Weilong Delicious Global Holdings Limited (9985) AI Stock Analysis

• Market Cap: HK$27.86B
• Dividend Yield: 4.49%
• Average Volume (3M): 4.84M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.57
• Revenue Growth: 23.90%
• EPS Growth: 10.72%
• Country: HK
• Employees: 7,628
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.34
• Shares Outstanding: 2,431,145,500
• 10 Day Avg. Volume: 5,111,964
• 30 Day Avg. Volume: 4,842,647
• PEG Ratio: 0.70
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 15.65
• 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$15.63
• Price Target Upside: 36.39% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: HK$13.50 ▲(17.80% Upside)

Weilong Delicious Global Holdings Limited has a solid financial foundation with strong revenue growth and profitability, which is the most significant factor in its overall score. However, technical indicators suggest a bearish trend, and the valuation is moderate. The absence of recent earnings call data and corporate events limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term expansion and competitiveness.

Profitability Margins

Strong profitability margins reflect efficient operations and cost control, enhancing the company's ability to reinvest in growth and innovation.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and reduced risk, providing flexibility for strategic investments and resilience in downturns.

Negative Factors

Cash Flow Data Limitations

The absence of recent cash flow data hinders the ability to evaluate liquidity and cash generation, potentially affecting financial planning and stability.

Declining Cash Reserves

Decreasing cash reserves may limit the company's ability to handle unexpected expenses or invest in growth opportunities, impacting long-term sustainability.

Lack of Earnings Call Data

The absence of earnings call insights limits transparency and investor understanding of management's strategic direction and operational performance.

Weilong Delicious Global Holdings Limited Business Overview & Revenue Model

Company Description

Weilong Delicious Global Holdings Ltd. produces and sells spicy snack food. It offers seasoned flour products, vegetable products, and bean-based and other products. The company was founded in 2001 and is headquartered in Luohe, China. WEILONG Delicious Global Holdings Ltd operates as a subsidiary of Hh Global Capital Ltd

How the Company Makes Money

Weilong Delicious Global Holdings Limited generates revenue through the sale of its snack products, which are distributed both domestically and internationally. The company's revenue model is based on direct sales to consumers and wholesale distribution to retailers. Key revenue streams include the sale of packaged snacks, bulk orders for food service businesses, and collaborations with major retail chains. Additionally, Weilong leverages partnerships with distributors and retailers to enhance its market reach, thereby driving sales growth. The company also invests in marketing and branding strategies to strengthen customer loyalty and expand its consumer base.

Weilong Delicious Global Holdings Limited Financial Statement Overview

Summary

Weilong Delicious Global Holdings Limited demonstrates a strong financial position with consistent revenue growth and improved profitability margins. The balance sheet is solid with low leverage, and the company efficiently manages its equity. However, the lack of recent cash flow data limits a full assessment.

Income Statement

Weilong Delicious Global Holdings Limited has shown a strong financial performance with a consistent increase in revenue over the years. The gross profit margin is robust, demonstrating effective cost management. The net profit margin has also improved, indicating enhanced profitability. EBIT and EBITDA margins are solid, reflecting strong operational efficiency. Revenue growth from 2023 to 2024 was impressive, indicating a positive business trajectory.

Balance Sheet

The company's balance sheet indicates financial stability with a strong equity base. The debt-to-equity ratio is low, suggesting low leverage and reduced financial risk. The return on equity is healthy, showcasing efficient use of equity capital. The equity ratio is strong, indicating a solid financial structure with a high proportion of assets financed by equity. However, the declining cash reserves in recent years could be a potential area of concern.

Cash Flow

Cash flow analysis shows mixed results. While the company has been generating positive free cash flow, there is a lack of data for 2024 that limits a comprehensive assessment of cash flow trends. Operating cash flow to net income ratio in previous years was strong, indicating efficient cash generation relative to net income. However, the absence of recent operating cash flow data poses a challenge in evaluating current liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.81B	6.27B	4.87B	4.63B	4.80B	4.12B
Gross Profit	3.20B	3.02B	2.32B	1.96B	1.79B	1.57B
EBITDA	1.91B	1.69B	1.43B	561.03M	1.21B	1.15B
Net Income	1.18B	1.07B	880.35M	151.30M	826.73M	818.76M
Balance Sheet
Total Assets	9.56B	8.18B	7.05B	6.93B	5.19B	2.94B
Cash, Cash Equivalents and Short-Term Investments	4.21B	2.39B	2.24B	2.72B	2.06B	1.06B
Total Debt	1.20B	418.40M	193.56M	166.60M	474.83M	410.85M
Total Liabilities	2.49B	2.18B	1.35B	1.41B	1.52B	1.31B
Stockholders Equity	7.05B	6.00B	5.71B	5.52B	3.67B	1.63B
Cash Flow
Free Cash Flow	404.67M	1.00B	1.03B	537.17M	490.64M	256.27M
Operating Cash Flow	829.43M	1.31B	1.16B	1.20B	889.13M	706.40M
Investing Cash Flow	-839.53M	-342.80M	-1.13B	-996.14M	-1.78B	-878.78M
Financing Cash Flow	1.00B	-650.16M	-828.61M	584.69M	1.26B	245.60M

Weilong Delicious Global Holdings Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 11.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9985, the sentiment is Neutral. The current price of 11.46 is above the 20-day moving average (MA) of 11.07, above the 50-day MA of 11.42, and below the 200-day MA of 12.96, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 86.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9985.

Weilong Delicious Global Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9985	66 Neutral	HK$27.86B	20.94	18.11%	4.49%	23.90%	10.72%
1579	66 Neutral	HK$12.18B	15.22	16.58%	5.89%	1.10%	-7.88%
2517	66 Neutral	HK$9.56B	27.54	10.58%	4.45%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1458	58 Neutral	HK$3.78B	19.75	4.81%	5.68%	-6.95%	297.77%
1610	58 Neutral	HK$7.10B	10.97	6.29%	―	100.45%	2.89%

Weilong Delicious Global Holdings Limited Corporate Events

Weilong Delicious Global Holdings Relocates Hong Kong Office

Weilong Delicious Global Holdings Limited has announced a change in its principal place of business in Hong Kong, moving to a new location at Unit 1007, Level 10, Tower I, Grand Century Place, Kowloon. This relocation may reflect strategic adjustments in the company’s operations or logistical considerations, potentially impacting its business activities and stakeholder engagements in the region.