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Pu'er Lancang Ancient Tea Co., Ltd. (HK:6911)
:6911
Hong Kong Market

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

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HK:6911

Pu'er Lancang Ancient Tea Co., Ltd.

(6911)

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Neutral 45 (OpenAI - 5.2)
Rating:45Neutral
Price Target:
HK$3.00
▲(37.61% Upside)
The score is held down primarily by weak financial performance (revenue decline, negative profitability, and negative free cash flow) and limited valuation support due to losses and no dividend data. Technicals provide partial offset with the stock trading above major moving averages, though momentum indicators look stretched and mixed.
Positive Factors
Premium sourcing & brand
Specialized sourcing from the Lancang region and focus on ancient tea cultivation create durable brand differentiation and product scarcity. This supports long-term customer loyalty, pricing power in premium segments, and resilient demand across domestic and export channels.
Diversified sales channels
Multiple distribution channels — direct, e-commerce, exports and distributor partnerships — reduce reliance on any single channel, improve customer reach, and provide structural growth avenues. This supports steadier revenue and margin expansion over the medium term.
Low systematic volatility
A low beta indicates the company's earnings and cash flows are less correlated with broad market swings, reflecting stable consumer demand for staple premium tea. This structural stability aids planning, capital allocation, and lowers financing stress during market volatility.
Negative Factors
Sharp revenue decline
A sustained >30% revenue decline materially reduces economies of scale and market positioning. Over months this undermines reinvestment capacity, erodes bargaining power with suppliers/distributors, and makes recovery slower without clear demand-restoration actions.
Margin compression and losses
Significant gross margin erosion coupled with negative operating and net margins indicates structural cost or pricing pressure. Persisting margin weakness impairs free cash generation, limits investment in brand or supply chain, and increases reliance on external funding.
Weak cash generation and higher leverage
Rising debt and negative free cash flow signal reduced financial flexibility and higher liquidity risk. Over 2-6 months this constrains working capital, limits capacity to invest in growth or quality improvements, and increases refinancing and creditor pressure if recovery lags.

Pu'er Lancang Ancient Tea Co., Ltd. (6911) vs. iShares MSCI Hong Kong ETF (EWH)

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

Company DescriptionPu'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 MoneyThe company generates revenue through the sale of its diverse range of Pu'er tea products, which are marketed to tea enthusiasts, retailers, and wholesalers. Key revenue streams include direct sales of packaged tea products, online sales through e-commerce platforms, and export opportunities to international markets. Additionally, the company may benefit from partnerships with tea distributors and retailers, which help expand its market reach. Seasonal promotions and limited-edition products also contribute to increased sales during peak tea consumption periods. By focusing on high-quality sourcing and traditional processing methods, Pu'er Lancang Ancient Tea Co., Ltd. positions itself as a premium brand in the competitive tea market, driving customer loyalty and repeat purchases.

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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue285.71M361.33M527.35M462.87M558.68M405.46M
Gross Profit125.02M188.01M353.12M304.38M407.65M299.86M
EBITDA-90.80M-219.39M168.42M114.01M191.98M169.81M
Net Income-341.58M-307.55M80.08M72.20M131.01M122.88M
Balance Sheet
Total Assets1.25B1.34B1.63B1.58B1.46B1.07B
Cash, Cash Equivalents and Short-Term Investments66.98M109.80M262.31M101.08M141.55M206.20M
Total Debt462.85M436.34M385.26M380.41M283.44M177.21M
Total Liabilities607.97M668.95M617.67M686.70M534.71M375.29M
Stockholders Equity642.69M671.87M1.01B794.24M915.07M586.19M
Cash Flow
Free Cash Flow-127.50M-163.82M6.12M-27.14M-60.90M81.68M
Operating Cash Flow-94.75M-107.54M21.72M46.09M-10.83M105.55M
Investing Cash Flow-45.67M-98.64M-14.24M-76.82M-56.19M-20.95M
Financing Cash Flow39.54M9.24M164.81M-14.34M32.81M-59.38M

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

Technical Analysis Sentiment
Negative
Last Price2.18
Price Trends
50DMA
2.67
Negative
100DMA
2.85
Negative
200DMA
2.95
Negative
Market Momentum
MACD
0.09
Negative
RSI
45.04
Neutral
STOCH
71.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6911, the sentiment is Negative. The current price of 2.18 is below the 20-day moving average (MA) of 2.61, below the 50-day MA of 2.67, and below the 200-day MA of 2.95, indicating a bearish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6911.

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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
51
Neutral
HK$69.04M-0.28-30.07%-3.16%33.72%
48
Neutral
HK$58.33M-3.13-7.84%-15.08%12.98%
45
Neutral
HK$174.83M-0.85-42.06%10.64%-41.81%-645.06%
45
Neutral
HK$25.78M-0.99-19.29%-55.40%14.13%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6911
Pu'er Lancang Ancient Tea Co., Ltd.
2.49
-2.50
-50.10%
HK:0682
Chaoda Modern Agriculture Holdings
0.30
0.08
38.89%
HK:0197
Heng Tai Consumables Group
0.32
0.17
113.33%
HK:0073
Asian Citrus Holdings
1.73
-0.68
-28.22%

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

Pu’er Lancang Ancient Tea Shareholders Approve PRC Accounting Standards and New Auditor
Dec 30, 2025

Pu’er Lancang Ancient Tea Co., Ltd. announced that shareholders at its fourth extraordinary general meeting of 2025, held on 30 December in Yunnan, approved all proposed ordinary resolutions by poll, with approximately 47.57% of the company’s issued share capital represented. Investors voted overwhelmingly in favor of adopting China Accounting Standards for Business Enterprises for the preparation of financial reports and appointing Da Hua Certified Public Accountants (Special General Partnership) as the company’s auditors until the next annual general meeting, reinforcing the company’s alignment with PRC accounting norms and formalizing its external audit oversight. All directors attended the meeting, no shareholders were required to abstain from voting or voted against the resolutions, and the poll was independently scrutinized, underscoring procedural compliance and governance stability for stakeholders.

