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Uni-President China Holdings Ltd 00220

Morningstar Rating
HK$6.34 +0.04 (0.63%)
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Company Report

Refreshing the Beverage Product Portfolio Could Raise Longer-Term Top-Line and Profit Growth for UPC

Uni-President China is the second-largest producer of instant noodles and ready-to-drink, or RTD, tea in China. The company underwent a period of fast revenue growth in the early 2010s and has transitioned to a more stable state in recent years. According to Euromonitor, its market share in instant noodles and RTD tea rank second after Tingyi, at around low-teens and midteens, respectively. However, new entrants emerging in ready meals and RTD drinks could gain share in the company's traditional categories.

Price vs Fair Value

00220 is trading within a range we consider fairly valued.
Price
HK$6.34
Fair Value
HK$8.60
Uncertainty
High
1-Star Price
HK$69.26
5-Star Price
HK$8.74
Economic Moat
Lqgdp
Capital Allocation
Zrfgdvwdr

Bulls Say, Bears Say

Bulls

The company has been able to maintain its market share in the major product categories despite the highly competitive environment, proving its expertise in the China packaged food and drinks markets.

Bears

The RTD drinks and instant noodle markets in China are mostly saturated, with challenges from competing channels like freshly made tea chains and food delivery apps and so on.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if 00220 is a good fit for your portfolio.

Trading Information

Previous Close Price
HK$6.30
Day Range
HK$6.216.47
52-Week Range
HK$4.307.55
Bid/Ask
HK$6.33 / HK$6.34
Market Cap
HK$27.38 Bil
Volume/Avg
2.3 Mil / 8.9 Mil

Key Statistics

Price/Earnings (Normalized)
19.53
Price/Sales
0.87
Dividend Yield (Trailing)
7.35%
Dividend Yield (Forward)
7.35%
Total Yield
7.35%

Company Profile

Uni-President China is a leading instant food and beverage producers in mainland China. Its major products include RTD tea, coffee, juice, and instant food such as instant noodles and self-heating packaged food. It is majority-owned by parent company Uni-President Enterprises Corporation, a leading food conglomerate in Taiwan.
Sector
Consumer Defensive
Industry
Beverages - Non-Alcoholic
Stock Style Box
Large Value
Total Number of Employees
33,539

Competitors

Valuation

Metric
00220
00322
09633
Price/Earnings (Normalized)
19.5317.1325.83
Price/Book Value
1.863.3810.91
Price/Sales
0.870.587.28
Price/Cash Flow
10.357.9222.00
Price/Earnings
00220
00322
09633

Financial Strength

Metric
00220
00322
09633
Quick Ratio
0.690.481.28
Current Ratio
0.950.701.43
Interest Coverage
37.979.17148.36
Quick Ratio
00220
00322
09633

Profitability

Metric
00220
00322
09633
Return on Assets (Normalized)
6.16%5.75%26.35%
Return on Equity (Normalized)
10.42%24.79%48.37%
Return on Invested Capital (Normalized)
8.30%9.81%40.36%
Return on Assets
00220
00322
09633
See how this stock stacks up to its competitors with Morningstar Investor

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