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

• Market Cap: €630.04M
• Dividend Yield: N/A
• Average Volume (3M): 28.83K
• Price to Earnings (P/E): 76.5
• Beta (1Y): 0.02
• Revenue Growth: 1.59%
• EPS Growth: -56.45%
• Country: HK
• Employees: 8,324
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.02
• Shares Outstanding: 1,016,188,960
• 10 Day Avg. Volume: 25,300
• 30 Day Avg. Volume: 28,833
• PEG Ratio: 0.40
• Price to Book (P/B): 0.27
• Price to Sales (P/S): 0.10
• P/FCF Ratio: -9.40
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: HK$0.50 ▼(-16.67% Downside)

The overall stock score reflects challenges in financial performance, particularly in cash flow and profitability, combined with a weak valuation due to a negative P/E ratio. Technical analysis indicates neutral momentum, contributing to a cautious outlook.

Positive Factors

Cost Management

Effective cost management helps maintain profitability despite revenue challenges, ensuring long-term operational efficiency and margin stability.

Equity Position

A strong equity position provides financial stability and flexibility, supporting future growth initiatives and resilience against market fluctuations.

Gross Profit Margin

Improved gross profit margin indicates effective cost control and pricing strategies, contributing to sustainable profitability in the long term.

Negative Factors

Revenue Growth Challenges

Inconsistent revenue growth can hinder long-term expansion and market competitiveness, necessitating strategic adjustments to capture market opportunities.

Cash Flow Generation

Fluctuating and negative cash flow generation raises concerns about liquidity management, potentially impacting the company's ability to fund operations and growth.

Profitability on Equity

Low return on equity suggests limited profitability from shareholder investments, which may affect investor confidence and capital raising capabilities.

Dachan Food (Asia) Limited Business Overview & Revenue Model

Company Description

DaChan Food (Asia) Limited, together with its subsidiaries, engages in the manufacture and sale of in livestock feeds, poultry and chilled meats, and processed foods. It operates in three segments: Processed Food, Livestock Feeds, and Chicken Meat. The Processed Food segment produces and distributes pickled, pre-fried, and instant foods. The Livestock Feeds segment manufactures and distributes feed, base mixes, and pre-mixes for swine, layer, broiler, duck, and breeder poultry under the Dr. Nupak, DaChan, and Green Knight brands. The Chicken Meat segment is involved in broiler farming, broiler breeder eggs hatching, and contract farming activities; and processing and marketing chilled and frozen chicken meat under the DaChan and Sisters' Kitchen brands. The company is also involved in the husbandry, poultry farms construction and leasing, and swine raising and selling activities; and manufacturing and trading feed meal and related additives, aquatic products, and veterinary and aquatic medicines. It distributes its products through chain stores, farmers' markets, online stores, distributors, and supermarkets in the People's Republic of China, Vietnam, Malaysia, Japan, and rest of the Asia Pacific. The company was incorporated in 2007 and is headquartered in Beijing, China. DaChan Food (Asia) Limited is a subsidiary of Great Wall International (Holdings) Ltd.

How the Company Makes Money

Dachan Food generates revenue through multiple key streams, primarily from the sale of its processed meat products and packaged foods. The company capitalizes on its established distribution networks to reach a broad customer base, including supermarkets, convenience stores, and foodservice providers. Additionally, strategic partnerships with local distributors enhance its market reach and operational efficiency. The company also benefits from economies of scale in production, allowing for competitive pricing while maintaining margins. Seasonal promotions and product diversification further contribute to its earnings, ensuring a steady flow of revenue throughout the year.

Dachan Food (Asia) Limited Financial Statement Overview

Summary

Dachan Food shows solid cost management and a strong equity position, but faces challenges in revenue growth and cash flow generation. The balance sheet is stable, yet profitability and cash flow consistency need improvement.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.95B	5.83B	6.42B	6.20B	6.53B	6.15B
Gross Profit	676.44M	733.41M	662.69M	680.91M	661.78M	714.08M
EBITDA	189.84M	244.62M	242.24M	295.69M	311.11M	370.88M
Net Income	-7.81M	58.83M	47.02M	91.85M	155.47M	202.89M
Balance Sheet
Total Assets	3.69B	3.88B	3.78B	3.57B	3.44B	4.33B
Cash, Cash Equivalents and Short-Term Investments	473.51M	547.71M	621.26M	532.27M	625.06M	631.37M
Total Debt	537.66M	597.88M	561.10M	408.96M	441.46M	944.18M
Total Liabilities	1.29B	1.45B	1.40B	1.25B	1.17B	2.06B
Stockholders Equity	2.14B	2.17B	2.12B	2.07B	2.00B	1.84B
Cash Flow
Free Cash Flow	0.00	-62.98M	-139.03M	-34.05M	30.06M	377.35M
Operating Cash Flow	0.00	306.15M	407.25M	341.16M	236.52M	530.13M
Investing Cash Flow	0.00	-342.26M	-531.45M	-347.73M	-144.70M	-108.27M
Financing Cash Flow	0.00	-21.29M	118.60M	-87.72M	-100.90M	-141.68M

Dachan Food (Asia) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:3999, the sentiment is Negative. The current price of 0.6 is below the 20-day moving average (MA) of 0.61, below the 50-day MA of 0.62, and below the 200-day MA of 0.63, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.24 is Neutral, neither overbought nor oversold. The STOCH value of 88.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
2317	72 Outperform	HK$974.55M	8.16	5.08%	10.28%	-1.19%	-9.05%
1767	71 Outperform	HK$285.00M	10.80	5.48%	0.74%	5.43%	-25.42%
1837	68 Neutral	HK$2.41B	10.83	13.72%	3.64%	11.89%	27.80%
1583	63 Neutral	HK$1.00B	95.68	0.79%	0.00%	-1.70%	104.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3999	54 Neutral	€630.04M	76.54	0.34%	―	1.59%	-56.45%
1262	38 Underperform	HK$360.39M	―	-23.87%	―	4.72%	79.88%

Dachan Food (Asia) Limited Corporate Events

DaChan Food Updates Nomination Committee Terms

DaChan Food (Asia) Limited has revised the terms of reference for its Nomination Committee, effective from October 31, 2025. The committee, which is a part of the company’s board of directors, is tasked with overseeing the nomination process for board members. The revised terms stipulate that the committee must consist of at least three members, with a majority being independent non-executive directors, and at least one member should be of a different gender. This move aims to enhance the governance structure and ensure diversity within the company’s leadership.

DaChan Food Reports Increased Turnover but Declining Profits for 2025

DaChan Food (Asia) Limited reported its unaudited consolidated results for the nine months ending September 30, 2025, showing a 4.1% increase in turnover to RMB 4.495 billion compared to the previous year. However, the company experienced a significant decline in profitability, with a loss attributable to shareholders of RMB 14.684 million, down from a profit of RMB 36.910 million in 2024, reflecting a challenging period for the company and potential concerns for stakeholders.

DaChan Food (Asia) Limited Schedules Board Meeting for Q3 Results

DaChan Food (Asia) Limited has announced that its board of directors will hold a meeting on October 31, 2025, to review and potentially approve the company’s third-quarter results for the period ending September 30, 2025. This meeting is significant as it will determine the publication of these financial results on the Hong Kong Stock Exchange and the company’s website, which could impact investor perceptions and the company’s market positioning.