China Foods Limited (HK:0506)
:0506
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China Foods Limited
(0506)
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Rating:70Outperform
Price Target:
HK$4.00
â–¼(-6.98% 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 low leverage / strong balance sheet
Very low leverage (~1% debt-to-equity in 2025) provides durable financial flexibility, lowering refinancing risk and preserving capacity for dividends, capex or opportunistic M&A. This balance-sheet strength helps the company withstand cyclical shocks and supports long-term capital allocation.
Negative Factors
Stagnant to declining revenue growth
Revenue stagnation, including a roughly -4.2% decline in 2025, signals limited top-line momentum. Persistent flat sales constrain the firm's ability to scale margins and reinvest organically, making future EPS growth dependent on cost reductions, portfolio moves, or cyclical recovery rather than sustained demand expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage / strong balance sheet
Very low leverage (~1% debt-to-equity in 2025) provides durable financial flexibility, lowering refinancing risk and preserving capacity for dividends, capex or opportunistic M&A. This balance-sheet strength helps the company withstand cyclical shocks and supports long-term capital allocation.
Read all positive factors
China Foods Limited (0506) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$9.76B
Dividend Yield3.62%
Average Volume (3M)8.00M
Price to Earnings (P/E)12.7
Beta (1Y)0.32
Revenue Growth2.61%
EPS Growth-0.12%
CountryHK
Employees17,533
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 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...
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
3.77
Negative
4.02
Negative
4.04
Negative
Market Momentum
-0.07
Positive
33.32
Neutral
11.01
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 3.63, above the 50-day MA of 3.77, and above the 200-day MA of 4.04, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 33.32 is Neutral, neither overbought nor oversold. The STOCH value of 11.01 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$487.20B | 29.83 | 44.79% | 1.73% | 22.57% | 31.01% | |
70 Outperform | HK$9.76B | 12.65 | 12.69% | 3.62% | 2.61% | -0.12% | |
69 Neutral | HK$7.47B | 15.36 | 8.86% | 1.41% | 3.16% | 78.05% | |
65 Neutral | HK$33.56B | 15.38 | 15.41% | 5.64% | 4.51% | 10.64% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | HK$6.29B | 13.00 | 7.63% | 2.21% | -3.39% | 91.63% | |
42 Neutral | HK$9.31B | -10.10 | -13.37% | 0.86% | -4.92% | 20.30% |
* Consumer Defensive Sector Average
HK:0506
China Foods Limited
3.49
0.52
17.43%
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7.77
-1.88
-19.52%
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6.18
-2.76
-30.90%
HK:9633
Nongfu Spring Co., Ltd. Class H
43.32
5.59
14.82%
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China Modern Dairy Holdings Ltd.
1.18
0.14
13.46%
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Nissin Foods Co., Ltd.
7.16
0.54
8.16%
China Foods Limited Corporate Events
China Foods Declares Final 2025 Dividend and Sets Payout Timetable
Mar 24, 2026
China Foods Limited has proposed a final ordinary cash dividend of RMB 0.154 per share for the year ended 31 December 2025, subject to shareholder approval at a meeting scheduled for 9 June 2026. The payout underscores the board’s intent to ...
China Foods Delivers Steady 2025 Growth and Lifts Final Dividend
Mar 24, 2026
China Foods Limited reported a 2.7% year-on-year increase in revenue to RMB22.07 billion for 2025, while gross profit margin edged down 0.7 percentage points to 37.1%. The group’s adjusted EBIT rose 6.1% to RMB1.98 billion and adjusted EBITD...
China Foods Sets Out Board Line-Up and Governance Roles
Mar 24, 2026
China Foods Limited has announced the current composition of its eight-member board of directors, detailing the roles of executive, non-executive and independent non-executive directors. The disclosure also clarifies which directors chair or sit o...
China Foods Sets March Board Meeting to Approve 2025 Results and Consider Final Dividend
Mar 2, 2026
China Foods Limited has scheduled a board meeting for 24 March 2026 to review and approve the audited final results for the year ended 31 December 2025 for the company and its subsidiaries. The board will also consider whether to recommend a final...
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.