Pu'er Lancang Ancient Tea Co., Ltd. (6911) AI Stock Analysis

• Market Cap: HK$99.23M
• Dividend Yield: 8.61%
• Average Volume (3M): 15.10K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.25
• Revenue Growth: -41.81%
• EPS Growth: -645.06%
• Country: HK
• Employees: 831
• Sector: General
• Sector Strength: N/A
• Industry: Agricultural Farm Products
• EPS (TTM): N/A
• Shares Outstanding: 31,500,000
• 10 Day Avg. Volume: 13,780
• 30 Day Avg. Volume: 15,103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$3.00
• Price Target Upside: -4.76% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: HK$3.00 ▼(-4.76% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and operational losses. Technical analysis suggests a neutral to slightly positive sentiment, while valuation is weak due to negative earnings, offset slightly by a high dividend yield.

Positive Factors

Market Position

The company's established presence in the tea industry, particularly in the premium Pu'er tea segment, provides a strong market position and brand recognition, which can drive long-term growth and customer loyalty.

Product Diversity

A diverse product range allows the company to cater to various consumer preferences and market segments, enhancing its ability to capture a wider customer base and mitigate risks associated with market fluctuations.

Global Demand for Premium Tea

Rising global demand for premium tea, especially Pu'er tea, positions the company to benefit from long-term industry growth trends, supporting revenue expansion and market penetration.

Negative Factors

Declining Revenue

Significant revenue decline indicates challenges in maintaining sales volume and market share, which could impact financial stability and necessitate strategic adjustments to regain growth momentum.

Increased Leverage

Higher leverage levels can strain the company's financial flexibility and increase risk, potentially affecting its ability to invest in growth opportunities or weather economic downturns.

Cash Flow Challenges

Negative cash flow signals liquidity issues, which may hinder the company's capacity to fund operations, invest in growth, and meet financial obligations, posing a risk to long-term sustainability.

Pu'er Lancang Ancient Tea Co., Ltd. Business Overview & Revenue Model

Company Description

Pu'er Lancang Ancient Tea Co., Ltd. engages in the development, manufacturing, and sale of Pu'er tea products in People's Republic of China, Hong Kong, Macau, and Taiwan. It offers its products under the 1966, Tea Mama, and Iland Tea brand names. The company sells its products through self-operated stores, distributor-operated stores, and hypermarket chains, as well as online stores. Pu'er Lancang Ancient Tea Co., Ltd. was formerly known as Lancang Ancient Tea Co., Ltd. and changed its name to Pu'er Lancang Ancient Tea Co., Ltd. in February 2018. The company was founded in 1966 and is headquartered in Pu'er, China.

How the Company Makes Money

The company generates revenue primarily through the sale of its tea products, which include both raw and fermented Pu'er tea. Key revenue streams include direct sales to consumers through retail outlets and e-commerce platforms, as well as wholesale distribution to tea merchants and retailers. Pu'er Lancang Ancient Tea Co., Ltd. may also engage in strategic partnerships with international distributors to expand its market reach. Additionally, the company might benefit from tourism activities related to its tea plantations, offering experiences and tours that promote its brand and products. Factors contributing to its earnings include the increasing global demand for premium tea and the growing popularity of Pu'er tea as a health and wellness product.

Pu'er Lancang Ancient Tea Co., Ltd. Financial Statement Overview

Summary

Pu'er Lancang Ancient Tea Co., Ltd. faced a difficult financial year in 2024, with declining revenues and increased operational losses. High leverage and reduced equity ratios present potential risks. Cash flow issues highlight liquidity challenges, necessitating strategic adjustments for financial stabilization.

Income Statement

The company experienced a sharp decline in revenue from 2023 to 2024, with a revenue growth rate of -31.5%. The gross profit margin also decreased from 67% in 2023 to 52% in 2024. The net profit margin turned negative in 2024, signifying a challenging year with net losses. EBIT and EBITDA margins also turned negative, indicating operational inefficiencies.

