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

• Market Cap: HK$989.78M
• Dividend Yield: 10.44%
• Average Volume (3M): 39.07K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.41
• Revenue Growth: -1.19%
• EPS Growth: -9.05%
• Country: HK
• Employees: 4,033
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 1,522,742,100
• 10 Day Avg. Volume: 51,200
• 30 Day Avg. Volume: 39,066
• PEG Ratio: 0.05
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 2.50
• 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: 72 Outperform
• Price Target: HK$0.50 ▼(-23.08% Downside)

Vedan International's strong financial performance and attractive valuation are the primary drivers of its stock score. However, weak technical indicators suggest bearish momentum, which slightly offsets the positive aspects. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Flow Generation

The significant growth in free cash flow demonstrates Vedan's strong cash generation ability, enhancing its financial flexibility and capacity to invest in growth opportunities.

Balance Sheet Health

Vedan's robust balance sheet with low leverage and high equity ratios ensures financial stability, providing a solid foundation for sustainable growth and resilience against economic fluctuations.

Operational Efficiency

The improvement in EBIT margin highlights enhanced operational efficiency, indicating Vedan's ability to manage costs effectively and improve profitability, which is crucial for long-term competitiveness.

Negative Factors

Revenue Growth Decline

The decline in revenue growth suggests challenges in expanding market share or product demand, which could impact long-term growth prospects if not addressed through strategic initiatives.

Earnings Decline

The negative EPS growth reflects declining profitability, which may hinder Vedan's ability to reinvest in business operations and maintain competitive positioning over time.

Market Position Challenges

The negative revenue growth rate suggests difficulties in maintaining or expanding Vedan's market position, potentially impacting its ability to capitalize on industry trends and consumer demand shifts.

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 generates revenue through multiple streams, primarily from the sale of its food ingredient products, which include monosodium glutamate (MSG), seasonings, and sauces. These products are marketed to food manufacturers, restaurants, and retailers, contributing significantly to the company's income. Additionally, the company has established partnerships with distributors and retailers to expand its market reach, enhancing its sales capabilities. The chemical segment, which includes products like amino acids and other industrial chemicals, also adds to the revenue. Furthermore, Vedan International benefits from economies of scale in production, allowing for competitive pricing and increased profitability, while also relying on ongoing investments in product development and market expansion to drive future earnings.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	379.30M	380.18M	386.17M	451.01M	382.36M	360.74M
Gross Profit	65.15M	66.24M	55.43M	43.35M	60.37M	72.56M
EBITDA	44.42M	45.78M	35.14M	15.79M	33.56M	44.56M
Net Income	15.31M	16.05M	6.99M	-4.39M	11.01M	16.65M
Balance Sheet
Total Assets	371.45M	368.69M	383.51M	405.97M	389.15M	386.54M
Cash, Cash Equivalents and Short-Term Investments	61.66M	64.01M	50.36M	47.81M	69.74M	72.16M
Total Debt	30.88M	28.52M	46.72M	63.10M	43.33M	49.38M
Total Liabilities	69.81M	66.28M	88.73M	114.25M	87.13M	85.27M
Stockholders Equity	301.40M	302.19M	294.56M	291.49M	301.79M	301.06M
Cash Flow
Free Cash Flow	45.97M	43.02M	23.23M	-36.12M	13.46M	9.92M
Operating Cash Flow	53.65M	48.62M	32.18M	-24.71M	24.87M	45.64M
Investing Cash Flow	-9.69M	-1.02M	-30.03M	-7.34M	15.58M	-45.88M
Financing Cash Flow	-33.99M	-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: Negative
• 100DMA: Negative
• 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 below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.66, and above the 200-day MA of 0.62, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 57.14 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	72 Outperform	HK$989.78M	8.29	5.08%	10.44%	-1.19%	-9.05%
8476	65 Neutral	―	―	15.07%	0.89%	-13.70%	2.27%
1583	63 Neutral	HK$996.73M	94.96	0.79%	0.00%	-1.70%	104.41%
3838	63 Neutral	HK$1.08B	2.38	10.38%	5.41%	-6.58%	16.23%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
0829	54 Neutral	HK$839.92M	-35.62	-0.99%	15.38%	-4.42%	-157.03%
0809	44 Neutral	HK$1.09B	0.75	―	―	42.14%	-81.25%

Vedan International (Holdings) Ltd. Corporate Events

Vedan International Confirms Compliance with Listing Rules in 2024 Annual Report

Vedan International (Holdings) Limited, incorporated in the Cayman Islands, has issued a supplemental announcement regarding its 2024 Annual Report. The company confirmed that all related party transactions disclosed in the report are continuing connected transactions, with the exception of a fully exempted transaction involving agency commission income from Taiwan Vedan. The company has adhered to the compliance requirements of the Hong Kong Stock Exchange’s Listing Rules.