equity ratio was 586.6%.

Debt Coverage: 3799 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 3799 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 3799 has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 3799's debt is covered by short term assets.


Next Steps

Dividend

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

2.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 3799's dividend (2.84%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.63%).

High Dividend: 3799's dividend (2.84%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.28%).


Stability and Growth of Payments

Stable Dividend: 3799 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 3799'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 (39%), 3799's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 3799's dividends in 3 years are forecast to be covered by earnings (65.5% payout ratio).


Next Steps

Management

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

11.6yrs

Average management tenure


CEO

Shihui Xu (61yo)

no data

Tenure

CN¥2,103,000

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 ($USD296.25K) is below average for companies of similar size in the Hong Kong market ($USD718.74K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Shihui Xu
Chairman & CEOno dataCN¥2.10mno data
Weiqiang Zhuang
Executive VP & Executive Director4.67yrsCN¥4.36mno data
Yangyang Xu
VP & Executive Director5.25yrsCN¥2.42mno data
Xinchuan Wu
Chief Financial Officer11.58yrsno datano data
Zhenqiao Le
Head of Product Research & Development Department12.83yrsno datano data
Zhiqing Huang
Chief Procurement Officer11.67yrsno datano data
Ying Chen
Joint Company Secretary2yrsno datano data
Sze Man Mak
Joint Company Secretary0.83yrno datano data

11.6yrs

Average Tenure

41yo

Average Age

Experienced Management: 3799's management team is seasoned and experienced (11.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shihui Xu
Chairman & CEOno dataCN¥2.10mno data
Weiqiang Zhuang
Executive VP & Executive Director4.67yrsCN¥4.36mno data
Yangyang Xu
VP & Executive Director5.25yrsCN¥2.42mno data
Zhijun Lin
Independent Non-Executive Director4.58yrsCN¥278.00kno data
Xiaoling Hu
Non-Executive Director4.83yrsno datano data
Hanchuan Cheng
Independent Non-Executive Director4.58yrsCN¥136.00kno data
Biying Xu
Non-Executive Director4.67yrsno datano data
Xiaobin Liu
Independent Non-Executive Director4.58yrsCN¥136.00kno data

4.7yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 3799's board of directors are considered experienced (4.7 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: 3799
  • Exchange: SEHK
  • Founded: 1989
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$72.716b
  • Shares outstanding: 13.69b
  • Website: https://www.dali-group.com

Number of Employees


Location

  • Dali Foods Group Company Limited
  • One Harbourfront
  • Room 2601, 26th Floor
  • Kowloon
  • Kowloon
  • Hong Kong

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. It offers bread, cakes, and pastries; chips, fries, and others; biscuits and cookies; herbal tea; plant-based and milk beverages; energy drinks; and other beverage products. The company offers its products primarily under the Daliyuan, Haochidian, Copico, Doubendou, Hi-Tiger, and Heqizheng brand names. It markets its products through distributors, as well as retail, e-commerce, specialty, and catering channels. The company was founded in 1989 and is based in Kowloon, Hong Kong. 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 Analysis2020/03/31 13:22
End of Day Share Price2020/03/31 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.