Balance Sheet

The debt-to-equity ratio increased from 0.38 in 2023 to 0.65 in 2024, suggesting increased leverage. Return on Equity (ROE) dropped significantly, reflecting poor profitability. The equity ratio decreased, though the company still maintains a relatively stable equity position compared to its total assets.

Cash Flow

Free cash flow turned negative, and operating cash flow also decreased, indicating liquidity challenges. The free cash flow to net income ratio is negative due to losses in net income. The company faces cash flow management issues, which require attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	583.17M	361.33M	527.35M	538.26M	673.32M	455.62M
Gross Profit	369.57M	188.01M	353.12M	304.38M	407.65M	299.86M
EBITDA	150.20M	-219.39M	168.42M	147.70M	191.98M	169.81M
Net Income	62.18M	-307.55M	80.08M	72.20M	131.01M	122.88M
Balance Sheet
Total Assets	1.64B	1.34B	1.63B	1.58B	1.46B	1.07B
Cash, Cash Equivalents and Short-Term Investments	166.08M	109.80M	262.31M	101.08M	173.15M	206.20M
Total Debt	394.94M	436.34M	385.26M	427.10M	346.72M	210.11M
Total Liabilities	657.28M	668.95M	617.67M	686.70M	534.71M	375.29M
Stockholders Equity	983.34M	671.87M	1.01B	891.72M	915.07M	695.01M
Cash Flow
Free Cash Flow	-114.93M	-163.82M	6.12M	-27.14M	-60.90M	81.68M
Operating Cash Flow	-64.21M	-107.54M	21.72M	46.09M	-10.83M	105.55M
Investing Cash Flow	-101.58M	-98.64M	-14.24M	-93.98M	-56.95M	-21.86M
Financing Cash Flow	149.89M	9.24M	164.81M	-12.02M	28.77M	-70.97M

Pu'er Lancang Ancient Tea Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6911, the sentiment is Positive. The current price of 3.15 is above the 20-day moving average (MA) of 3.15, above the 50-day MA of 3.09, and below the 200-day MA of 3.76, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 75.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6911.

Pu'er Lancang Ancient Tea Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.66B	4.30	-15.92%	6.09%	10.91%	8.39%
0197	51 Neutral	HK$73.23M	―	-22.83%	―	0.23%	-43.18%
6911	49 Neutral	HK$99.23M	5.66	-42.06%	8.61%	-41.81%	-645.06%
CMGHF	―	$5.39M	―	-9.29%	―	―	―
ACITF	―	$3.83M	―	-20.62%	―	―	―
1699	―	HK$89.96M	―		―	―	―

Pu'er Lancang Ancient Tea Co., Ltd. Corporate Events

Pu’er Lancang Ancient Tea Co., Ltd. Adjusts Net Proceeds Allocation for Enhanced Operational Flexibility

Pu’er Lancang Ancient Tea Co., Ltd. has announced a reallocation of RMB8.2 million from its net proceeds to enhance working capital and general corporate purposes. This strategic move involves redirecting funds initially intended for sales channel building, brand marketing, IT infrastructure, and the Shanquan Fermentation Project, aiming to optimize operational efficiency and financial flexibility.

The most recent analyst rating on (HK:6911) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Pu’er Lancang Ancient Tea Co., Ltd. stock, see the HK:6911 Stock Forecast page.

Pu’er Lancang Ancient Tea Co., Ltd. Announces Board Composition and Roles

Pu’er Lancang Ancient Tea Co., Ltd. has announced the composition of its board of directors and their respective roles within the company’s committees. This organizational update is crucial for stakeholders as it outlines the leadership structure, potentially impacting the company’s strategic direction and governance.

The most recent analyst rating on (HK:6911) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Pu’er Lancang Ancient Tea Co., Ltd. stock, see the HK:6911 Stock Forecast page.

Pu’er Lancang Ancient Tea Co., Ltd. Announces AGM Results and Board Changes

Pu’er Lancang Ancient Tea Co., Ltd. held its 2024 Annual General Meeting on September 1, 2025, where all proposed resolutions were passed by shareholders. Key outcomes included the appointment of Ms. Huang Lin as an independent non-executive director, changes in the board’s special committees, and amendments to the Articles of Association. These decisions are expected to influence the company’s governance and strategic direction.

