Dachan Food (Asia) Limited (3999) AI Stock Analysis

• Market Cap: €619.88M
• Dividend Yield: N/A
• Average Volume (3M): 17.03K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 0.07
• Revenue Growth: -8.33%
• EPS Growth: -69.38%
• Country: HK
• Employees: 8,324
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 0.02
• Shares Outstanding: 1,016,188,960
• 10 Day Avg. Volume: 7,700
• 30 Day Avg. Volume: 17,033
• PEG Ratio: 0.04
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 55 Neutral
• Price Target: HK$0.50 ▼(-23.08%Downside)

Dachan Food's financial performance is supported by a solid balance sheet and effective cost management, but it is hindered by inconsistent revenue growth and cash flow challenges. Technical analysis suggests short-term positive momentum, though potential overbought conditions could limit gains. Valuation concerns, with a high P/E ratio and no dividend yield, further weigh on the stock's attractiveness.

Dachan Food (Asia) Limited Business Overview & Revenue Model

Company Description

Dachan Food (Asia) Limited (3999) is a leading food processing company in Asia, specializing in the production and distribution of a wide array of food products. The company operates primarily in the poultry, livestock, and feed sectors, providing high-quality processed meat products, animal feed, and ready-to-eat meals. Dachan Food (Asia) Limited leverages its extensive supply chain and production capabilities to serve both domestic and international markets, ensuring a consistent supply of safe and nutritious food products.

How the Company Makes Money

Dachan Food (Asia) Limited generates revenue through several key streams, primarily involving the sale of processed poultry and livestock products, animal feed, and ready-to-eat food items. The company capitalizes on its integrated production model, which covers breeding, processing, and distribution, allowing for cost efficiencies and quality control. A significant portion of its earnings is derived from the sale of processed meat products to retail and foodservice channels. Additionally, partnerships with local and international distributors expand its market reach, contributing to its revenue. The company also benefits from economies of scale and strategic investments in technology and infrastructure to enhance production capability and distribution efficiency.

Dachan Food (Asia) Limited Financial Statement Overview

Summary

Dachan Food exhibits strong cost management and a robust equity position with a manageable debt-to-equity ratio. However, it faces challenges in revenue growth, inconsistent cash flow generation, and a lower EBIT margin, which impact its financial strength.

Income Statement

Dachan Food's income statement indicates stable profitability with a gross profit margin improving to 12.57% and a net profit margin of 1.01% in the latest year. Despite a 9.11% decline in revenue, the company improved its gross profit, indicating cost management effectiveness. However, a lower EBIT margin of 2.00% suggests operational challenges. Revenue growth has been inconsistent, with declines in recent years, impacting overall revenue momentum.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 55.96% and a manageable debt-to-equity ratio of 0.28. Return on equity stands at 2.71%, indicating modest returns on shareholder investment. The company's financial structure is stable, with a healthy asset base and controlled leverage, although profitability on equity could be improved.

Cash Flow

Cash flow from operations was not reported for the latest period, which limits insight into cash generation. Historically, free cash flow has fluctuated, with the most recent annual data showing a negative free cash flow of -139,027,000. The absence of current operating cash flow data and free cash flow generation concerns could indicate potential liquidity management challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.83B	6.42B	6.20B	6.53B	9.28B
Gross Profit	733.41M	662.69M	680.91M	661.78M	1.03B
EBITDA	244.62M	242.24M	295.69M	311.11M	370.88M
Net Income	58.83M	47.02M	122.48M	155.47M	303.83M
Balance Sheet
Total Assets	3.88B	3.78B	3.57B	3.44B	4.33B
Cash, Cash Equivalents and Short-Term Investments	472.21M	621.26M	532.27M	625.06M	631.37M
Total Debt	597.88M	561.10M	408.96M	441.46M	944.18M
Total Liabilities	1.45B	1.40B	1.25B	1.17B	2.06B
Stockholders Equity	2.17B	2.12B	2.07B	2.00B	1.84B
Cash Flow
Free Cash Flow	-62.98M	-139.03M	-34.05M	30.06M	377.35M
Operating Cash Flow	306.15M	407.25M	341.16M	236.52M	530.13M
Investing Cash Flow	-342.26M	-531.45M	-347.73M	-144.70M	-108.27M
Financing Cash Flow	-21.29M	118.60M	-87.72M	-100.90M	-141.68M

Dachan Food (Asia) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.65
• 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:3999, the sentiment is Positive. The current price of 0.65 is above the 20-day moving average (MA) of 0.62, above the 50-day MA of 0.63, and above the 200-day MA of 0.63, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:3999.

Dachan Food (Asia) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1837	79 Outperform	HK$1.69B	8.20	12.91%	5.19%	9.63%	20.08%
2317	77 Outperform	HK$928.87M	7.42	5.39%	14.59%	-1.88%	129.25%
1767	71 Outperform	HK$340.00M	9.21	8.18%	0.68%	>-0.01%	16.04%
1583	66 Neutral	$1.13B	49.17	1.74%	1.45%	-0.82%	―
Sector *	65 Neutral	$26.91B	15.45	-4.18%	3.18%	1.01%	1.53%
3999	55 Neutral	€619.88M	30.81	0.92%	―	-8.33%	-69.38%
1262	47 Neutral	HK$417.17M	―	-42.82%	―	10.98%	29.31%

Dachan Food (Asia) Limited Corporate Events

Dachan Food (Asia) Limited Passes All AGM Resolutions

Dachan Food (Asia) Limited announced that all proposed resolutions at their Annual General Meeting held on June 27, 2025, were unanimously passed. The resolutions included the adoption of the company’s audited financial statements for 2024, reappointment of KPMG as auditors, re-election of several directors until 2028, and authorization for the board to fix directors’ remuneration. Additionally, a general mandate was granted to the directors to manage the company’s shares, including issuing new shares and dealing with treasury shares, not exceeding 20% of the issued shares.

DaChan Food (Asia) Limited Reports Q1 2025 Financial Results

DaChan Food (Asia) Limited reported a slight decrease in turnover for the first quarter of 2025 compared to the previous year, with a significant drop in gross profit and a shift from profit to loss attributable to shareholders. The company’s performance reflects challenges in managing costs and maintaining profitability, impacting its financial standing and potentially affecting stakeholder confidence.

Dachan Food (Asia) Limited Announces 2025 AGM and Share Issuance Mandate

Dachan Food (Asia) Limited has announced its annual general meeting scheduled for June 27, 2025, which will be held both physically in Hong Kong and virtually online. The meeting will cover the adoption of the company’s audited financial statements for 2024, the reappointment of KPMG as auditors, the re-election of several directors, and the authorization of the board to fix directors’ remuneration. Additionally, a special resolution will be considered to grant the directors a mandate to issue new shares or convertible securities, enhancing the company’s flexibility in capital management.