Guoquan Food (Shanghai) Company., Ltd. Class H (2517) AI Stock Analysis

• Market Cap: HK$11.44B
• Dividend Yield: 4.45%
• Average Volume (3M): 16.38M
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.55
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 2,119
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.08
• Shares Outstanding: 2,747,360,400
• 10 Day Avg. Volume: 25,975,110
• 30 Day Avg. Volume: 16,384,972
• PEG Ratio: -3.66
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 12.28
• 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$4.85
• Price Target Upside: 37.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$5.00 ▲(41.64% Upside)

Guoquan Food's overall stock score is driven by strong technical indicators and a solid financial position, despite challenges in cash flow management. The high P/E ratio suggests the stock may be overvalued, but the dividend yield provides some investor appeal. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Balance Sheet Strength

High equity ratio and negligible leverage provide durable financial resilience. This balance-sheet strength supports capital allocation flexibility, lowers refinancing risk, and enables funding for working capital, M&A, or downturns without pressuring liquidity over the coming months.

Distribution & Brand

Strong brand recognition plus broad retail and e-commerce partnerships give the company sustained market access and channel diversification. This durable distribution footprint lowers go-to-market costs, aids new product rollout, and stabilizes revenues across consumer channels.

Gross Margin and Revenue Trends

A near-22% gross margin with mid-single-digit revenue growth indicates underlying product profitability and modest top-line expansion. These fundamentals support reinvestment in product development and marketing to sustain competitive positioning over multiple quarters.

Negative Factors

Weak Operating Cash Flow

Zero operating cash flow is a structural concern, limiting the firm's ability to self-fund working capital, capital expenditures, dividends, or acquisitions. Continued weak cash generation raises reliance on external financing and constrains durable investment capacity.

Thin and Declining Net Margin

A low net margin that declined year-over-year leaves little buffer for commodity inflation or margin pressure. Persistently thin net profits reduce retained earnings available for reinvestment and weaken the firm's ability to improve competitiveness over the medium term.

Opaque Free Cash Flow / CapEx Reporting

Lack of clear free cash flow and CapEx disclosure complicates assessment of capital allocation and reinvestment levels. This opacity risks underinvestment in production quality or innovation and may hinder long-term competitiveness and capacity expansion.

Guoquan Food (Shanghai) Company., Ltd. Class H Business Overview & Revenue Model

Company Description

Guoquan Food (Shanghai) Co., Ltd. engages in the provision of home meal solution products under the Guoquan Shihui brand. It offers ready-to-eat, ready-to-heat, ready-to-cook and prepared ingredients, with a focus on at-home hotpot and barbecue products. The company's products portfolio comprises eight categories including hotpot products, barbecue products, beverages, solo-dining meals, ready-to-cook meal kits, fresh produce, western cuisines and snacks. It offers shrimp noodles, fresh vegetable, bamboo shoots, lobster balls, fennel fritters, hot pot, pee beef balls, duck intestines, chicken roll, pot ring white melaleuca, snowflake cow fat and other related packed food products. Guoquan Food (Shanghai) was founded by Ming Chao Yang and Xian Jin Meng on July 11, 2019 and is headquartered in Shanghai, China.

How the Company Makes Money

Guoquan Food generates revenue through multiple streams, including the direct sale of its food products to retailers and wholesalers across China. The company benefits from economies of scale, allowing it to maintain competitive pricing while still achieving healthy profit margins. Key revenue streams include the sale of processed meats, which are a staple in the company's product lineup, as well as popular snack items and ready-to-eat meals that cater to busy consumers. Additionally, strategic partnerships with major grocery chains and e-commerce platforms enhance distribution efficiency and visibility in the market. The company's focus on product innovation and consumer trends, such as healthier and more convenient food options, also plays a significant role in driving sales and maintaining a loyal customer base.

Guoquan Food (Shanghai) Company., Ltd. Class H Financial Statement Overview

Summary

Guoquan Food shows a balanced financial performance with strengths in revenue growth and a strong equity position. However, it faces challenges in cash flow generation, with operating cash flow at zero for 2024, indicating a need for improved cash management.

Income Statement

The company's income statement shows a stable performance with a gross profit margin of 21.9% and a net profit margin of 3.6% for 2024. Revenue growth is modest at 6.2% from 2023 to 2024. EBIT and EBITDA margins stand at 4.4% and 6.3% respectively, indicating efficient operations. However, the net profit margin declined slightly from 3.9% in 2023, showing a minor weakness in net income generation.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 66.2% in 2024. The debt-to-equity ratio is low at 0.03, indicating minimal leverage and solid financial stability. Return on equity is at 7.3%, showing decent profitability. Overall, the company maintains a robust financial position with low risk from debt.

