Natural Food International Holding Ltd. (1837) AI Stock Analysis

• Market Cap: HK$2.30B
• Dividend Yield: 3.74%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.32
• Revenue Growth: 11.89%
• EPS Growth: 27.80%
• Country: HK
• Employees: 670
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.05
• Shares Outstanding: 2,188,514,200
• 10 Day Avg. Volume: 4,028,400
• 30 Day Avg. Volume: 2,525,866
• PEG Ratio: 0.23
• Price to Book (P/B): 0.69
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 4.24
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: HK$1.00 ▼(-4.76% Downside)

The overall stock score is driven primarily by strong financial performance, particularly in revenue and profit growth, and a robust balance sheet. However, the lack of current cash flow and mixed technical indicators suggest caution. The valuation is reasonable, with an attractive dividend yield providing additional appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term sustainability.

Strong Balance Sheet

A strong balance sheet with minimal leverage provides financial stability and flexibility for future investments and growth.

Profit Margins

High profit margins reflect efficient operations and pricing power, supporting sustained profitability and competitive advantage.

Negative Factors

Cash Flow Management

Lack of current operating cash flow may lead to liquidity issues, affecting the company's ability to fund operations and growth initiatives.

Free Cash Flow

Zero free cash flow limits the company's capacity to invest in new projects or return capital to shareholders, potentially hindering growth.

Cash Flow Challenges

Ongoing cash flow challenges could strain financial resources, impacting the company's ability to navigate market changes and invest in growth.

Natural Food International Holding Ltd. Business Overview & Revenue Model

Company Description

Natural Food International Holding Limited, an investment holding company, engages in the manufacturing, processing, and sale of natural health food products in the People's Republic of China. The company offers management and administration services. As of December 31, 2021, it markets its products through a network of 2,464 concessionary counters; and e-commerce platforms. The company was founded in 2007 and is headquartered in Shenzhen, China.

How the Company Makes Money

Natural Food International Holding Ltd. generates revenue through multiple key streams, primarily from the sale of its organic and natural food products to both retail and wholesale markets. The company has established partnerships with various retailers and distributors, enabling it to reach a wider customer base. Additionally, it may earn income through private label agreements, allowing other brands to sell its products under their own labels. The growing trend towards health-conscious eating also contributes to increased sales, as more consumers are willing to pay a premium for organic and natural food options.

Natural Food International Holding Ltd. Financial Statement Overview

Summary

Natural Food International Holding Ltd. demonstrates strong revenue and profit growth, efficient operations, and a robust balance sheet with minimal leverage. However, cash flow management needs attention to ensure liquidity and operational flexibility in the future.

Income Statement

The company shows a consistent upward trajectory in revenue with a growth rate of 11.66% from the previous year. Gross profit margin is strong at 65.81%, and net profit margin has improved to 9.12%. EBIT and EBITDA margins are healthy at 9.11% and 11.56%, respectively, indicating robust operational efficiency.

Balance Sheet

The balance sheet reflects a solid equity position with an equity ratio of 82.76% and low leverage, indicated by a debt-to-equity ratio of 0.01. Return on equity (ROE) is commendable at 12.35%, showing effective use of equity to generate profit. The company maintains a healthy asset base with increasing stockholders' equity.

Cash Flow

Cash flow analysis shows room for improvement as operating cash flow is zero for the current year, and free cash flow is also zero. The previous year's free cash flow to net income ratio was satisfactory. However, the lack of current operating and free cash flows could pose liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.64B	2.06B	1.85B	1.72B	1.61B	1.44B
Gross Profit	1.08B	1.36B	1.18B	1.10B	1.14B	1.01B
EBITDA	189.72M	238.13M	225.25M	170.32M	129.41M	-17.86M
Net Income	151.09M	187.86M	152.38M	116.46M	86.53M	-14.45M
Balance Sheet
Total Assets	1.86B	1.84B	1.68B	1.52B	1.40B	1.32B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.11B	947.27M	785.84M	650.78M	590.10M
Total Debt	9.63M	11.84M	5.71M	11.27M	16.75M	18.39M
Total Liabilities	316.34M	317.10M	285.59M	280.80M	273.80M	242.63M
Stockholders Equity	1.55B	1.52B	1.40B	1.24B	1.12B	1.08B
Cash Flow
Free Cash Flow	60.31M	246.82M	156.30M	145.73M	99.64M	42.51M
Operating Cash Flow	64.64M	271.45M	185.88M	168.52M	130.82M	86.93M
Investing Cash Flow	-145.55M	-201.38M	-121.13M	-18.61M	-2.07M	-62.50M
Financing Cash Flow	-1.22M	-76.33M	-7.09M	-25.06M	-41.56M	-7.74M

Natural Food International Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.05
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1837, the sentiment is Neutral. The current price of 1.05 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.11, and above the 200-day MA of 0.84, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.08 is Neutral, neither overbought nor oversold. The STOCH value of 20.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1837.

Natural Food International Holding Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	72 Outperform	HK$989.78M	8.29	5.08%	10.44%	-1.19%	-9.05%
1837	68 Neutral	HK$2.30B	10.33	13.72%	3.74%	11.89%	27.80%
8476	65 Neutral	―	―	15.07%	0.89%	-13.70%	2.27%
1583	63 Neutral	HK$981.63M	93.53	0.79%	0.00%	-1.70%	104.41%
3838	63 Neutral	HK$1.08B	2.38	10.38%	5.38%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Natural Food International Holding Ltd. Corporate Events

Natural Food International Launches Award Share Purchase Plan

Natural Food International Holding Ltd. has announced a new Award Share Purchase Plan under its Share Award Scheme. This plan involves purchasing up to 20 million shares from the open market to provide equity incentives to eligible participants, such as employees and contributors to the company’s growth. The plan aims to align the interests of employees and shareholders, supporting talent retention and motivation strategies. The company will use internal financial resources for this plan, ensuring no adverse impact on its financial position or public float requirements. The Board believes the current share price undervalues the company’s prospects and sees the plan as beneficial for both the company and its shareholders.