Investment Rating - The report maintains a "Buy" rating for Tingyi (Cayman Islands) Holding Corp (0322) [2][4] Core Views - Non-GAAP net profit exceeded expectations, with significant improvement in gross margin [4] - Tea beverage segment performed exceptionally well [4] - Current stock price corresponds to a 2024 PE of 15X [4] Financial Performance - 1H24 revenue reached RMB 41.2 billion, up 0.7% YoY [4] - 1H24 EBITDA was RMB 4.825 billion, up 12.2% YoY [4] - 1H24 net profit attributable to shareholders was RMB 1.885 billion, up 15.1% YoY [4] - 1H24 non-GAAP net profit was RMB 1.718 billion, up 43.33% YoY [4] - 1H24 gross margin improved to 32.6%, up 2.1 percentage points YoY [4] Business Segment Analysis Instant Noodles - 1H24 revenue was RMB 13.814 billion, down 1% YoY [4] - Cup noodles revenue: RMB 6.857 billion, up 6.3% YoY [4] - Premium bagged noodles revenue: RMB 5.485 billion, down 5.5% YoY [4] - Mid-priced bagged noodles revenue: RMB 1.271 billion, down 13.8% YoY [4] - Snack noodles and others revenue: RMB 201 million, down 9.2% YoY [4] Beverages - 1H24 revenue was RMB 27.065 billion, up 1.7% YoY [4] - Tea beverages revenue: RMB 11.393 billion, up 13% YoY [4] - Packaged water revenue: RMB 2.53 billion, down 5.6% YoY [4] - Juice revenue: RMB 3.398 billion, down 10.1% YoY [4] - Carbonated drinks and others revenue: RMB 9.745 billion, down 3.2% YoY [4] Financial Projections - 2024E revenue: RMB 84.699 billion, up 5% YoY [6] - 2024E net profit: RMB 3.319 billion, up 6% YoY [6] - 2024E PE: 14.74X [6] - 2025E revenue: RMB 88.251 billion, up 4% YoY [6] - 2025E net profit: RMB 3.511 billion, up 6% YoY [6] - 2025E PE: 13.94X [6] - 2026E revenue: RMB 91.644 billion, up 4% YoY [6] - 2026E net profit: RMB 3.874 billion, up 10% YoY [6] - 2026E PE: 12.63X [6] Market Data - Current stock price: HKD 9.54 [5] - 52-week price range: HKD 7.15 - 11.86 [5] - Current market capitalization: HKD 53.753 billion [5]

Financial Performance - For the six months ended June 30, 2024, the revenue was RMB 41,201,208 thousand, representing a 0.7% increase compared to RMB 40,907,456 thousand in 2023[3] - The gross profit margin improved to 32.6%, up by 2.1 percentage points from 30.5% in the previous year[3] - The group's gross profit increased by 7.8% to RMB 13,439,915 thousand, compared to RMB 12,465,643 thousand in 2023[3] - EBITDA for the period rose by 12.2% to RMB 4,824,605 thousand, up from RMB 4,301,711 thousand in the same period last year[3] - Net profit for the period was RMB 2,235,065 thousand, a 16.2% increase from RMB 1,922,879 thousand in 2023[3] - Profit attributable to shareholders increased by 15.1% to RMB 1,885,310 thousand, compared to RMB 1,637,670 thousand in the previous year[3] Cash and Liquidity - Cash and bank deposits as of June 30, 2024, amounted to RMB 17,930,285 thousand, an increase of RMB 3,191,904 thousand from December 31, 2023[3] - The net debt to equity ratio stood at -23.0%, indicating a strong liquidity position[3] - The company reported a net cash inflow from operating activities of 3.51 billion RMB during the period, with net cash outflow from investing activities at 71 million RMB[55] - The company emphasized a prudent cash strategy, effectively controlling capital expenditures and promoting asset activation, which is expected to yield stable cash inflows[55] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 56,019,751 thousand, compared to RMB 53,149,654 thousand at the end of 2023[12] - Total liabilities increased to RMB 40,250,703 thousand from RMB 35,927,410 thousand in the previous year[12] - The total assets as of June 30, 2024, amounted to RMB 56,019,751 thousand, an increase from RMB 53,149,654 thousand as of December 31, 2023[18][20] - The total liabilities as of June 30, 2024, were RMB 40,250,703 thousand, compared to RMB 35,927,410 thousand as of December 31, 2023, indicating an increase of 12.9%[18][20] Segment Performance - The segment profit (before tax) for the instant noodles division was RMB 1,128,516 thousand for the six months ended June 30, 2024, compared to RMB 1,090,990 thousand for the same period in 2023, reflecting a growth of 3.5%[15][16][23] - The beverage segment reported a profit (before tax) of RMB 1,988,956 thousand for the six months ended June 30, 2024, up from RMB 1,558,803 thousand in the same period of 2023, marking an increase of 27.6%[15][16][23] - Instant noodle revenue declined by 1.0% to RMB 13.814 billion, accounting for 33.5% of total revenue[39] - Beverage revenue increased by 1.7% to RMB 27.065 billion, representing 65.7% of total revenue[39] Tax and Expenses - The company reported a tax expense of RMB 809,130 thousand for the six months ended June 30, 2024, compared to RMB 690,497 thousand for the same period in 2023, which is an increase of 17.1%[23] - The financial costs for the six months ended June 30, 2024, were RMB 214,229 thousand, a decrease from RMB 264,353 thousand in the same period of 2023, reflecting a