Cash Flow

The cash flow statement highlights challenges in cash generation with operating cash flow at zero for 2024, a decrease from positive flows in previous years. The absence of reported free cash flow and capital expenditures suggests potential issues in cash management. This indicates a need for improved cash flow management to support operations and growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.04B	6.47B	6.09B	7.17B	3.96B	2.96B
Gross Profit	1.53B	1.42B	1.35B	1.25B	355.28M	329.26M
EBITDA	522.83M	407.36M	449.65M	274.81M	-611.28M	-38.43M
Net Income	327.91M	230.56M	239.64M	229.91M	-461.99M	-43.29M
Balance Sheet
Total Assets	4.60B	4.75B	4.65B	4.08B	2.72B	1.18B
Cash, Cash Equivalents and Short-Term Investments	1.62B	1.93B	1.63B	745.02M	865.42M	140.69M
Total Debt	120.68M	102.71M	110.28M	134.78M	40.81M	119.19M
Total Liabilities	1.45B	1.49B	1.27B	1.39B	605.02M	504.89M
Stockholders Equity	3.03B	3.14B	3.26B	2.59B	2.09B	670.38M
Cash Flow
Free Cash Flow	212.81M	406.97M	543.34M	167.31M	-673.27M	-569.96M
Operating Cash Flow	331.84M	530.91M	678.35M	285.28M	-598.03M	-541.50M
Investing Cash Flow	-2.56M	-119.76M	-548.24M	-40.40M	-864.44M	-32.04M
Financing Cash Flow	-373.69M	-264.79M	355.43M	32.53M	1.78B	576.84M

Guoquan Food (Shanghai) Company., Ltd. Class H Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.53
• 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:2517, the sentiment is Positive. The current price of 3.53 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 3.78, and above the 200-day MA of 3.40, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 56.78 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2517.

Guoquan Food (Shanghai) Company., Ltd. Class H Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1475	67 Neutral	HK$7.62B	36.66	5.55%	1.41%	7.29%	-33.19%
2517	66 Neutral	HK$11.44B	32.98	10.58%	4.45%	―	―
1579	66 Neutral	HK$15.00B	18.74	16.58%	5.89%	1.10%	-7.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
9676	62 Neutral	HK$17.73B	47.94	5.56%	2.52%	―	―
0345	58 Neutral	HK$7.40B	31.92	7.63%	2.21%	-3.39%	91.63%
1610	58 Neutral	HK$7.65B	11.67	6.29%	―	100.45%	2.89%

Guoquan Food (Shanghai) Company., Ltd. Class H Corporate Events

Guoquan Food Enters 2026 Connected Procurement Deal for Alcoholic Beverages

Guoquan Food (Shanghai) Co., Ltd. has approved a Procurement Framework Agreement with Songhe Group, an indirect subsidiary of its controlling shareholder Guoquan Industry, under which the group will purchase alcoholic beverages from Songhe Group for daily operations and distribution to customers in 2026. The deal is classified as a continuing connected transaction under Hong Kong Listing Rules, triggering reporting, announcement and annual review requirements but exempting it from circular and independent shareholders’ approval, with pricing to be set on normal commercial terms no less favorable than those offered by independent third parties and with Songhe Group obliged to accept product returns at original purchase prices and bear related costs if Guoquan faces unsold inventory.

The most recent analyst rating on (HK:2517) stock is a Hold with a HK$5.00 price target. To see the full list of analyst forecasts on Guoquan Food (Shanghai) Company., Ltd. Class H stock, see the HK:2517 Stock Forecast page.

Guoquan Food Sees Sharp Profit Surge on Aggressive Store Expansion in 2025

Guoquan Food has issued a positive profit alert indicating that its 2025 revenue is expected to rise about 19.8%–21.3% year-on-year to roughly RMB7.75–7.85 billion, while net profit is projected to jump around 83.7%–92.0% to approximately RMB443–463 million, and core operating profit to increase about 44.8%–51.2% to RMB450–470 million. Management attributes the strong performance to aggressive expansion in township-level markets and steady growth in other regions, with the store network reaching 11,566 outlets by year-end—1,416 more than a year earlier—driving scale gains, higher revenue per store, and improved margins through operating efficiency and an integrated online-offline community central kitchen strategy, though the figures remain preliminary and unaudited and may be adjusted when final 2025 results are released by March 2026.

The most recent analyst rating on (HK:2517) stock is a Buy with a HK$5.00 price target. To see the full list of analyst forecasts on Guoquan Food (Shanghai) Company., Ltd. Class H stock, see the HK:2517 Stock Forecast page.

Guoquan Food Donates HK$10 Million for Hong Kong Fire Relief

Guoquan Food (Shanghai) Co., Ltd., a company incorporated in the People’s Republic of China, has announced a voluntary donation of HK$10 million to support fire rescue and relief efforts following a severe fire in the Tai Po District of Hong Kong. This initiative underscores the company’s commitment to social responsibility, as it extends condolences to the victims and pledges ongoing support to aid the affected community.

The most recent analyst rating on (HK:2517) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Guoquan Food (Shanghai) Company., Ltd. Class H stock, see the HK:2517 Stock Forecast page.