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Tingyi (Cayman Islands) Holding Corp 00322 Stock Quote

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Morningstar‘s Stock Analysis 00322

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Is it the right time to buy or sell?
Is it the right time to buy or sell?

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Economic Moat


Capital Allocation


Narrow-Moat Tingyi To Have Slower Beverage Growth in 2022; Lowering FVE to HKD 14.90

Jacky Tsang Equity Analyst

Analyst Note

| Jacky Tsang |

We are increasing our moat rating for Tingyi to narrow from none but lowering our fair value estimate to HKD 14.90 per share from HKD 15.90 due to a lower structural growth assumption. Although we now believe Tingyi’s distribution network and entrenched relationship with retailers warrants a narrow economic moat, we do not see material upside to the stock versus our fair value estimate. The recent lockdowns in China have hampered beverage sales due to reduced foot traffic, whereas food quality issues have weighed on flagship instant noodle sales. Rising input costs will further exacerbate margin pressure in 2022. We see risks to 2022 sales growth guided by management in the first quarter, especially for the beverage segment. Our fair value estimate implies 25 times forward P/E, which is close to Tingyi’s historical average. Despite being priced at a slight discount versus our fair value estimate, we think there is near-term risk of growth undershooting company expectations.

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Key Statistics 00322

Company Profile 00322

Business Description

Tingyi is a leading producer of instant noodles and RTD beverages in China, with its Master Kong brand. The company commenced its instant noodle business in the country in 1992 and expanded into beverages in 1996. In March 2012, Tingyi formed a strategic alliance with PepsiCo and became the exclusive manufacturer and distributor of Pepsi’s nonalcoholic drinks in China.

No. 1688, Wuzhong Road, Building A, Minhang District
Shanghai, 201103, China, People's Republic of
T +86 2131754604
Industry Packaged Foods
Most Recent Earnings Dec 31, 2018
Fiscal Year End Dec 31, 2022
Stock Type
Employees 62,107