Vedan International (Holdings) Ltd. (2317) AI Stock Analysis

• Market Cap: HK$1.04B
• Dividend Yield: 9.98%
• Average Volume (3M): 39.07K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.39
• Revenue Growth: -1.19%
• EPS Growth: -9.05%
• Country: HK
• Employees: 4,033
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.04
• Shares Outstanding: 1,522,742,100
• 10 Day Avg. Volume: 51,200
• 30 Day Avg. Volume: 39,066
• PEG Ratio: 0.05
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 2.50
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: HK$1.00 ▲(47.06% Upside)

Vedan International's strong financial performance and attractive valuation are the primary drivers of its overall score. The company demonstrates robust profitability, operational efficiency, and cash flow generation, supported by a solid balance sheet. While technical indicators suggest a lack of short-term momentum, the stock's low P/E ratio and high dividend yield present a compelling investment opportunity.

Vedan International (Holdings) Ltd. Business Overview & Revenue Model

Company Description

Vedan International (Holdings) Limited, an investment holding company, produces and sells fermentation-based amino acids, food additive products, biochemical products, and cassava starch based industrial products. It offers starch-based industrial products, including native starch, a cassava starch for the production of sausages, ice-creams, canned soup, and noodles; modified starch for industrial applications in textile, paper, food, feed-stuff, and cosmetic products; and glucose syrup for processing of food, confectionery, and bakery products, as well as to produce monosodium glutamate (MSG) and glutamic acid (GA) products, and lysine. The company also provides specialty chemical products, such as caustic soda for the production of MSG products, as well as used in metal processing and food, textile, cosmetics, paint, water treatment, and detergent products; hydrochloric acid for the production of GA products, as well as used in food and textile products, beverages, seafood processing, and metal processing; and hypochlorite that is used as bleaching agent and for the production of detergent products. In addition, it offers PGA hydrogels, gamma-poly-glutamic acid products, and poly-glutamic acid hydrogels. The company sells its products under the VEDAN brand. It serves food distributors and international trading companies, as well as manufacturers of food, paper, textile, and chemical products. It operates in Vietnam, Japan, the People's Republic of China, the United States, Taiwan, ASEAN countries, and internationally. Vedan International (Holdings) Limited is based in Kowloon, Hong Kong.

How the Company Makes Money

Vedan International (Holdings) Ltd. generates revenue primarily through the sale of its fermentation-based products, which include amino acids, food additives, starches, and other related products. The company's key revenue streams consist of direct sales to food and beverage manufacturers, who use these products as ingredients in their products. Additionally, Vedan has developed partnerships with various distributors to expand its market reach. The company's advanced fermentation technology allows it to produce high-quality and cost-effective products, which contributes significantly to its earnings. Market demand for healthier and more nutritious food options further drives the company's revenue growth.

Vedan International (Holdings) Ltd. Financial Statement Overview

Summary

Vedan International exhibits a strong financial recovery with improved profitability, operational efficiency, and cash flow generation. The balance sheet remains robust with low leverage and high equity ratios, ensuring financial stability. The company is well-positioned with the capability to sustain its operations and pursue growth opportunities.

Income Statement

Vedan International shows a solid recovery in profitability with the net profit margin increasing from 1.81% in 2023 to 4.22% in 2024. The gross profit margin improved to 17.42% in 2024. The revenue growth rate is slightly negative at -1.55% from 2023 to 2024, but the EBIT margin significantly increased to 6.03% in 2024, indicating enhanced operational efficiency. Overall, the income statement reflects a strong rebound in profitability and operational performance.

Balance Sheet

The company maintains a robust financial position with a low debt-to-equity ratio of 0.09 in 2024, reflecting low leverage. The equity ratio is strong at 81.96%, indicating financial stability. Return on equity improved to 5.31% in 2024, showcasing effective utilization of equity. Overall, the balance sheet is solid with low leverage and high equity, supporting a stable financial structure.