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 Proposes Governance Overhaul to Align With New PRC and HK Rules
Dec 24, 2025

Pu’er Lancang Ancient Tea Co., Ltd. has proposed amendments to its Articles of Association to bring its corporate governance framework in line with the newly amended PRC Company Law, the 2025 Guidelines for the Articles of Association of Listed Companies issued by the China Securities Regulatory Commission, and recent changes to the Hong Kong listing rules. Key changes include abolishing the supervisory committee, updating relevant provisions under the latest regulatory guidelines, and formally enabling hybrid general meetings and electronic voting to enhance shareholder participation and governance efficiency. The company will also revise the rules of procedure for shareholders’ general meetings and for the board of directors to align with these constitutional changes and applicable regulations in its listing jurisdiction, with all proposals subject to shareholder approval by special resolution at an upcoming general meeting.

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 Reshapes Operations to Cut Costs Amid Litigation and Account Freezes
Dec 22, 2025

Pu’er Lancang Ancient Tea Co., Ltd. has implemented a strategic reorganization of its business segments, relocating primary Pu’er tea storage from Foshan, Guangdong back to Pu’er, Yunnan to capitalize on better storage conditions and lower warehouse rents, a move expected to cut annual rental expenses by about RMB4.3 million. As part of this reshuffle, the distribution business has been reassigned to Pu’er Lancang Ancient Tea Renhe Co., Ltd., while the e-commerce and direct sales segments have been transferred to dedicated entities in Guangzhou and Shenzhen to support growth in the Greater Bay Area, with the company stating that these changes have not materially affected normal operations despite ongoing litigation and related freezing of certain bank accounts stemming from a failed 2024 product cooperation involving a Guangzhou subsidiary.

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 2025 Extraordinary General Meeting
Dec 14, 2025

Pu’er Lancang Ancient Tea Co., Ltd. has announced the convening of its fourth extraordinary general meeting on December 30, 2025. Key resolutions include adopting China Accounting Standards for Business Enterprises for financial reporting and appointing Da Hua Certified Public Accountants as the company’s auditors. These decisions are expected to enhance the company’s financial transparency and compliance, potentially strengthening its market position and stakeholder confidence.

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. to Adopt China Accounting Standards and Change Auditors
Dec 8, 2025

Pu’er Lancang Ancient Tea Co., Ltd. has announced its intention to adopt China Accounting Standards for Business Enterprises for preparing its financial reports starting from the year ending December 31, 2025. This move is aimed at improving operational efficiency and is not expected to materially affect the company’s financial position or operations. Additionally, the company has proposed a change of auditors from SHINEWING (HK) CPA Limited to Da Hua Certified Public Accountants, citing cost-effectiveness and audit quality as key reasons for the change. The proposed changes are subject to shareholder approval at the upcoming extraordinary general meeting.

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 Key Executive Changes
Nov 13, 2025

Pu’er Lancang Ancient Tea Co., Ltd. has announced significant changes in its executive team, with the resignation of Ms. He Yunhong and Ms. Wong Yuen Ki from their roles as joint company secretaries and authorized representatives, effective November 13, 2025. Ms. Ko Pui Yu has been appointed as the new company secretary, bringing over 10 years of experience in company secretarial and compliance services. Additionally, Mr. Wan Feng has been appointed as the board secretary, replacing Mr. Zhou Xinzhong. These changes are expected to strengthen the company’s governance and compliance framework.

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 Arbitration Ruling Over Loan Dispute
Oct 28, 2025

Pu’er Lancang Ancient Tea Co., Ltd. announced that its subsidiary, Guangzhou Kangrui Lancang Ancient Tea Co., Ltd., received an arbitration award from the Shenzhen International Court of Arbitration related to a loan dispute. The arbitration decision requires Guangzhou Kangrui to repay the loan principal, overdue interest, and other fees, with former director Ms. Wang Juan bearing joint liability. The company uncovered that the loan was misappropriated for personal use by Ms. Wang and Mr. Zhang Muheng, who have agreed to compensate the company for the resulting economic losses.

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 Executive Resignation
Oct 24, 2025

Pu’er Lancang Ancient Tea Co., Ltd. announced the resignation of Mr. Zhang Muheng from his roles as executive director and vice president due to personal health reasons. Despite his resignation, Mr. Zhang will continue to serve in key roles at a wholly-owned subsidiary, ensuring continuity in leadership. The company expressed gratitude for his contributions, and there are no disagreements or issues to report regarding his departure.

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.

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: Jan 07, 2026