China Feihe Limited (6186) AI Stock Analysis

• Market Cap: HK$38.13B
• Dividend Yield: 6.88%
• Average Volume (3M): 26.36M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.75
• Revenue Growth: -0.64%
• EPS Growth: -24.62%
• Country: HK
• Employees: 9,590
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.12
• Shares Outstanding: 9,067,252,000
• 10 Day Avg. Volume: 24,266,952
• 30 Day Avg. Volume: 26,356,611
• PEG Ratio: 2.40
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 2.23
• P/FCF Ratio: 17.28
• 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$5.03
• Price Target Upside: 21.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: HK$5.00 ▲(21.07% Upside)

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

Strong Brand Presence

China Feihe's strong brand presence and reputation for quality products support its competitive advantage in the infant milk formula market, promoting customer loyalty and sustaining long-term revenue.

Solid Financial Stability

A solid equity base and low debt-to-equity ratio provide China Feihe with financial stability, enabling it to withstand economic fluctuations and invest in growth opportunities.

Positive Cash Flow Generation

Stable operating cash flow ensures China Feihe can meet its financial obligations and invest in strategic initiatives, supporting long-term business sustainability.

Negative Factors

Declining Net Profit Margins

The decline in net profit margins suggests pressure on profitability, possibly due to increased costs or reduced pricing power, which could impact future earnings.

Inconsistent Revenue Growth

Inconsistent revenue growth raises concerns about China Feihe's ability to expand its market share and maintain steady income, potentially affecting long-term financial performance.

Decreased Return on Equity

A declining return on equity indicates challenges in generating returns for shareholders, which could impact investor confidence and the company's ability to attract capital.

China Feihe Limited Business Overview & Revenue Model

Company Description

China 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 Money

China 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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.80B	20.75B	19.53B	21.31B	22.78B	18.59B
Gross Profit	12.55B	13.76B	12.66B	13.95B	16.01B	13.48B
EBITDA	4.50B	6.24B	5.51B	6.25B	8.41B	7.13B
Net Income	2.70B	3.57B	3.39B	4.94B	6.87B	7.44B
Balance Sheet
Total Assets	33.90B	35.73B	36.19B	35.52B	31.48B	28.32B
Cash, Cash Equivalents and Short-Term Investments	16.86B	19.00B	19.15B	19.11B	17.18B	16.41B
Total Debt	845.01M	1.08B	1.64B	1.50B	1.11B	1.42B
Total Liabilities	6.75B	8.32B	9.86B	10.04B	9.08B	9.14B
Stockholders Equity	25.61B	25.93B	24.94B	23.99B	20.92B	17.75B
Cash Flow
Free Cash Flow	1.28B	2.68B	2.61B	3.80B	4.80B	6.89B
Operating Cash Flow	2.69B	4.18B	4.15B	6.28B	6.81B	7.75B
Investing Cash Flow	-1.04B	-1.32B	386.70M	-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 Price: 4.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4.13 is below the 20-day moving average (MA) of 4.27, above the 50-day MA of 4.10, and below the 200-day MA of 4.93, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 10.56 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0288	75 Outperform	$106.36B	8.45	15.40%	7.28%	5.98%	62.13%
0151	67 Neutral	$60.08B	12.84	24.70%	3.40%	2.03%	1.43%
0322	67 Neutral	$64.09B	14.41	32.58%	5.61%	-1.68%	22.06%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1717	59 Neutral	HK$3.75B	12.85	4.53%	2.70%	0.52%	99.51%
2319	56 Neutral	$57.15B	―	-0.74%	3.83%	-7.36%	-107.25%
6186	55 Neutral	HK$38.13B	13.10	10.48%	6.88%	-0.64%	-24.62%

China Feihe Limited Corporate Events

China Feihe Expands Agricultural Procurement with NL47 Agreement

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

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

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

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.

China Feihe Limited Subscribes to CITIC Bank’s Wealth Management Products

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to wealth management financial products offered by CITIC Bank, amounting to RMB400 million. This strategic move aims to utilize the company’s idle funds to enhance capital gains while maintaining low risk, aligning with the company’s core objectives of ensuring capital safety and liquidity. The subscription is expected to generate higher returns compared to typical savings or time deposits offered by commercial banks in the PRC. The company has implemented adequate internal controls to ensure this investment does not affect its working capital or operations, thereby protecting 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 Investment

China Feihe Limited has announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to a financial product offered by SPD Bank, investing RMB200 million using idle funds. This strategic move aims to enhance capital gains while maintaining low risk, aligning with the company’s objectives of ensuring capital safety and liquidity. The subscription is expected to provide a higher return compared to traditional savings, without impacting the company’s working capital or operations, thus benefiting 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 Investment in SPD Bank Products

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to financial products worth RMB300 million from SPD Bank using idle funds. This strategic move aims to enhance capital gains while maintaining low risk, aligning with the company’s objectives of ensuring capital safety and liquidity. The investment is expected to yield higher returns compared to traditional savings or time deposits, and the company has implemented internal controls to ensure that this investment does not affect its 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 Reports Decline in Interim Financial Results for 2025

China Feihe Limited reported its interim financial results for the first half of 2025, revealing a 9.4% decline in revenue to RMB9,150.5 million compared to the same period last year. The company’s gross profit decreased by 17.8%, and profit for the period fell by 46.0% to RMB1,032.5 million. These results indicate a challenging period for Feihe, potentially impacting its market positioning and stakeholder confidence.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$5.00 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 Declares Interim Dividend for 2025

China Feihe Limited has announced an interim cash dividend of HKD 0.1209 per share for the six months ending June 30, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may positively impact investor sentiment, reinforcing its stable financial position within the competitive dairy industry.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$5.00 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 Schedules Board Meeting for Interim Results

China Feihe Limited has announced that its board of directors will convene on August 28, 2025, to review and approve the company’s interim financial results for the first half of the year, ending June 30, 2025. The meeting will also consider the declaration of an interim dividend, highlighting the company’s ongoing commitment to shareholder returns and providing insights into its financial health and operational performance.

The most recent analyst rating on (HK:6186) stock is a Hold with a HK$5.50 price target. To see the full list of analyst forecasts on China Feihe Limited stock, see the HK:6186 Stock Forecast page.