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China Foods Limited
(0506)
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Rating:70Outperform
Price Target:
HK$3.50
▼(-18.60% Downside)
Action:Reiterated
Date:05/03/26
The score is driven primarily by strong financial resilience (very low leverage, steady profitability, and positive free cash flow). This is tempered by weak technical signals (below key moving averages and negative MACD) and limited growth momentum, while reasonable valuation and a solid dividend yield provide support.
Positive Factors
Very strong balance sheet
Extremely low leverage and growing equity give the company durable financial flexibility. Low refinancing risk supports stable dividends, recurring capex, or opportunistic M&A, and provides a buffer in downturns, preserving long-term solvency and strategic optionality.
Negative Factors
Stagnant to shrinking revenue
Flat-to-declining top-line reduces scope for scale-driven margin expansion and constrains absolute earnings upside. Without durable revenue growth, long-term EPS improvements must rely on cost cuts or share gains, making progressive profit growth harder to sustain.
Read all positive and negative factors
Positive Factors
Negative Factors
Very strong balance sheet
Extremely low leverage and growing equity give the company durable financial flexibility. Low refinancing risk supports stable dividends, recurring capex, or opportunistic M&A, and provides a buffer in downturns, preserving long-term solvency and strategic optionality.
Read all positive factors
China Foods Limited (0506) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$8.64B
Dividend Yield3.62%
Average Volume (3M)8.00M
Price to Earnings (P/E)8.6
Beta (1Y)0.35
Revenue Growth2.61%
EPS Growth-0.12%
CountryHK
Employees18,899
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.31
Shares Outstanding2,797,223,400
10 Day Avg. Volume2,983,214
30 Day Avg. Volume8,003,922
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.58
Price to Sales (P/S)0.49
P/FCF Ratio5.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.33
Revenue Forecast (FY)HK$23.05B
China Foods Limited Business Overview & Revenue Model
Company Description
China Foods Limited, an investment holding company, manufactures, distributes, markets, and sells Coca-Cola series products in the People's Republic of China. The company offers sparkling drinks, juices, water, milk drinks, energy drinks, tea, cof...
How the Company Makes Money
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China Foods Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 22.07B | 21.49B | 21.45B | 20.97B | 19.78B |
| Gross Profit | 8.18B | 8.12B | 7.54B | 7.50B | 7.06B |
| EBITDA | 2.81B | 2.61B | 2.52B | 2.19B | 1.89B |
| Net Income | 861.97M | 860.53M | 832.58M | 659.84M | 572.41M |
Balance Sheet | |||||
| Total Assets | 18.39B | 17.60B | 16.23B | 15.06B | 15.17B |
| Cash, Cash Equivalents and Short-Term Investments | 4.55B | 4.02B | 2.55B | 1.11B | 1.68B |
| Total Debt | 68.30M | 85.58M | 79.38M | 57.71M | 77.23M |
| Total Liabilities | 7.83B | 7.40B | 6.54B | 6.20B | 6.78B |
| Stockholders Equity | 6.90B | 6.46B | 6.02B | 5.52B | 5.16B |
Cash Flow | |||||
| Free Cash Flow | 2.17B | 2.07B | 1.80B | 259.17M | 360.41M |
| Operating Cash Flow | 3.23B | 2.85B | 2.43B | 1.14B | 1.07B |
| Investing Cash Flow | -1.06B | -560.83M | -564.43M | -851.23M | -846.64M |
| Financing Cash Flow | -1.63B | -564.93M | -609.65M | -844.13M | -496.06M |
China Foods Limited Technical Analysis
Negative
4.30
Price Trends
3.37
Negative
3.60
Negative
3.83
Negative
Market Momentum
-0.07
Positive
32.70
Neutral
10.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0506, the sentiment is Negative. The current price of 4.3 is above the 20-day moving average (MA) of 3.27, above the 50-day MA of 3.37, and above the 200-day MA of 3.83, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 32.70 is Neutral, neither overbought nor oversold. The STOCH value of 10.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0506.
China Foods Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$478.42B | 26.12 | 44.79% | 1.73% | 22.57% | 31.01% | |
76 Outperform | HK$92.10B | 21.56 | 17.79% | ― | ― | ― | |
70 Outperform | HK$8.64B | 8.63 | 12.76% | 3.62% | 2.61% | -0.12% | |
69 Neutral | HK$21.29B | 68.87 | 11.48% | 1.98% | 1.59% | 10.98% | |
65 Neutral | HK$29.07B | 12.14 | 15.51% | 5.64% | 4.51% | 10.64% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | HK$17.29B | 15.45 | 8.95% | 6.30% | ― | ― |
* Consumer Defensive Sector Average
HK:0506
China Foods Limited
3.09
0.18
6.11%
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3.16
18.19%
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3.49
8.93%
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China Resources Beverage (Holdings) Company Limited
7.21
-4.75
-39.72%
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242.60
-271.40
-52.80%
China Foods Limited Corporate Events
China Foods Sets Out Board Line-Up and Committee Roles
Jun 10, 2026
China Foods Limited has detailed the current composition of its eight-member board of directors, specifying which directors serve as executive, non-executive and independent non-executive members. The company has also clarified the leadership and ...
China Foods reshapes board with COFCO branding veteran as new non-executive director
Jun 10, 2026
China Foods Limited, a Hong Kong-listed food company majority-owned by COFCO Corporation, leverages its parent’s extensive presence in China’s consumer and agribusiness markets. The group’s backing supports the company’s po...
China Foods Sets Final Dividend and HKD Payout Terms for 2025
Jun 9, 2026
China Foods Limited has declared a final ordinary cash dividend of RMB 0.154 per share for the financial year ended 31 December 2025, with shareholder approval obtained on 9 June 2026. The dividend will be paid in Hong Kong dollars at HKD 0.177 pe...
China Foods Shareholders Approve All AGM Resolutions, Back Dividend and Board Mandates
Jun 9, 2026
Shareholders of China Foods Limited approved all 12 resolutions at the 9 June 2026 annual general meeting, including the adoption of 2025 audited accounts and a final dividend of RMB0.154 per share. Investors also backed the election and re-electi...
China Foods Sets 2026 AGM to Approve Dividend, Board Changes and Share Issue Mandate
May 7, 2026
China Foods Limited has called an annual general meeting for 9 June 2026, to be held electronically via the Vistra eVoting Portal, where shareholders will review the audited financial statements for the year ended 31 December 2025 and vote on a pr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.