reduction of 19%[23] Product Development and Market Strategy - The company launched several new products in the beverage category, including sugar-free teas, to align with the health trend, driving growth in the ready-to-drink tea segment[48] - The company actively expanded its product offerings across various price points and flavors to meet diverse consumer demands in the instant noodle market[43] - The company is focusing on developing high-quality, health-oriented products to cater to the growing middle-class demand in the premium noodle segment[45] - The beverage segment aims to accelerate the establishment of scale advantages and focus on core products while expanding innovative offerings to meet diverse consumer needs[64] Corporate Governance and Risk Management - The audit committee consists of three independent non-executive directors, with Mr. Li Changfu as the chairman, who recently reviewed the group's performance during the period[69] - The group has established a risk management framework based on the COSO model, focusing on monitoring environment, risk assessment, control activities, information and communication, and monitoring activities[70] - As of June 30, 2024, the group has implemented a comprehensive self-assessment system for internal controls, ensuring full coverage of management cycles[72] Stock Options - No stock options were granted under the 2008 Stock Option Plan during the six months ending June 30, 2024, with a total of 24,859,000 options remaining unexercised[77] - The 2018 Stock Option Plan was adopted with a total of 8,104,000 options granted, with an exercise price of HKD 16.18, valid until April 2028[78] - As of June 30, 2024, a total of 6,263,000 stock options were granted under the 2018 stock option plan, with 3,785,000 options canceled and 2,478,000 options remaining unexercised[80] - No stock options granted under the 2018 stock option plan were exercised during the six-month period ending June 30, 2024[80]

Investment Rating - The investment rating for the company is "Buy (Initiation)" [3] Core Insights - The company, Master Kong, is a leading player in both the instant noodle and beverage industries in China, holding market shares of 45.7% and 43.4% respectively in 2021. The company has a robust product matrix and a strong distribution network, along with notable performance in R&D, pricing strategies, marketing, and cost control. It has maintained a high dividend payout ratio of no less than 98% from 2018 to 2023, indicating a commitment to returning value to shareholders. In the short term, the company has raised prices for its instant noodles and beverages while raw material costs remain stable, suggesting promising performance ahead [1][4][6]. Summary by Sections Company Overview - Master Kong is a leading enterprise in the instant noodle and beverage sectors, also serving as the exclusive manufacturer and distributor for brands like Pepsi and Starbucks in China. The company has established a strong brand presence since its inception in the 1990s and has a diverse product range including container noodles, bagged noodles, ready-to-drink tea, and carbonated beverages. Its extensive sales channels effectively cover lower-tier markets, ensuring high product circulation and turnover efficiency [4][13]. Industry Situation - The instant noodle industry in China is undergoing a transformation characterized by premiumization and a shift towards sugar-free products. The market has seen growth driven by urbanization and the pandemic, although health consciousness and the rise of food delivery services have posed challenges. The beverage sector, particularly ready-to-drink tea, is experiencing a surge in demand for sugar-free options, with significant growth potential compared to Japan's market [4][24]. Core Value - Master Kong demonstrates strong operational management across various dimensions, maintaining a stable high market share in both instant noodles and beverages with continuous revenue growth over the past seven years. The company employs flexible pricing strategies and effective cost management to sustain profit levels. Its net profit and operating cash flow are stable, with substantial cash reserves supporting its high dividend payouts, reinforcing its leadership position [4][8][9]. Earnings Forecast, Valuation, and Rating - The company is projected to achieve revenues of 850.82 billion, 889.70 billion, and 924.85 billion yuan for the years 2024 to 2026, with year-on-year growth rates of 5.80%, 4.57%, and 3.95% respectively. The net profit attributable to shareholders is expected to be 34.71 billion, 36.41 billion, and 37.76 billion yuan, with growth rates of 11.33%, 4.92%, and 3.70%. The earnings per share (EPS) are forecasted to be 0.62, 0.65, and 0.67 yuan per share, with a three-year compound annual growth rate (CAGR) of 6.60%. Given the company's solid market position and consistent high dividends, it is rated as "Buy" [8][9].

