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China Feihe Limited (HK:6186)
:6186
Hong Kong Market

China Feihe Limited (6186) AI Stock Analysis

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HK:6186

China Feihe Limited

(6186)

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Neutral 55 (OpenAI - 5.2)
Rating:55Neutral
Price Target:
HK$4.00
â–¼(-0.74% Downside)
The overall score of 55 reflects strong financial health, tempered by significant technical weaknesses and modest valuation. The stock's technical analysis indicates bearish momentum, with the price below major moving averages and an oversold RSI. Despite a solid equity base and positive cash flow, declining net profit margins and inconsistent revenue growth raise concerns about future performance.
Positive Factors
High Gross Margins
Sustained gross margins above 60% indicate persistent production efficiency and premium pricing power in infant formula. High gross profit provides durable cash flow to fund quality control, R&D, distribution and marketing, creating a structural buffer against input cost inflation.
Strong Equity Base / Low Leverage
An equity ratio above 70% with low leverage delivers balance-sheet resilience and financial flexibility. This reduces refinancing risk, supports capex and supply-chain investments, and permits strategic spending on brand and quality without reliance on volatile external financing over the medium term.
Positive Cash Generation
Stable operating cash flow and positive free cash flow underpin self-funded operations and reinvestment capacity. Reliable cash generation supports factory upgrades, working capital and dividend capacity, enabling sustainable growth initiatives without overreliance on debt or equity issuance.
Negative Factors
Declining Net Profit Margins
A drop from 32.2% to 17.2% over four years reflects structural pressure on bottom-line profitability. Such margin erosion reduces retained earnings and investment capacity, signals weakening pricing power or rising operating costs, and impairs long-term ability to generate shareholder returns.
Inconsistent / Declining Revenue
Inconsistent top-line growth and recent revenue declines undermine scale economies and strategic planning. Persistent volatility complicates capacity utilization, marketing ROI and margin recovery, and given demographic and competitive headwinds in China, revenue instability can hinder durable growth execution.
Falling Return on Equity
ROE plunging from 41.9% to 13.8% indicates materially lower efficiency in deploying shareholder capital despite a strong equity base. This deterioration limits organic funding for expansion and dividends, and suggests operational or margin issues that reduce long-term investor returns.

China Feihe Limited (6186) vs. iShares MSCI Hong Kong ETF (EWH)

China Feihe Limited Business Overview & Revenue Model

Company DescriptionChina Feihe Limited, an investment holding company, produces and sells infant milk formula products in Mainland China and the United States. The company offers a range of raw milk, adult milk powders, liquid milk products and health care products, as well as soybean powder and goat milk powder. It is also involved in the retail of vitamins, minerals, herbs, and other nutritional supplements. The company sells its products through distributors; and e-commerce platforms, such as Tmall, JD.com, and Suning.com, as well as through its website and mobile application, including WeChat. As of December 31, 2021, it operated a distribution network of approximately 2,000 offline customers with 110,000 retail points of sale. China Feihe Limited was founded in 1962 and is headquartered in Beijing, the People's Republic of China.
How the Company Makes MoneyChina Feihe Limited generates revenue primarily through the sale of its infant formula products, which are marketed under several well-known brands. The company operates a multi-channel distribution strategy that includes online platforms, retail outlets, and direct sales to consumers, allowing it to reach a broad audience. Key revenue streams include domestic sales in China, where demand for high-quality infant formula continues to grow, and international sales as the company expands its market presence. Significant partnerships with retailers and e-commerce platforms enhance its distribution capabilities and visibility. Additionally, the company's investment in brand building and marketing efforts contributes to customer loyalty and repeat purchases, further bolstering its earnings.