Cash Flow

Vedan International achieved a remarkable increase in free cash flow from 23.23 million in 2023 to 43.02 million in 2024, reflecting a significant growth rate of 85.18%. The operating cash flow to net income ratio improved, indicating strong cash flow generation relative to net income. Free cash flow to net income ratio also improved, supporting financial flexibility. Overall, the cash flow statement highlights robust cash flow generation and efficient capital management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	379.30M	380.18M	386.17M	451.01M	382.36M	360.74M
Gross Profit	65.15M	66.24M	55.43M	43.35M	60.37M	72.56M
EBITDA	44.42M	45.78M	35.14M	15.14M	33.56M	44.56M
Net Income	15.31M	16.05M	6.99M	-4.39M	11.01M	16.65M
Balance Sheet
Total Assets	371.45M	368.69M	383.51M	405.97M	389.15M	386.54M
Cash, Cash Equivalents and Short-Term Investments	61.66M	64.01M	50.36M	47.81M	69.74M	72.16M
Total Debt	30.88M	28.52M	46.72M	63.10M	43.33M	49.38M
Total Liabilities	69.81M	66.28M	88.73M	114.25M	87.13M	85.27M
Stockholders Equity	301.40M	302.19M	294.56M	291.49M	301.79M	301.06M
Cash Flow
Free Cash Flow	45.97M	43.02M	23.23M	-36.12M	13.46M	9.92M
Operating Cash Flow	53.65M	48.62M	32.18M	-24.71M	24.87M	45.64M
Investing Cash Flow	-9.69M	-1.02M	-30.03M	-7.34M	15.58M	-45.88M
Financing Cash Flow	-33.99M	-28.90M	-19.71M	16.43M	-17.63M	-83.00K

Vedan International (Holdings) Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.68
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2317, the sentiment is Neutral. The current price of 0.68 is below the 20-day moving average (MA) of 0.68, below the 50-day MA of 0.70, and above the 200-day MA of 0.58, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 47.26 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2317.

Vedan International (Holdings) Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2317	75 Outperform	HK$1.04B	8.67	5.08%	9.98%	-1.19%	-9.05%
1583	64 Neutral	$981.63M	93.53	0.79%	0.00%	-1.70%	104.41%
0829	64 Neutral	HK$888.38M	―	-0.99%	14.55%	-4.42%	-157.03%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
3838	60 Neutral	HK$1.15B	2.53	10.38%	5.10%	-6.58%	16.23%
8476	56 Neutral	HK$1.05B	25.12	15.07%	1.11%	-13.70%	2.27%
0809	44 Neutral	HK$1.34B	0.95	―	―	42.14%	-81.25%

Vedan International (Holdings) Ltd. Corporate Events

Vedan International Confirms Compliance with Listing Rules in 2024 Annual Report

Vedan International (Holdings) Limited, incorporated in the Cayman Islands, has issued a supplemental announcement regarding its 2024 Annual Report. The company confirmed that all related party transactions disclosed in the report are continuing connected transactions, with the exception of a fully exempted transaction involving agency commission income from Taiwan Vedan. The company has adhered to the compliance requirements of the Hong Kong Stock Exchange’s Listing Rules.

The most recent analyst rating on (HK:2317) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Vedan International (Holdings) Ltd. stock, see the HK:2317 Stock Forecast page.

Vedan International Announces Interim Dividend for 2025

Vedan International (Holdings) Ltd. announced an interim cash dividend of USD 0.003 per share for the six months ending June 30, 2025, with payment scheduled for October 13, 2025. The announcement corrects the ex-dividend date to September 18, 2025, and outlines the record date as September 25, 2025. This update reflects the company’s commitment to shareholder returns and may influence investor sentiment positively.

The most recent analyst rating on (HK:2317) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Vedan International (Holdings) Ltd. stock, see the HK:2317 Stock Forecast page.

Vedan International Reports Slight Decline in Interim Results but Increases Dividend

Vedan International announced its unaudited interim results for the six months ending June 30, 2025, showing a slight decline in revenue and profit compared to the previous year. Despite the decrease in earnings, the company proposed an increased interim dividend per share, indicating a commitment to returning value to shareholders and confidence in its financial stability.

The most recent analyst rating on (HK:2317) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Vedan International (Holdings) Ltd. stock, see the HK:2317 Stock Forecast page.

Vedan International Declares Interim Dividend for 2025

Vedan International (Holdings) Ltd. announced an interim ordinary dividend of USD 0.003 per share for the six months ending June 30, 2025, payable in Hong Kong dollars at an exchange rate of USD 1 to HKD 7.779. The ex-dividend date is set for September 18, 2025, with payment scheduled for October 13, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment positively.

The most recent analyst rating on (HK:2317) stock is a Buy with a HK$1.00 price target. To see the full list of analyst forecasts on Vedan International (Holdings) Ltd. stock, see the HK:2317 Stock Forecast page.

Vedan International Announces Upcoming Board Meeting for Interim Results

Vedan International (Holdings) Ltd. has announced that its board of directors will meet on August 26, 2025, to review and approve the interim financial results for the first half of the year ending June 30, 2025. The meeting will also consider the declaration of an interim dividend and address any other business matters, potentially impacting the company’s financial strategies and shareholder returns.