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

• Market Cap: HK$9.58B
• Dividend Yield: 4.46%
• Average Volume (3M): 16.38M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.42
• 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$4.51
• Price Target Upside: 23.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: HK$3.50 ▼(-3.85% Downside)

Guoquan Food's overall stock score reflects a stable financial performance with strong equity and modest revenue growth. However, challenges in cash flow management and a high P/E ratio limit its attractiveness. Positive technical indicators provide some support, but the lack of earnings call data and corporate events leaves uncertainties.

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

Company Description

Guoquan Food (Shanghai) Company, Ltd. Class H (2517) is a dynamic enterprise engaged in the food industry with a focus on providing high-quality and convenient food products. The company specializes in the production and distribution of pre-packaged meals and ready-to-eat food items, catering to the demands of modern consumers who seek quick and nutritious meal solutions. Operating primarily in the Chinese market, Guoquan Food has established a strong brand presence and leverages its extensive distribution network to reach a wide customer base.

How the Company Makes Money

Guoquan Food (Shanghai) Company generates revenue through the sale of its diverse range of food products. The company's key revenue streams include direct sales to consumers via retail outlets and online platforms, as well as partnerships with supermarkets and convenience stores that stock its products. Guoquan Food benefits from its ability to innovate and introduce new products that meet consumer preferences, enhancing its competitive edge. Additionally, the company may engage in strategic collaborations or partnerships with other food brands or supply chain entities to expand its market reach and optimize its operational efficiency, further contributing to its earnings.

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, challenges in cash flow generation, as indicated by zero operating cash flow, highlight 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: 3.64
• 50DMA: Positive
• 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 3.64 is above the 20-day moving average (MA) of 3.37, above the 50-day MA of 3.35, and above the 200-day MA of 2.70, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.25 is Neutral, neither overbought nor oversold. The STOCH value of 76.50 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
1579	65 Neutral	HK$11.81B	14.76	16.58%	6.02%	1.10%	-7.88%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2517	60 Neutral	HK$9.58B	27.62	10.58%	4.46%	―	―
1475	58 Neutral	HK$7.19B	38.15	5.18%	1.56%	7.44%	-42.52%
1610	58 Neutral	HK$7.65B	11.74	6.29%	―	100.45%	2.89%
9676	58 Neutral	HK$14.61B	39.50	5.56%	2.37%	―	―
0345	57 Neutral	HK$8.29B	35.66	7.71%	1.81%	0.91%	101.66%

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

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.

The most recent analyst rating on (HK:2517) stock is a Hold with a HK$3.50 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.

Guoquan Food Announces Interim Dividend Approval at 2025 EGM

Guoquan Food (Shanghai) Co., Ltd. announced the results of its 2025 first extraordinary general meeting (EGM), where shareholders approved a profit distribution plan for the first half of 2025. The interim cash dividend of RMB0.0716 per share will be paid on October 17, 2025, to shareholders on record as of September 2, 2025. This decision reflects the company’s commitment to returning value to its shareholders and may positively influence its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:2517) stock is a Buy with a HK$4.80 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 Announces Interim Dividend for 2025

Guoquan Food (Shanghai) Co., Ltd. has announced an interim cash dividend for the six months ended June 30, 2025. The dividend is set at RMB 0.0716 per share, with payment to be made in Hong Kong dollars at HKD 0.0785 per share. The announcement includes updates on the default currency, exchange rate, and withholding tax information. The ex-dividend date is August 26, 2025, with payment scheduled for October 17, 2025. The company has outlined the withholding tax rates applicable to different categories of non-resident shareholders, which vary based on tax treaties between their countries and the PRC.

The most recent analyst rating on (HK:2517) stock is a Buy with a HK$4.80 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 Announces 2025 Extraordinary General Meeting

Guoquan Food (Shanghai) Co., Ltd. has announced the convening of its first extraordinary general meeting for 2025, which will take place on August 22, 2025. The primary agenda for this meeting is to consider and approve the company’s profit distribution plan for the first half of 2025, a move that could impact shareholder returns and company financial strategies.

Guoquan Food Reports Strong Interim Results and Retail Expansion

Guoquan Food (Shanghai) Co., Ltd. reported a significant increase in its financial performance for the first half of 2025, with a 21.6% rise in revenue and a 122.5% surge in net profit compared to the same period in 2024. The company expanded its retail network to 10,400 stores, including a notable increase in township-level markets and the introduction of 24-hour unmanned retail stores, which are expected to enhance operational efficiency and consumer convenience.

Guoquan Food Announces Interim Dividend for 2025

Guoquan Food (Shanghai) Co., Ltd. has announced an interim cash dividend of RMB 0.0716 per share for the six months ended June 30, 2025. The dividend will be paid on October 17, 2025, following shareholder approval on August 22, 2025. The ex-dividend date is set for August 26, 2025, with the record date on September 2, 2025. This announcement may impact the company’s financial performance and shareholder returns.

Guoquan Food Announces Changes in Key Corporate Roles

Guoquan Food (Shanghai) Co., Ltd., a company listed on the Hong Kong Stock Exchange, has announced a change in its joint company secretary, process agent, and authorized representative roles. Mr. Cheung Kai Cheong Wille has resigned from these positions, effective August 4, 2025, and Mr. Lam Kang Chi has been nominated to replace him. Mr. Wang Hui will continue as the other joint company secretary. This change is part of the company’s ongoing compliance with the Stock Exchange’s listing rules, and a waiver has been granted to allow Mr. Wang to continue in his role while gaining the necessary experience.