China Feihe Limited Financial Statement Overview

Summary
China Feihe Limited demonstrates robust financial health with strong gross margins and a stable equity base. However, challenges with declining net profit margins, inconsistent revenue growth, and reduced return on equity indicate areas for improvement. Cash flow generation remains positive, ensuring the company can meet its financial obligations while supporting growth opportunities.
Income Statement
China Feihe Limited shows strong gross profit margins, consistently above 60% over the years, indicating efficient production and cost management. However, net profit margins have declined from 32.2% in 2020 to 17.2% in 2024, suggesting pressure on net income possibly due to increased costs or reduced pricing power. Revenue growth has been inconsistent, with a decline in recent years, impacting overall income performance.
Balance Sheet
The company maintains a solid equity base with an equity ratio consistently over 70%, indicating strong financial stability. The debt-to-equity ratio is low, demonstrating prudent debt management. However, the return on equity has decreased from 41.9% in 2020 to 13.8% in 2024, reflecting challenges in generating returns for shareholders despite a strong equity position.
Cash Flow
Operating cash flow has been stable, supporting the company's operational needs. Free cash flow remains positive, albeit experiencing some decline over the years. The free cash flow to net income ratio indicates efficient cash generation relative to net income, although the free cash flow growth rate has shown a negative trajectory, which may impact future cash reserves.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue19.80B20.75B19.53B21.31B22.78B18.59B
Gross Profit12.55B13.76B12.66B13.95B16.01B13.48B
EBITDA4.50B6.24B5.51B6.25B8.41B7.13B
Net Income2.70B3.57B3.39B4.94B6.87B7.44B
Balance Sheet
Total Assets33.90B35.73B36.19B35.52B31.48B28.32B
Cash, Cash Equivalents and Short-Term Investments16.86B19.00B19.15B19.11B17.18B16.41B
Total Debt845.01M1.08B1.64B1.50B1.11B1.42B
Total Liabilities6.75B8.32B9.86B10.04B9.08B9.14B
Stockholders Equity25.61B25.93B24.94B23.99B20.92B17.75B
Cash Flow
Free Cash Flow1.28B2.68B2.61B3.80B4.80B6.89B
Operating Cash Flow2.69B4.18B4.15B6.28B6.81B7.75B
Investing Cash Flow-1.04B-1.32B386.70M-4.80B-2.44B-3.79B
Financing Cash Flow-3.22B-3.03B-2.71B-1.98B-4.25B-2.54B

China Feihe Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price4.03
Price Trends
50DMA
4.18
Negative
100DMA
4.15
Negative
200DMA
4.75
Negative
Market Momentum
MACD
-0.04
Positive
RSI
37.71
Neutral
STOCH
12.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6186, the sentiment is Negative. The current price of 4.03 is below the 20-day moving average (MA) of 4.09, below the 50-day MA of 4.18, and below the 200-day MA of 4.75, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 37.71 is Neutral, neither overbought nor oversold. The STOCH value of 12.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6186.

China Feihe Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$109.70B8.7115.40%6.66%5.98%62.13%
67
Neutral
HK$55.12B12.1924.70%3.26%2.03%1.43%
67
Neutral
$67.13B15.1032.58%5.46%-1.68%22.06%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
59
Neutral
HK$3.49B11.944.53%2.90%0.52%99.51%
56
Neutral
HK$57.95B-176.95-0.74%3.62%-7.36%-107.25%
55
Neutral
HK$35.87B12.3210.48%6.70%-0.64%-24.62%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6186
China Feihe Limited
3.96
-0.84
-17.50%
HK:0151
Want Want China Holdings
4.67
0.33
7.55%
HK:0288
WH Group
8.55
3.56
71.48%
HK:2319
China Mengniu Dairy Co
14.97
0.29
1.98%
HK:0322
Tingyi (Cayman Islands) Holding
11.91
1.58
15.26%
HK:1717
Ausnutria Dairy Corp. Ltd.
1.96
0.08
4.26%

China Feihe Limited Corporate Events

China Feihe Deploys RMB600 Million of Idle Cash Into CITIC Bank Wealth Product
Dec 28, 2025

China Feihe has further deployed its surplus cash into low-risk treasury investments, with its wholly owned subsidiary Feihe HLJ subscribing on 26 December 2025 to a RMB600 million closed-ended fixed-income wealth management product from CITIC Bank, offering an expected annual return of 2.40%–2.90% and maturing in December 2026. This latest subscription lifts the group’s aggregate outstanding principal in wealth management and structured deposit products from CITIC Bank to RMB2 billion, with the board emphasizing that the funds are idle, the product is non-principal-guaranteed but low risk, and that the move is intended to enhance returns versus standard deposits without impairing working capital, thereby supporting ongoing operations and dividend capacity while maintaining prudent internal controls.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Channels RMB300 Million of Idle Cash Into New SPD Bank Wealth Product
Dec 28, 2025

