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Tingyi (Cayman Islands) Holding Corp 00322

Morningstar Rating
HKD 8.72 −0.01 (0.11%)
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Company Report

China Ready-To-Drink Sector: Diverging Performance but Nongfu Set To See Stronger Growth Than Tingyi

We revised our earnings forecasts for narrow-moat-rated Nongfu Spring and Tingyi after a fresh look at their growth outlook in the China ready-to-drink, or RTD, beverage market. We lifted our 2023-24 net income forecasts for Nongfu Spring by 9%-16% but lowered estimates for Tingyi by 6%-22%. Nongfu Spring has gained market share over peers including Tingyi in the RTD tea category, resulting in robust revenue growth in the second half of 2023. We expect Nongfu’s operating outperformance in this segment to continue in 2024. Tingyi, on the contrary, is set to face sales headwinds across the beverage and instant noodle categories.

Price vs Fair Value

00322 is trading at a 31% discount.
Price
HKD 8.73
Fair Value
HKD 47.10
Uncertainty
Medium
1-Star Price
HKD 21.67
5-Star Price
HKD 9.42
Economic Moat
Jqlhhyr
Capital Allocation
Ykddmmr

Bulls Say, Bears Say

Bulls

Continued urbanization and rising personal income should offer plenty of headroom for Tingyi to grow beverage sales.

Bears

Instant noodle food is considered an unhealthy and inferior option by consumers, which could lead to a slower growth rate versus the overall economy as volumes decrease.

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News

Trading Information

Previous Close Price
HKD 8.73
Day Range
HKD 8.578.84
52-Week Range
HKD 7.0714.54
Bid/Ask
HKD 8.71 / HKD 8.72
Market Cap
HKD 49.13 Bil
Volume/Avg
9.3 Mil / 6.9 Mil

Key Statistics

Price/Earnings (Normalized)
16.18
Price/Sales
0.54
Dividend Yield (Trailing)
2.95%
Dividend Yield (Forward)
2.95%
Total Yield
2.95%

Company Profile

Tingyi is a major producer of instant noodles and RTD beverages in China, with its Master Kong brand being the most widely known. 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.
Sector
Consumer Defensive
Industry
Packaged Foods
Stock Style Box
Large Core
Total Number of Employees
65,956

Competitors

Valuation

Metric
00322
09633
00220
Price/Earnings (Normalized)
16.1846.8216.60
Price/Book Value
3.6920.781.49
Price/Sales
0.5411.940.62
Price/Cash Flow
7.2338.158.57
Price/Earnings
00322
09633
00220

Financial Strength

Metric
00322
09633
00220
Quick Ratio
0.700.990.60
Current Ratio
0.841.080.82
Interest Coverage
8.13143.5430.56
Quick Ratio
00322
09633
00220

Profitability

Metric
00322
09633
00220
Return on Assets (Normalized)
6.18%22.38%6.69%
Return on Equity (Normalized)
27.28%42.70%11.59%
Return on Invested Capital (Normalized)
10.53%35.73%8.95%
Return on Assets
00322
09633
00220
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