Vedan International (Holdings) Ltd. (2317) AI Stock Analysis

• Market Cap: HK$989.78M
• Dividend Yield: 10.11%
• Average Volume (3M): 90.90K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.40
• Revenue Growth: -1.88%
• EPS Growth: 129.25%
• Country: HK
• Employees: 4,033
• Sector: Consumer Defensive
• Sector Strength: 69
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 1,522,742,100
• 10 Day Avg. Volume: 47,400
• 30 Day Avg. Volume: 90,900
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: HK$0.50
• Price Target Upside: -23.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: HK$0.50 ▼(-23.08% Downside)

Vedan International's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's robust balance sheet and high dividend yield enhance its investment appeal. Technical analysis indicates a neutral trend, slightly tempering the overall score.

Vedan International (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Vedan International (Holdings) Limited, an investment holding company, produces and sells fermentation-based amino acids, food additive products, biochemical products, and cassava starch based industrial products. It offers starch-based industrial products, including native starch, a cassava starch for the production of sausages, ice-creams, canned soup, and noodles; modified starch for industrial applications in textile, paper, food, feed-stuff, and cosmetic products; and glucose syrup for processing of food, confectionery, and bakery products, as well as to produce monosodium glutamate (MSG) and glutamic acid (GA) products, and lysine. The company also provides specialty chemical products, such as caustic soda for the production of MSG products, as well as used in metal processing and food, textile, cosmetics, paint, water treatment, and detergent products; hydrochloric acid for the production of GA products, as well as used in food and textile products, beverages, seafood processing, and metal processing; and hypochlorite that is used as bleaching agent and for the production of detergent products. In addition, it offers PGA hydrogels, gamma-poly-glutamic acid products, and poly-glutamic acid hydrogels. The company sells its products under the VEDAN brand. It serves food distributors and international trading companies, as well as manufacturers of food, paper, textile, and chemical products. It operates in Vietnam, Japan, the People's Republic of China, the United States, Taiwan, ASEAN countries, and internationally. Vedan International (Holdings) Limited is based in Kowloon, Hong Kong.

How the Company Makes Money

Vedan International (Holdings) Ltd. generates revenue primarily through the sale of its fermentation-based products, which include amino acids, food additives, starches, and other related products. The company's key revenue streams consist of direct sales to food and beverage manufacturers, who use these products as ingredients in their products. Additionally, Vedan has developed partnerships with various distributors to expand its market reach. The company's advanced fermentation technology allows it to produce high-quality and cost-effective products, which contributes significantly to its earnings. Market demand for healthier and more nutritious food options further drives the company's revenue growth.

Vedan International (Holdings) Ltd. Financial Statement Overview

Summary

Vedan International exhibits a strong financial recovery with improved profitability, operational efficiency, and cash flow generation. The balance sheet remains robust with low leverage and high equity ratios, ensuring financial stability. The company is well-positioned with the capability to sustain its operations and pursue growth opportunities.

Income Statement

Vedan International shows a solid recovery in profitability with the net profit margin increasing from 1.81% in 2023 to 4.22% in 2024. The gross profit margin improved to 17.42% in 2024. The revenue growth rate is slightly negative at -1.55% from 2023 to 2024, but the EBIT margin significantly increased to 6.03% in 2024, indicating enhanced operational efficiency. Overall, the income statement reflects a strong rebound in profitability and operational performance.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.09 in 2024, reflecting low leverage. The equity ratio is strong at 81.96%, indicating financial stability. Return on equity improved to 5.31% in 2024, showcasing effective utilization of equity. Overall, the balance sheet is solid with low leverage and high equity, supporting a stable financial structure.

Cash Flow

Vedan International achieved a remarkable increase in free cash flow from 23.23 million in 2023 to 43.02 million in 2024, reflecting a significant growth rate of 85.18%. The operating cash flow to net income ratio improved, indicating strong cash flow generation relative to net income. Free cash flow to net income ratio also improved, supporting financial flexibility. Overall, the cash flow statement highlights robust cash flow generation and efficient capital management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	380.18M	386.17M	451.01M	382.36M	360.74M
Gross Profit	66.24M	55.43M	43.35M	60.37M	72.56M
EBITDA	45.78M	35.14M	15.14M	33.56M	42.70M
Net Income	16.05M	6.99M	-3.86M	11.01M	16.65M
Balance Sheet
Total Assets	368.69M	383.51M	405.97M	389.15M	386.54M
Cash, Cash Equivalents and Short-Term Investments	64.01M	50.36M	47.81M	69.74M	72.16M
Total Debt	28.52M	46.72M	63.10M	43.33M	49.38M
Total Liabilities	66.28M	88.73M	114.25M	87.13M	85.27M
Stockholders Equity	302.19M	294.56M	291.49M	301.79M	301.06M
Cash Flow
Free Cash Flow	43.02M	23.23M	-36.12M	13.46M	9.92M
Operating Cash Flow	48.62M	32.18M	-24.71M	24.87M	45.64M
Investing Cash Flow	-1.02M	-30.03M	-7.34M	15.58M	-45.88M
Financing Cash Flow	-28.90M	-19.71M	16.43M	-17.63M	-83.00K

Vedan International (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.65
• 50DMA: Positive
• 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:2317, the sentiment is Positive. The current price of 0.65 is above the 20-day moving average (MA) of 0.63, above the 50-day MA of 0.62, and above the 200-day MA of 0.54, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.97 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2317.

Vedan International (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	78 Outperform	HK$989.78M	7.91	5.39%	10.11%	-1.88%	129.25%
8476	73 Outperform	HK$1.23B	29.62	15.07%	0.91%	-13.70%	2.27%
Sector *	63 Neutral	$21.00B	13.77	-6.24%	3.09%	3.49%	-6.25%
QQFSF	―	$126.01M	15.38	1.74%	―	―	―
3838	72 Outperform	HK$1.29B	2.47	12.45%	4.54%	-5.08%	359.16%
0829	59 Neutral	HK$1.02B	35.39	1.14%	12.70%	-10.03%	-14.29%
0809	55 Neutral	HK$890.74M	1.15		―	45.65%	-81.70%

Vedan International (Holdings) Ltd. Corporate Events

Vedan International Strengthens Governance with New Nomination Committee Terms

Vedan International (Holdings) Ltd. has outlined the terms of reference for its Nomination Committee, emphasizing the importance of governance and independence within its board structure. The committee will consist of at least three members, primarily independent non-executive directors, and will be responsible for overseeing nominations and appointments to the board, ensuring a robust governance framework.

Vedan International Passes All Resolutions at Annual General Meeting

Vedan International (Holdings) Ltd. held its Annual General Meeting on May 27, 2025, where all proposed resolutions were passed by a significant majority. Key resolutions included the approval of a final dividend, re-election of directors, and authorization for share repurchase and issuance mandates, reflecting strong shareholder support and strategic direction for the company.

Vedan International Declares Final Dividend for 2024

Vedan International (Holdings) Ltd. has announced a final cash dividend of USD 0.0057 per share for the financial year ending December 31, 2024. The dividend will be paid in Hong Kong dollars at a rate of HKD 0.0444999 per share, with an exchange rate of USD 1 to HKD 7.807. Shareholders’ approval was obtained on May 27, 2025, and the payment date is set for June 17, 2025. This announcement reflects the company’s continued commitment to returning value to its shareholders.