China Feihe Limited has deployed RMB300 million of idle funds into a new wealth management product from SPD Bank, subscribing on 25 December 2025 to the Shangxin Xinyue Fengli Assembled Fund Trust Scheme EL2001 Phase 191, a non-principal-guaranteed fixed-income product maturing in October 2026 with an expected annual return of 2.6%. This latest move brings the group’s outstanding principal in SPD Bank wealth management and structured deposit products to RMB2.9 billion, as the company pursues higher yields than standard bank deposits while maintaining liquidity for operations and dividends; the board says the terms are fair, risks are low, and internal controls ensure that treasury investments will not constrain working capital or normal business activities.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Invests RMB300 Million in CITIC Bank Wealth Management Product
Dec 19, 2025

China Feihe Limited has disclosed that its wholly owned subsidiary Feihe HLJ has subscribed to a RMB300 million closed-ended wealth management product offered by CITIC Bank, using idle funds to earn an expected annual return of 2.40%–2.90% over a one-year term ending in December 2026. The company now has an aggregate outstanding principal of RMB2.5 billion in wealth management and structured deposit products from CITIC Bank and emphasizes that this treasury move is designed to enhance capital gains while maintaining low risk, capital safety and liquidity, without impacting working capital or daily operations, which the board considers fair, reasonable and in the interests of shareholders.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Limited Invests in CITIC Bank Financial Product to Boost Capital Gains
Dec 16, 2025

China Feihe Limited has announced that its wholly-owned subsidiary, Feihe HLJ Sales, has subscribed to a wealth management financial product offered by CITIC Bank, using RMB700 million of its idle funds. This strategic move aims to enhance the company’s capital gains while maintaining capital safety and liquidity, aligning with its core objectives. The investment is expected to yield a higher return than typical savings or time deposits, with minimal risk, and will not impact the company’s working capital or operations.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Limited Enhances Capital Gains with SPD Bank Subscription
Dec 8, 2025

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to financial products offered by SPD Bank using RMB300 million of idle funds. This strategic move aims to enhance the company’s capital gains while maintaining capital safety and liquidity. The investment is expected to yield a higher return compared to typical savings or time deposits offered by commercial banks in China. The company assures that the subscription will not impact its working capital or operations, and it aligns with the interests of the company and its shareholders.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Limited Enhances Capital Gains Through Strategic Financial Product Subscription
Nov 26, 2025

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to financial products offered by SPD Bank, utilizing RMB300 million of its idle funds. This strategic move aims to enhance the company’s capital gains while maintaining capital safety and liquidity. The subscription, which offers a higher return than typical savings or time deposits, aligns with the company’s objectives and is considered low-risk. The company has ensured that this investment will not impact its working capital or operations, thereby protecting shareholder interests.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Expands Agricultural Procurement with NL47 Agreement
Nov 5, 2025

China Feihe Limited has announced additional details regarding its NL47 Procurement Framework Agreement, which outlines the procurement of agricultural products at market prices determined through independent supplier quotes or mutual agreement. The company has set substantial annual caps for these transactions, reflecting an anticipated increase in demand driven by a growing membership on its e-commerce platform and various promotional activities. This strategic move is expected to significantly boost the company’s market presence and operational scale in the coming years.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Limited Invests RMB500 Million in SPD Bank Financial Products
Nov 5, 2025

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to financial products offered by SPD Bank, amounting to RMB500 million. This move is part of the company’s strategy to utilize idle funds effectively, aiming to enhance capital gains while ensuring capital safety and liquidity. The subscription is expected to yield higher returns compared to traditional savings or time deposits, with minimal risk involved. The company assures that the investment will not impact its working capital or operations, maintaining the interests of the company and its shareholders.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Limited Enhances Capital Gains with Strategic Financial Product Subscription
Oct 27, 2025

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to financial products from SPD Bank using RMB200 million of idle funds. This strategic move aims to enhance capital gains by utilizing surplus cash for treasury management, ensuring capital safety and liquidity, and supporting the company’s operational and dividend needs. The investment is expected to yield a higher return than typical savings or time deposits, with low associated risk, and is deemed fair and reasonable for the company and its shareholders.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

China Feihe Enters Procurement Agreement with North Latitude 47
Oct 14, 2025

China Feihe Limited has entered into a procurement framework agreement with North Latitude 47, effective from October 14, 2025, to December 31, 2027. This agreement allows Feihe HLJ, a subsidiary of China Feihe, to procure agricultural products from North Latitude 47. The transaction is classified as a continuing connected transaction under the Hong Kong Stock Exchange Listing Rules, requiring reporting and annual review but exempt from shareholder approval. This agreement is expected to enhance Feihe’s supply chain operations by securing essential agricultural products at market-competitive prices.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$4.30 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 08, 2025