China Foods Limited (HK:0506)
:0506
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China Foods Limited
(0506)
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Rating:74Outperform
Price Target:
HK$5.00
â–²(16.28% Upside)
Action:ReiteratedDate:12/13/25
China Foods Limited's overall stock score is driven by its strong financial performance and reasonable valuation, balanced by technical indicators suggesting overbought conditions. The company's solid profitability and low leverage risk are significant strengths, but the decline in operating cash flow and potential overvaluation warrant caution.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a solid equity ratio (36.7%) give the company long-term financial flexibility. This durable strength lowers default risk, supports steady dividends or opportunistic M&A, and allows investment in operations without reliance on costly external debt.
Negative Factors
Operating Cash Flow Weakness
A collapse of operating cash flow to zero is a structural red flag for funding sustainability. Even with low debt, persistently weak OCF can force asset sales, cut dividends, or limit capex and working-capital needs, undermining long-term growth initiatives and financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a solid equity ratio (36.7%) give the company long-term financial flexibility. This durable strength lowers default risk, supports steady dividends or opportunistic M&A, and allows investment in operations without reliance on costly external debt.
Read all positive factors
China Foods Limited (0506) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$10.60B
Dividend Yield3.62%
Average Volume (3M)8.00M
Price to Earnings (P/E)13.0
Beta (1Y)0.30
Revenue Growth10.05%
EPS Growth9.01%
CountryHK
Employees17,533
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.13
Shares Outstanding2,797,223,400
10 Day Avg. Volume2,983,214
30 Day Avg. Volume8,003,922
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)1.02
Price to Sales (P/S)0.31
P/FCF Ratio3.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$4.91Price Target Upside14.19% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.33
Revenue Forecast (FY)HK$23.04B
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
China Foods Limited generates revenue through multiple streams, including the sale of its branded food products, which encompass sauces, snacks, and other packaged foods. The company leverages its established distribution network to reach a broad ...
China Foods Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.43B | 21.49B | 21.45B | 20.97B | 19.78B | 17.25B |
| Gross Profit | 8.88B | 8.12B | 7.54B | 7.50B | 7.06B | 6.83B |
| EBITDA | 2.74B | 2.61B | 2.52B | 2.19B | 1.89B | 1.81B |
| Net Income | 873.15M | 860.53M | 832.58M | 659.84M | 572.41M | 498.73M |
Balance Sheet | ||||||
| Total Assets | 18.75B | 17.60B | 16.23B | 15.06B | 15.17B | 15.11B |
| Cash, Cash Equivalents and Short-Term Investments | 5.06B | 4.02B | 2.55B | 1.11B | 1.68B | 1.90B |
| Total Debt | 78.34M | 85.58M | 79.38M | 57.71M | 77.23M | 110.47M |
| Total Liabilities | 8.60B | 7.40B | 6.54B | 6.20B | 6.78B | 7.03B |
| Stockholders Equity | 6.61B | 6.46B | 6.02B | 5.52B | 5.16B | 4.95B |
Cash Flow | ||||||
| Free Cash Flow | 2.37B | 2.07B | 1.80B | 259.17M | 360.41M | 1.65B |
| Operating Cash Flow | 3.09B | 2.85B | 2.43B | 1.14B | 1.07B | 2.21B |
| Investing Cash Flow | -622.86M | -560.83M | -564.43M | -851.23M | -846.64M | -374.88M |
| Financing Cash Flow | -1.08B | -564.93M | -609.65M | -844.13M | -496.06M | -813.82M |
China Foods Limited Technical Analysis
Negative
4.30
Price Trends
4.08
Negative
4.19
Negative
3.96
Negative
Market Momentum
-0.09
Positive
40.33
Neutral
20.18
Neutral
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 3.92, above the 50-day MA of 4.08, and above the 200-day MA of 3.96, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.33 is Neutral, neither overbought nor oversold. The STOCH value of 20.18 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | HK$10.60B | 12.99 | 12.69% | 3.62% | 10.05% | 9.01% | |
71 Outperform | HK$35.07B | 15.79 | 15.41% | 5.64% | 8.19% | 23.16% | |
64 Neutral | HK$534.88B | 30.61 | 42.43% | 1.73% | 4.14% | 7.35% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | HK$7.57B | 23.14 | 7.42% | 1.41% | 7.29% | -33.19% | |
58 Neutral | HK$6.54B | 13.00 | 7.63% | 2.21% | -3.39% | 91.63% | |
55 Neutral | HK$11.68B | -10.36 | -23.27% | 0.86% | -2.69% | -695.87% |
* Consumer Defensive Sector Average
HK:0506
China Foods Limited
3.79
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China Foods Limited Corporate Events
China Foods Limited Optimizes Financial Management with New Cash Pooling Agreement
Nov 10, 2025
China Foods Limited has entered into a Cash Pooling Management Agreement with COFCO Finance (HK) to enhance financial management and fund utilization efficiency. This agreement, effective from November 10, 2025, for three years, involves COFCO Fin...
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.