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China Feihe Limited (HK:6186)
:6186
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China Feihe Limited (6186) AI Stock Analysis

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HK:6186

China Feihe Limited

(6186)

Rating:55Neutral
Price Target:
HK$5.00
▲(7.76% 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.

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 milk formula products. These products are distributed through a vast network of retail outlets, including supermarkets, specialty stores, and e-commerce platforms, ensuring widespread availability and accessibility. The company capitalizes on its strong brand reputation and consumer trust in its product quality to maintain a loyal customer base. Additionally, China Feihe engages in strategic partnerships and alliances to enhance its market presence and expand its product offerings, which further contributes to its revenue growth.

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
65
Positive
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
72
Positive
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
70
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.75B19.53B21.31B22.78B18.59B
Gross Profit13.76B12.66B13.95B16.01B13.48B
EBITDA6.24B5.51B6.25B8.41B7.13B
Net Income3.57B3.39B4.94B6.87B7.44B
Balance Sheet
Total Assets35.73B36.19B35.52B31.48B28.32B
Cash, Cash Equivalents and Short-Term Investments19.00B19.15B19.11B17.18B16.41B
Total Debt1.08B1.64B1.50B1.11B1.42B
Total Liabilities8.32B9.86B10.04B9.08B9.14B
Stockholders Equity25.93B24.94B23.99B20.92B17.75B
Cash Flow
Free Cash Flow2.68B2.61B3.80B4.80B6.89B
Operating Cash Flow4.18B4.15B6.28B6.81B7.75B
Investing Cash Flow-1.32B386.70M-4.80B-2.44B-3.79B
Financing Cash Flow-3.03B-2.71B-1.98B-4.25B-2.54B

China Feihe Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price4.64
Price Trends
50DMA
5.11
Negative
100DMA
5.52
Negative
200DMA
5.49
Negative
Market Momentum
MACD
-0.12
Negative
RSI
41.08
Neutral
STOCH
43.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6186, the sentiment is Neutral. The current price of 4.64 is above the 20-day moving average (MA) of 4.64, below the 50-day MA of 5.11, and below the 200-day MA of 5.49, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 43.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:6186.

China Feihe Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$21.01B14.53-7.26%3.13%3.36%-7.91%
55
Neutral
HK$41.84B10.8014.06%6.54%4.18%3.39%
$8.69B14.3325.49%4.63%
$12.86B8.0215.40%8.61%
$8.15B560.810.21%2.94%
$8.04B14.0732.58%3.26%
62
Neutral
HK$4.48B17.544.14%2.38%-1.56%30.87%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6186
China Feihe Limited
4.64
1.24
36.47%
WWNTF
Want Want China Holdings
0.73
0.10
15.87%
WHGRF
WH Group
0.98
0.33
50.77%
CIADF
China Mengniu Dairy Co
2.08
0.48
30.00%
TCYMF
Tingyi (Cayman Islands) Holding
1.41
0.29
25.89%
HK:1717
Ausnutria Dairy Corp. Ltd.
2.51
0.67
36.41%

China Feihe Limited Corporate Events

China Feihe Limited Enhances Capital Gains with SPD Bank Investment
Aug 4, 2025

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to financial products offered by SPD Bank, investing RMB300 million using idle funds. This strategic move aims to enhance the company’s capital gains while maintaining low risk, as the expected returns from these investments are higher than those from conventional savings or time deposits. The company has ensured that this investment will not impact its working capital or operations, aligning with its core objectives of capital safety and liquidity.

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.

China Feihe Issues Profit Warning and Announces Share Repurchase Plan
Jul 4, 2025

China Feihe Limited has issued a profit warning, indicating a decline in revenue and net profit for the first half of 2025 compared to the same period in 2024. This decrease is attributed to several factors, including childbirth subsidies, inventory adjustments to maintain product freshness, reduced government grants, and impairment provisions for milk powder products. Despite these challenges, the company expects a slight revenue increase by the end of 2025. Additionally, China Feihe has announced a share repurchase plan, intending to buy back shares using at least RMB1 billion from existing cash reserves, which will be used for future sales or employee incentives.

The most recent analyst rating on (HK:6186) stock is a Buy with a HK$6.30 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 Governance with New Nomination Committee Terms
Jun 24, 2025

China Feihe Limited has adopted the terms of reference for its Nomination Committee, which is part of its Board of Directors, as of June 24, 2025. This move is aimed at enhancing the governance structure of the company by clearly defining the roles and responsibilities of the Nomination Committee, which is crucial for maintaining compliance with the Listing Rules of the Hong Kong Stock Exchange.

The most recent analyst rating on (HK:6186) stock is a Buy with a HK$6.30 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 Announces AGM Results and Strategic Resolutions
May 29, 2025

China Feihe Limited held its Annual General Meeting on May 29, 2025, where all proposed resolutions were passed by poll. Key resolutions included the adoption of financial statements, declaration of a final dividend, re-election of directors, and the reappointment of Ernst & Young as auditors. The meeting also granted the board mandates to repurchase shares and issue additional shares, reflecting strong shareholder support and strategic positioning for future growth.

The most recent analyst rating on (HK:6186) stock is a Buy with a HK$6.30 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 Gain with SPD Bank Subscription
May 20, 2025

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to financial products from SPD Bank worth RMB200 million using idle funds. This strategic move aims to enhance the company’s capital gain by utilizing temporary idle funds effectively, offering a higher return than typical savings or time deposits. The subscription is aligned with the company’s core objectives of ensuring capital safety and liquidity, and it is considered to have low risk while being beneficial for the company’s shareholders.

The most recent analyst rating on (HK:6186) stock is a Buy with a HK$6.30 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
May 14, 2025

China Feihe Limited announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to a financial product offered by SPD Bank, utilizing RMB150 million of its idle funds. This strategic move is aimed at enhancing the company’s capital gains while ensuring capital safety and liquidity. The subscription is expected to yield a higher return compared to standard savings or time deposits, aligning with the company’s core objectives and benefiting its shareholders.

The most recent analyst rating on (HK:6186) stock is a Buy with a HK$6.30 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 Investment
May 8, 2025

China Feihe Limited has announced that its wholly-owned subsidiary, Feihe HLJ, has subscribed to a financial product offered by SPD Bank, utilizing RMB150 million of its idle funds. This strategic move is aimed at enhancing the company’s capital gains with a low-risk investment, offering a higher return than typical savings or time deposits. The transaction is deemed fair and reasonable, aligning with the company’s objectives of capital safety and liquidity, without affecting its working capital or operations.

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