Vitasoy International Holdings (0345) AI Stock Analysis

• Market Cap: HK$10.02B
• Dividend Yield: 1.71%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 80.6
• Beta (1Y): 0.52
• Revenue Growth: 2.95%
• EPS Growth: 86.94%
• Country: HK
• Employees: 6,067
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 0.16
• Shares Outstanding: 1,073,094,000
• 10 Day Avg. Volume: 2,887,619
• 30 Day Avg. Volume: 2,129,936
• PEG Ratio: -2.77
• Price to Book (P/B): 5.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 54.18
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$9.50
• Price Target Upside: 1.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ―

Vitasoy International Holdings' stock is supported by strong cash flow generation and improving leverage metrics, which are positive for financial stability. However, declining revenue and operational inefficiencies pose challenges to profitability. Technical analysis indicates bullish momentum, but the high P/E ratio may signal overvaluation, which could deter value-focused investors. Overall, the stock presents a mixed opportunity with significant upside potential if revenue trends reverse.

Positive Factors

Earnings

Better-than-expected sales trend in China, improving commodity price trends, and successful marketing campaigns contribute positively to Vitasoy's performance.

Financial Performance

Improvement in operating profit across core regions China and HK and reduction in operating losses in Australia are key drivers.

Market Position

Vitasoy International is a leading market player in plant-based protein beverages, focusing on soy across China, Hong Kong, Australia, New Zealand, Singapore, and the Philippines.

Negative Factors

Competition

Competition remains intense, particularly in the sugar-free tea category.

Competitive Landscape

The intense competitive landscape in China hinders Vitasoy's recovery despite improvements in sales execution and business efficiency.

Vitasoy International Holdings Business Overview & Revenue Model

Company Description

Vitasoy International Holdings Limited, together with its subsidiaries, manufactures and sells food and beverages in Mainland China, Hong Kong, Australia, New Zealand, and Singapore. It offers soya milk and other plant milk products, tea, water, juice, tofu, etc. The company also operates tuck shops and catering business; sells beverages; and exports soya related products, as well as invests in properties. It sells its products through distributors and retailers. The company was incorporated in 1940 and is based in Tuen Mun, Hong Kong.

How the Company Makes Money

Vitasoy International Holdings generates revenue primarily through the sale of its plant-based food and beverage products. The company's key revenue streams include retail sales in supermarkets, convenience stores, and health food stores, as well as distribution through food service channels. Vitasoy has also established significant partnerships and distribution agreements to expand its market reach in various regions. Its earnings are bolstered by a strong brand presence and consumer loyalty in the plant-based nutrition sector, with a focus on innovation and product development to meet evolving consumer preferences. Additionally, strategic marketing and advertising efforts contribute to maintaining and growing its market share in the competitive beverage industry.

Vitasoy International Holdings Financial Statement Overview

Summary

Vitasoy International Holdings demonstrates mixed financial performance. While the income statement shows declining revenue and low net profit margins, the balance sheet and cash flow statement reveal improving leverage metrics and strong cash flow generation. The company is managing costs effectively, but needs to focus on revenue growth and operational efficiency to enhance profitability.

Income Statement

Vitasoy's revenue has shown a declining trend over the past few years, with a decrease from HKD 7.52 billion in 2021 to HKD 6.22 billion in 2024. The gross profit margin improved from 44.5% in 2023 to 49.9% in 2024, indicating better cost management. However, net profit margin has been volatile, recovering to 1.87% in 2024 from a low of -2.44% in 2022. EBIT margin remains relatively low at 2.98% for 2024, reflecting a need for operational efficiency improvements.

Balance Sheet

The company's balance sheet shows moderate leverage with a debt-to-equity ratio of 0.19 in 2024, down from 0.22 in 2023, indicating a reduction in reliance on debt. Return on equity improved to 3.87% in 2024 from 1.53% in 2023, suggesting enhanced profitability. The equity ratio of 53.3% in 2024 reflects a strong equity base, providing stability and reducing financial risk.

Cash Flow

The cash flow statement highlights significant growth in free cash flow from HKD 300 million in 2023 to HKD 644 million in 2024, indicating improved cash generation. The operating cash flow to net income ratio is robust at 6.79 in 2024, showing strong cash generation relative to net income. The free cash flow to net income ratio is also strong at 5.54, underscoring efficient cash management.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
6.27B	6.22B	6.34B	6.50B	7.52B	7.23B
	Gross Profit
3.16B	3.10B	2.82B	3.07B	3.95B	3.85B
	EBIT
271.34M	185.43M	89.67M	104.90M	1.04B	966.69M
	EBITDA
689.50M	601.23M	619.28M	346.77M	1.29B	1.37B
	Net Income Common Stockholders
124.20M	116.37M	45.72M	-158.75M	548.35M	535.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.34B	794.45M	555.29M	621.86M	970.52M	848.27M
	Total Assets
6.08B	5.64B	5.85B	6.81B	7.28B	6.41B
	Total Debt
685.58M	558.85M	660.87M	677.59M	335.74M	485.00M
	Net Debt
-653.62M	-84.10M	106.09M	56.22M	-634.28M	-362.81M
	Total Liabilities
2.81B	2.52B	2.75B	3.24B	3.32B	2.99B
	Stockholders Equity
3.16B	3.00B	2.98B	3.26B	3.62B	3.13B
Cash Flow		Free Cash Flow
681.26M	644.25M	300.21M	-295.70M	617.89M	210.89M
	Operating Cash Flow
824.07M	790.54M	487.68M	113.17M	1.26B	1.27B
	Investing Cash Flow
-131.92M	-317.52M	-481.79M	-405.82M	-641.86M	-1.05B
	Financing Cash Flow
-71.81M	-403.49M	-58.95M	-68.05M	-548.78M	-334.55M

Vitasoy International Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0345, the sentiment is Negative. The current price of 9.34 is below the 20-day moving average (MA) of 9.39, below the 50-day MA of 9.60, and above the 200-day MA of 8.88, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0345.

Vitasoy International Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0345	66 Neutral	HK$10.02B	80.59	4.00%	1.71%	2.95%	86.94%
Sector *	65 Neutral	$8.75B	15.13	4.69%	4.84%	3.64%	-2.51%
BTSDF		$968.76M	20.91	-0.91%	1.10%	―	―
1475	71 Outperform	HK$7.19B	37.24	5.15%	2.31%	3.95%	-42.81%
1579	64 Neutral	HK$12.77B	15.92	15.77%	6.49%	4.68%	-14.34%
9676	64 Neutral	HK$8.35B	32.64		0.50%	―	―
1610	62 Neutral	HK$7.10B	12.17	5.82%	―	38.41%	―