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

• Market Cap: €660.52M
• Dividend Yield: N/A
• Average Volume (3M): 31.07K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 0.10
• Revenue Growth: -2.20%
• EPS Growth: -120.05%
• 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: 8,600
• 30 Day Avg. Volume: 31,066
• 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: €0.45
• Price Target Upside: -29.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: HK$0.50 ▼(-21.88% Downside)

Dachan Food's overall score reflects strong technical trends and a stable financial structure, but is weighed down by valuation concerns and inconsistent cash flow generation. The lack of earnings call data and corporate events limits additional insights.

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 (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 shows solid cost management and a robust equity position, but faces challenges in revenue growth and cash flow generation. The company's financial stability is supported by a strong balance sheet, though improving profitability and cash flow consistency is crucial.

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: Positive
• Last Price: 0.64
• 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:3999, the sentiment is Positive. The current price of 0.64 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 58.78 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 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$2.23B	10.04	13.72%	3.81%	11.89%	27.80%
2317	77 Outperform	HK$1.05B	8.80	5.08%	9.83%	-1.19%	-9.05%
1767	68 Neutral	HK$285.00M	10.80	5.48%	0.81%	5.43%	-25.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1583	62 Neutral	$989.18M	94.24	0.79%	0.00%	-1.70%	104.41%
3999	58 Neutral	€660.52M	29.86	-0.32%	―	-2.20%	-120.05%
1262	40 Underperform	HK$414.99M	―	-23.87%	―	4.72%	79.88%

Dachan Food (Asia) Limited Corporate Events

DaChan Food Reports Increased Turnover but Faces Profit Decline in H1 2025

DaChan Food (Asia) Limited reported a 4.1% increase in turnover for the first half of 2025 compared to the same period in 2024. However, the company experienced a significant decline in gross profit by 15.7% and reported a loss attributable to shareholders of RMB 35,070,000, contrasting with a profit in the previous year. This performance reflects challenges in maintaining profit margins and managing costs, impacting its financial stability and potentially affecting stakeholder confidence.

DaChan Food (Asia) Limited Schedules Board Meeting for Interim Results Review

DaChan Food (Asia) Limited has announced that its board of directors will hold a meeting on August 7, 2025, to review and potentially approve the interim financial results for the first half of the year ending June 30, 2025. This meeting is significant as it will determine the publication of these results, which could impact the company’s operations and provide insights into its financial health and market positioning.

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.