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

• Market Cap: HK$10.96B
• Dividend Yield: 1.88%
• Average Volume (3M): 54.49M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.48
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: HK
• Employees: 2,119
• Sector: Consumer Defensive
• Sector Strength: 66
• Industry: Packaged Foods
• EPS (TTM): 0.09
• Shares Outstanding: 2,747,360,400
• 10 Day Avg. Volume: 30,407,906
• 30 Day Avg. Volume: 54,494,738
• PEG Ratio: 2.16
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.90
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

Guoquan Food's stock score reflects its strong financial stability and positive technical momentum. The low debt levels and strong equity position are significant strengths, while challenges in cash flow management present potential risks. The technical analysis is favorable, showing bullish momentum. However, the high P/E ratio indicates that the stock might be overvalued, which could be a concern for value investors.

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 (Shanghai) Company, Ltd. generates revenue primarily through the sale of its food products to both domestic and international markets. The company's revenue streams are mainly derived from wholesale and retail distribution channels, including partnerships with supermarkets, grocery stores, and online platforms. Additionally, the company may engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings. Factors such as consumer demand, product innovation, and effective supply chain management significantly contribute to the company's earnings.

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

Summary

Guoquan Food shows strong financial stability with a robust equity position and low debt levels, supporting its overall stability. However, the company faces challenges with cash flow management, as indicated by zero operating cash flow, which could impact its ability to support operations and growth. Revenue growth is modest, and there is a slight decline in net profit margin.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
6.47B	6.09B	7.17B	3.96B	2.96B
	Gross Profit
1.42B	1.35B	1.25B	355.28M	329.26M
	EBIT
348.65M	264.06M	277.48M	-602.31M	-43.43M
	EBITDA
407.36M	449.65M	336.81M	-567.75M	-29.60M
	Net Income Common Stockholders
230.56M	239.64M	229.91M	-461.99M	-43.29M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.93B	1.66B	745.02M	827.91M	100.82M
	Total Assets
4.75B	4.65B	4.08B	2.72B	1.18B
	Total Debt
102.71M	110.28M	134.78M	40.81M	119.19M
	Net Debt
-1.83B	-1.31B	-560.17M	-586.77M	18.37M
	Total Liabilities
1.49B	1.27B	1.39B	605.02M	504.89M
	Stockholders Equity
3.14B	3.26B	2.59B	2.09B	670.38M
Cash Flow		Free Cash Flow
0.00	543.34M	167.31M	-673.27M	-569.96M
	Operating Cash Flow
0.00	678.35M	285.28M	-598.03M	-541.50M
	Investing Cash Flow
0.00	-548.24M	-40.40M	-864.44M	-32.04M
	Financing Cash Flow
0.00	355.43M	32.53M	1.78B	576.84M

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

• Technical Analysis Sentiment: Positive
• Last Price: 3.04
• 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 3.04 is below the 20-day moving average (MA) of 3.22, above the 50-day MA of 2.79, and above the 200-day MA of 2.38, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 27.05 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
2517	69 Neutral	HK$10.96B	33.37		1.88%	―	―
Sector *	65 Neutral	$8.82B	14.91	4.71%	6.22%	3.60%	-2.66%
CIADF		$8.72B	608.11	0.21%	3.05%	―	―
ZIJMF		$70.06B	13.75	27.63%	1.51%	―	―
1475	71 Outperform	HK$7.25B	37.57	5.15%	2.31%	3.95%	-42.81%
1516	53 Neutral	HK$5.29B	―	-8.05%	9.02%	-2.43%	-7.97%

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

Guoquan Food Secures Approval for H Share Full Circulation

Guoquan Food (Shanghai) Co., Ltd. has received approval from the Stock Exchange of Hong Kong for the full circulation of its H shares, marking a significant step in its market operations. The approval allows for the conversion and listing of 937,948,348 domestic unlisted shares into H shares, which will constitute approximately 34.14% of the company’s total shares post-conversion. This move is expected to enhance the company’s shareholding structure and improve trading liquidity.

Guoquan Food Advances H Share Full Circulation with CSRC Approval

Guoquan Food (Shanghai) Co., Ltd. has announced the receipt of a filing notice from the China Securities Regulatory Commission (CSRC) for the implementation of H Share Full Circulation. This involves converting 937,948,348 Domestic Unlisted Shares into H Shares, which will be listed on the Main Board of the Stock Exchange. Guoquan Industry, a major shareholder, has committed to a six-month lock-up period for these shares, reflecting confidence in the company’s long-term prospects. This strategic move is expected to enhance the company’s market positioning and attract potential investors, though it remains subject to regulatory procedures.

Guoquan Food Announces Resignation of Non-Executive Director

Guoquan Food (Shanghai) Co., Ltd., a company listed on the Hong Kong Stock Exchange, announced the resignation of Mr. Yi Jiayu from his position as a non-executive director due to work arrangements. The company expressed gratitude for Mr. Yi’s contributions and confirmed there were no disagreements or unresolved matters related to his departure.

Guoquan Food Announces Board Composition and Committee Roles

Guoquan Food (Shanghai) Co., Ltd. has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The announcement also details the membership of the board’s three committees, which are the Audit, Remuneration, and Nomination Committees, highlighting the roles and responsibilities of each director within these committees.

Guoquan Food Reports 2024 Financial Results with Revenue Growth and Store Expansion

Guoquan Food (Shanghai) Co., Ltd. announced its annual results for the year ended December 31, 2024, reporting a revenue increase of 6.2% to RMB6,469.8 million. Despite a decrease in net profit by 8.4% to RMB241.2 million, the company saw a rise in core operating profit by 3.1%. The company expanded its store network to 10,150 stores, focusing on innovative and township-level markets, which contributed to enhancing brand awareness and improving logistics efficiency. The company’s strategic initiatives in optimizing product portfolios and embracing online leads have positioned it well to adapt to changing consumer trends.

Guoquan Food Announces Final Cash Dividend for 2024

Guoquan Food (Shanghai) Co., Ltd. has announced a final ordinary cash dividend of RMB 0.0746 per share for the financial year ending December 31, 2024. The dividend is subject to shareholder approval on June 27, 2025, with the payment scheduled for August 29, 2025. This announcement reflects the company’s commitment to returning value to its shareholders and may impact its financial positioning and investor relations.

Guoquan Food Schedules Board Meeting to Approve Annual Results

Guoquan Food (Shanghai) Co., Ltd. has announced a board meeting scheduled for March 28, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The meeting will also consider the potential payment of a final dividend, which could impact the company’s financial strategy and shareholder returns.