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

• Market Cap: HK$2.49B
• Dividend Yield: 3.36%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): 11.2
• Beta (1Y): 0.33
• 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

• Rating: 71 Outperform
• Price Target: HK$1.50 ▲(26.05% Upside)

The stock is supported by strong financial performance and a solid valuation, but technical indicators suggest caution due to overbought conditions. Cash flow issues could pose future liquidity risks.

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 primarily through the sale of its natural food products. The company sources raw materials and transforms them into packaged goods that are distributed through various sales channels, including retail stores, online platforms, and direct sales networks. By focusing on high-demand health and wellness trends, the company capitalizes on the growing consumer preference for natural and organic foods. Additionally, strategic partnerships with retailers and distributors enhance its market reach and contribute to its revenue streams. The company's ability to innovate and introduce new products in response to market trends further supports its profitability and growth.

Natural Food International Holding Ltd. Financial Statement Overview

Summary

Strong revenue and profit growth with robust operational efficiency and a solid balance sheet featuring minimal leverage. However, cash flow management issues could pose future liquidity challenges.

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

Natural Food International Holding Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.19
• 50DMA: Positive
• 100DMA: Positive
• 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:1837, the sentiment is Positive. The current price of 1.19 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 0.97, and above the 200-day MA of 0.71, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 65.93 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$1.04B	8.67	5.08%	9.98%	-1.19%	-9.05%
1837	71 Outperform	HK$2.49B	11.22	13.72%	3.36%	11.89%	27.80%
1583	68 Neutral	$981.63M	93.53	0.79%	0.00%	-1.70%	104.41%
3838	65 Neutral	HK$1.15B	2.53	10.38%	5.10%	-6.58%	16.23%
8476	65 Neutral	HK$1.06B	25.12	15.07%	1.12%	-13.70%	2.27%
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 Reports Strong H1 2025 Financial Results

Natural Food International Holding Ltd. reported a 14.3% increase in revenue for the first half of 2025, reaching RMB 1,134,713,000, compared to the same period in 2024. The company’s gross profit and profit before tax also saw significant increases of 14.3% and 18.9%, respectively. Despite these positive financial results, the Board did not recommend an interim dividend for the period. This performance highlights the company’s strong market positioning and operational efficiency, which could positively impact stakeholders’ confidence.

The most recent analyst rating on (HK:1837) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Natural Food International Holding Ltd. stock, see the HK:1837 Stock Forecast page.

Natural Food International Announces Upcoming Board Meeting

Natural Food International Holding Ltd. has announced a board meeting scheduled for August 27, 2025. The meeting will address the approval of the company’s interim results for the first half of 2025 and consider the payment of an interim dividend. This announcement is significant as it may impact the company’s financial outlook and shareholder returns.