The most recent analyst rating on (HK:6911) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Pu’er Lancang Ancient Tea Co., Ltd. stock, see the HK:6911 Stock Forecast page.

Pu’er Lancang Ancient Tea Co., Ltd. Releases 2025 Interim Results

Pu’er Lancang Ancient Tea Co., Ltd. has announced its unaudited interim results for the first half of 2025, which have been reviewed by the audit committee. The interim report will be available on the company’s and the Hong Kong Stock Exchange’s websites by the end of September 2025, providing stakeholders with insights into the company’s financial performance and strategic positioning.

The most recent analyst rating on (HK:6911) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Pu’er Lancang Ancient Tea Co., Ltd. stock, see the HK:6911 Stock Forecast page.

Pu’er Lancang Ancient Tea Co. Faces Operational Disruptions Due to Frozen Accounts

Pu’er Lancang Ancient Tea Co., Ltd. has announced that certain bank accounts of the company and its subsidiary, Guangzhou Kangrui Lancang Ancient Tea Co., Ltd., have been frozen due to involvement in a commercial litigation case. This freezing of accounts has disrupted the company’s daily operations and financial transactions. The litigation stems from a business cooperation dispute involving a Hebei-based company and a Guangzhou company, with Guangzhou Kangrui and its associates being named as defendants. The company is actively working with legal representatives to address the situation and ensure the resumption of normal operations.

The most recent analyst rating on (HK:6911) stock is a Hold with a HK$3.00 price target. To see the full list of analyst forecasts on Pu’er Lancang Ancient Tea Co., Ltd. stock, see the HK:6911 Stock Forecast page.

Pu’er Lancang Ancient Tea Co., Ltd. Schedules Board Meeting to Discuss Interim Results

Pu’er Lancang Ancient Tea Co., Ltd. has announced that its board of directors will meet on August 28, 2025, to consider and approve the unaudited consolidated interim results for the first half of the year ending June 30, 2025. This meeting is significant as it will provide insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and stakeholder interests.

Pu’er Lancang Ancient Tea Co., Ltd. Announces 2025 Annual General Meeting

Pu’er Lancang Ancient Tea Co., Ltd. has announced its upcoming annual general meeting scheduled for September 1, 2025, where shareholders will consider key resolutions including the approval of the 2024 financial reports, profit distribution plan, and the re-appointment of auditors. Additionally, the meeting will address the issuance and repurchase of shares, amendments to the Articles of Association, and the appointment of a new independent non-executive director. These resolutions are crucial for the company’s strategic planning and governance, potentially impacting its financial stability and market operations.

Pu’er Lancang Ancient Tea Co., Ltd. Issues Profit Warning Amid Market Challenges

Pu’er Lancang Ancient Tea Co., Ltd. has issued a profit warning, indicating a significant decline in revenue and a shift from profit to loss for the first half of 2025. The company attributes this downturn to a slow recovery in the consumer market affecting offline sales, as well as delays caused by management restructuring and strategic adjustments. These factors have impacted the company’s operations and market positioning, urging stakeholders to exercise caution.

Pu’er Lancang Ancient Tea Co. Nominates New Independent Director

Pu’er Lancang Ancient Tea Co., Ltd. has announced the nomination of Ms. Huang Lin as an independent non-executive director for the third session of its Board. Ms. Huang brings a wealth of experience in economics, financial and securities industries, and corporate management, which aligns with the company’s strategic goals and enhances board diversity.

Pu’er Lancang Ancient Tea Co., Ltd. Announces Major H Share Issuance

Pu’er Lancang Ancient Tea Co., Ltd. has announced the issuance of 24,000,000 H shares under a general mandate, with the subscription price set at HKD2.46 per share. This issuance represents a significant portion of the company’s H shares and total issued shares, potentially impacting the company’s market positioning and shareholder value.