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China Foods Limited
(0506)
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Rating:76Outperform
Price Target:
HK$4.50
▲(4.65% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong financial resilience (especially the very low leverage balance sheet) and attractive valuation (low P/E and high dividend yield). Offsetting these positives are limited growth and only mixed technical trend signals, with the price still below longer-term moving averages.
Positive Factors
Very Low Leverage
Extremely low leverage gives China Foods substantial resilience through operating volatility and preserves flexibility to fund investment, dividends, or other priorities. Minimal refinancing exposure also reduces the risk that rising financing costs could erode future earnings or constrain management decisions.
Negative Factors
Flat to Declining Revenue
A largely stagnant revenue base limits the company’s ability to compound earnings and spread fixed costs across a growing platform. The 2025 decline suggests that near-term business expansion is not yet established, making sustained improvement dependent on renewed demand or stronger execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Extremely low leverage gives China Foods substantial resilience through operating volatility and preserves flexibility to fund investment, dividends, or other priorities. Minimal refinancing exposure also reduces the risk that rising financing costs could erode future earnings or constrain management decisions.
Read all positive factors
China Foods Limited (0506) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$11.27B
Dividend Yield4.42%
Average Volume (3M)4.39M
Price to Earnings (P/E)10.8
Beta (1Y)0.35
Revenue Growth4.39%
EPS Growth8.53%
CountryHK
Employees18,349
SectorConsumer Defensive
Sector Strength42
IndustryBeverages - Non-Alcoholic
Share Statistics
EPS (TTM)0.32
Shares Outstanding2,797,223,400
10 Day Avg. Volume8,352,958
30 Day Avg. Volume4,387,695
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)1.58
Price to Sales (P/S)0.49
P/FCF Ratio5.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$5.21Price Target Upside21.09% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.33
Revenue Forecast (FY)HK$23.22B
China Foods Limited Business Overview & Revenue Model
Company Description
China Foods Limited, an investment holding company, manufactures, distributes, markets, and sells Coca-Cola series products in the People's Republic of China. The company offers sparkling drinks, juices, water, milk drinks, energy drinks, tea, cof...
How the Company Makes Money
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China Foods Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
90
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.56B | 22.07B | 21.49B | 21.45B | 20.97B | 19.78B |
| Gross Profit | 8.19B | 8.18B | 8.12B | 7.54B | 7.50B | 7.06B |
| EBITDA | 2.79B | 2.81B | 2.61B | 2.52B | 2.19B | 1.89B |
| Net Income | 907.21M | 861.97M | 860.53M | 832.58M | 659.84M | 572.41M |
Balance Sheet | ||||||
| Total Assets | 19.48B | 18.39B | 17.60B | 16.23B | 15.06B | 15.17B |
| Cash, Cash Equivalents and Short-Term Investments | 5.90B | 4.55B | 4.02B | 2.55B | 1.11B | 1.68B |
| Total Debt | 55.18M | 68.30M | 85.58M | 79.38M | 57.71M | 77.23M |
| Total Liabilities | 8.39B | 7.83B | 7.40B | 6.54B | 6.20B | 6.78B |
| Stockholders Equity | 7.09B | 6.90B | 6.46B | 6.02B | 5.52B | 5.16B |
Cash Flow | ||||||
| Free Cash Flow | 652.21M | 2.17B | 2.07B | 1.80B | 259.17M | 360.41M |
| Operating Cash Flow | 1.38B | 3.23B | 2.85B | 2.43B | 1.14B | 1.07B |
| Investing Cash Flow | -820.74M | -1.06B | -560.83M | -564.43M | -851.23M | -846.64M |
| Financing Cash Flow | -1.05B | -1.63B | -564.93M | -609.65M | -844.13M | -496.06M |
China Foods Limited Technical Analysis
Positive
4.30
Price Trends
3.40
Positive
3.39
Positive
3.67
Positive
Market Momentum
0.18
Negative
78.99
Negative
93.19
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0506, the sentiment is Positive. The current price of 4.3 is above the 20-day moving average (MA) of 3.58, above the 50-day MA of 3.40, and above the 200-day MA of 3.67, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 78.99 is Negative, neither overbought nor oversold. The STOCH value of 93.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0506.
China Foods Limited Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | HK$476.85B | 24.04 | 44.39% | 2.70% | 26.71% | 31.59% | |
77 Outperform | HK$78.28B | 11.29 | 25.76% | ― | ― | ― | |
76 Outperform | HK$11.27B | 10.78 | 12.97% | 4.42% | 4.39% | 8.53% | |
71 Outperform | HK$32.18B | 12.76 | 16.17% | 7.33% | 3.65% | 4.00% | |
71 Outperform | HK$17.89B | 20.35 | 7.15% | 8.48% | ― | ― | |
70 Outperform | HK$22.07B | 87.88 | 9.12% | 1.56% | -13.68% | -19.91% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
HK:0506
China Foods Limited
3.93
0.09
2.29%
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36.09%
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Nongfu Spring Co., Ltd. Class H
41.10
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-18.61%
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China Resources Beverage (Holdings) Company Limited
7.45
-3.44
-31.58%
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MIXUE Group Class H
203.00
-204.80
-50.22%
China Foods Limited Corporate Events
China Foods Senior Management Plans Open-Market Share Purchases
Aug 26, 2026
China Foods Limited has announced that its senior management, including executive directors, plan to purchase up to 1 million shares of the company on the open market within two months. The move is based on management’s confidence in the com...
China Foods Posts Higher Interim Earnings Amid Margin Pressure and No Dividend
Aug 25, 2026
China Foods Limited reported a 4.0% year-on-year increase in revenue to RMB 12.76 billion for the six months ended 30 June 2026, with adjusted EBIT up 5.4% and adjusted EBITDA rising 6.0%. Despite the topline and earnings growth, gross profit marg...
China Foods Sets Board Meeting to Approve Interim Results and Consider Dividend
Aug 6, 2026
China Foods Limited has scheduled a board meeting for 25 August 2026 to approve the interim results for the six months ended 30 June 2026 and to authorize their publication. The board will also consider the payment of an interim dividend, which co...
China Foods Updates Bermuda Registered Office, Keeps Hong Kong Share Registrar Unchanged
Aug 3, 2026
China Foods Limited has announced a change to its registered office address in Bermuda, effective 3 August 2026, moving to Richmond House on Par-la-Ville Road in Hamilton. The shift reflects an administrative update to its corporate domicile while...
China Foods Sets Out Board Line-Up and Committee Roles
Jun 10, 2026
China Foods Limited has detailed the current composition of its eight-member board of directors, specifying which directors serve as executive, non-executive and independent non-executive members. The company has also clarified the leadership and ...
China Foods reshapes board with COFCO branding veteran as new non-executive director
Jun 10, 2026
China Foods Limited, a Hong Kong-listed food company majority-owned by COFCO Corporation, leverages its parent’s extensive presence in China’s consumer and agribusiness markets. The group’s backing supports the company’s po...
China Foods Sets Final Dividend and HKD Payout Terms for 2025
Jun 9, 2026
China Foods Limited has declared a final ordinary cash dividend of RMB 0.154 per share for the financial year ended 31 December 2025, with shareholder approval obtained on 9 June 2026. The dividend will be paid in Hong Kong dollars at HKD 0.177 pe...
China Foods Shareholders Approve All AGM Resolutions, Back Dividend and Board Mandates
Jun 9, 2026
Shareholders of China Foods Limited approved all 12 resolutions at the 9 June 2026 annual general meeting, including the adoption of 2025 audited accounts and a final dividend of RMB0.154 per share. Investors also backed the election and re-electi...
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.