SEHK:6186

Stock Analysis Report

Executive Summary

China Feihe Limited, together with its subsidiaries, manufactures and distributes infant milk formula products in the People’s Republic of China, Hong Kong, the United States, and Canada.


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 6186's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.3%

6186

2.0%

HK Food

2.7%

HK Market


1 Year Return

n/a

6186

-6.9%

HK Food

-19.8%

HK Market

Return vs Industry: Insufficient data to determine how 6186 performed against the Hong Kong Food industry.

Return vs Market: Insufficient data to determine how 6186 performed against the Hong Kong Market.


Shareholder returns

6186IndustryMarket
7 Day-4.3%2.0%2.7%
30 Day15.1%-3.4%-7.2%
90 Day49.6%-0.9%-12.1%
1 Yearn/a-4.4%-6.9%-16.9%-19.8%
3 Yearn/a36.5%26.2%0.9%-9.3%
5 Yearn/a4.7%-6.1%-12.6%-26.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6186 (HK$13.3) is trading below our estimate of fair value (HK$20.2)

Significantly Below Fair Value: 6186 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6186 is poor value based on its PE Ratio (33.7x) compared to the Food industry average (12.1x).

PE vs Market: 6186 is poor value based on its PE Ratio (33.7x) compared to the Hong Kong market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 6186 is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: 6186 is overvalued based on its PB Ratio (13x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is China Feihe forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

28.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6186's forecast earnings growth (28% per year) is above the savings rate (1.6%).

Earnings vs Market: 6186's earnings (28% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 6186's revenue (23.1% per year) is forecast to grow faster than the Hong Kong market (9.8% per year).

High Growth Revenue: 6186's revenue (23.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6186's Return on Equity is forecast to be high in 3 years time (32.6%)


Next Steps

Past Performance

How has China Feihe performed over the past 5 years?

71.0%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 6186 has a high level of non-cash earnings.

Growing Profit Margin: 6186's current net profit margins (24.4%) are higher than last year (20.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 6186's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare 6186's past year earnings growth to its 5-year average.

Earnings vs Industry: 6186 earnings growth over the past year (71%) exceeded the Food industry 19.2%.


Return on Equity

High ROE: 6186's Return on Equity (38.5%) is considered high.


Next Steps

Financial Health

How is China Feihe's financial position?


Financial Position Analysis

Short Term Liabilities: 6186's short term assets (CN¥8.6B) exceed its short term liabilities (CN¥4.0B).

Long Term Liabilities: 6186's short term assets (CN¥8.6B) exceed its long term liabilities (CN¥2.2B).


Debt to Equity History and Analysis

Debt Level: 6186's debt to equity ratio (36.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 6186's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 6186's debt is well covered by operating cash flow (111.8%).

Interest Coverage: 6186 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

1.94%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 6186's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6186's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6186's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6186's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6186's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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


CEO

China Feihe has no CEO, or we have no data on them.


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: 6186 only recently listed within the past 12 months, with total shares outstanding growing by 0% in the past year..


Top Shareholders

Company Information

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


Key Information

  • Name: China Feihe Limited
  • Ticker: 6186
  • Exchange: SEHK
  • Founded: 1962
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$118.813b
  • Shares outstanding: 8.93b
  • Website: https://www.feihe.com

Number of Employees


Location

  • China Feihe Limited
  • Star City International Building
  • C-16th Floor
  • Beijing
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
6186SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDNov 2019
6186SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2019
6186SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDNov 2019
CFEI.YOTCPK (Pink Sheets LLC)UNSPONSORED ADSUSUSDJan 2020

Biography

China Feihe Limited, together with its subsidiaries, manufactures and distributes infant milk formula products in the People’s Republic of China, Hong Kong, the United States, and Canada. The company offers a range of dairy products, adult milk powders, liquid milk products, goat milk infant formula and soybean powder, and other products. It is also involved in the sale of vitamins, minerals, herbs, and other nutritional supplements. The company sells its products through distributors, retailers, maternity store operators, supermarkets, and hypermarket chains; and e-commerce platforms, such as Tmall, JD.com, and Suning.com, as well as through its Website and mobile application, including WeChat. China Feihe Limited was founded in 1962 and is headquartered in Beijing, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 14:43
End of Day Share Price2020/04/07 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.