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

• Market Cap: HK$9.42B
• Dividend Yield: 4.45%
• Average Volume (3M): 16.38M
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.53
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 2,119
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.07
• 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$4.91
• Price Target Upside: 36.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$4.50 ▲(25.00% 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

Strong Equity Position

A strong equity position with a high equity ratio indicates financial stability and low risk from debt, supporting long-term growth.

Revenue Diversification

Diversified revenue streams reduce dependency on a single product line, enhancing resilience against market fluctuations.

Strategic Partnerships

Strategic partnerships improve market reach and distribution efficiency, supporting sustained revenue growth.

Negative Factors

Cash Flow Challenges

Zero operating cash flow highlights cash management issues, potentially impacting the company's ability to fund operations and growth.

Declining Net Profit Margin

A declining net profit margin indicates pressure on profitability, which could affect long-term earnings potential.

Cash Generation Issues

Lack of free cash flow and capex reporting suggests cash management issues, potentially limiting investment in growth opportunities.

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: 3.60
• 50DMA: Negative
• 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:2517, the sentiment is Positive. The current price of 3.6 is above the 20-day moving average (MA) of 3.50, below the 50-day MA of 3.72, and above the 200-day MA of 3.12, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 49.47 is Neutral, neither overbought nor oversold. The STOCH value of 78.29 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$7.03B	33.85	5.55%	1.41%	7.29%	-33.19%
2517	66 Neutral	HK$9.42B	27.16	10.58%	4.45%	―	―
1579	66 Neutral	HK$12.00B	15.00	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$13.37B	36.15	5.56%	2.52%	―	―
0345	58 Neutral	HK$6.70B	28.91	7.63%	2.21%	-3.39%	91.63%
1610	58 Neutral	HK$7.15B	10.97	6.29%	―	100.45%	2.89%

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

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.

Guoquan Food Reports Strong Q3 2025 Growth and Expansion

Guoquan Food (Shanghai) Co., Ltd. announced significant business developments for the third quarter of 2025, reporting a net increase of 361 instant retail stores, marking a 98% growth compared to the previous year. The company’s revenue for the quarter increased by 13.6% to 25.8% year-on-year, while core operating profit rose by 44.4% to 66.7%, reflecting improved operational efficiency and solidifying its market position.

Guoquan Food Announces HK$100 Million H Share Repurchase Plan

Guoquan Food (Shanghai) Co., Ltd. has announced a voluntary plan to repurchase H Shares worth up to HK$100 million on the open market. This decision is part of a broader strategy to leverage the Share Repurchase Mandate granted at the 2024 annual general meeting, reflecting the company’s confidence in its business prospects and aiming to enhance shareholder value. The board believes the current share price undervalues the company’s intrinsic worth and growth potential. The repurchase plan will be conducted in compliance with relevant laws and regulations, with the board retaining discretion over the timing and extent of the repurchases.