Investment Rating - The report assigns an "Accumulate" rating to the company [1][7]. Core Views - The company is expected to maintain a net profit CAGR of around 8% from 2024E to 2026E, with a current dividend yield of 6% [3][7]. - The company has a strong market position in the instant noodle and beverage sectors, with a robust brand pricing power and a diversified product portfolio [3][7]. - The new consumption trends are driving industry expansion, with stable growth in instant noodles and diversified beverage offerings [3][7]. Summary by Sections Investment Recommendations - The company has consistently provided high shareholder returns, maintaining a dividend payout ratio of 100% or more, with a current dividend yield of 6% [3][7]. - The company has developed several billion-dollar products and has a strong brand pricing capability [3][7]. - The expected EPS for 2024, 2025, and 2026 is 0.61, 0.65, and 0.70 CNY respectively, with a current PE ratio of 14X for 2024 [3][7]. Company Overview - Founded in 1992, the company has grown significantly, achieving revenue of 804.2 billion CNY and a profit of 31 billion CNY by 2023 [3][8]. - The main revenue sources are instant noodles (40%) and beverages (60%) [3][12]. - The company has maintained a gross margin around 30% and a net margin fluctuating between 2% and 7% [3][12]. Competitive Advantages - The company holds a leading market share in the instant noodle sector (approximately 45%) and in the RTD tea market (approximately 50%) [3][19]. - The company has a well-established distribution network with over 4 million retail outlets, significantly surpassing competitors [3][19]. - The company has demonstrated strong brand pricing power, having raised prices multiple times over the past five years [3][24][26]. Growth Potential - The company is expected to see stable growth in the instant noodle segment and moderate growth in the beverage segment, driven by new consumption trends and product innovations [3][7]. - The anticipated CAGR for revenue from 2024 to 2026 is around 4% [3][7]. - The company is well-positioned to benefit from the increasing demand for convenient food options and health-conscious beverages [3][12].

Investment Rating - The report initiates coverage on Tingyi Holdings Corp (322 HK) with an "Outperform" rating, setting a target price of HKD 12.1, implying a 27% upside potential [4][45] Core Investment Thesis - Tingyi is a dual industry leader in instant noodles and soft drinks in China, with strong channel control and market penetration [3] - The company benefits from stable growth in beverage demand, particularly in sugar-free and value-for-money products [3] - Tingyi has maintained a 100%+ dividend payout ratio historically, offering an attractive 6.2% dividend yield [4] Business Overview - Tingyi operates in two main segments: beverages (63% of revenue) and instant noodles (36% of revenue) [34] - The beverage portfolio includes tea drinks (39%), carbonated drinks (36%), juice (14%), and packaged water (11%) [35] - Instant noodles are categorized into container noodles (47%), premium bagged noodles (41%), mid-priced bagged noodles (10%), and crispy noodles (2%) [36] Financial Performance - Revenue is expected to grow at 4.8%/4.5%/4.2% from 2024-2026, reaching RMB 84.3/88.1/91.8 billion [45] - Net profit is forecasted to increase by 7.0%/6.5%/5.2% during 2024-2026, reaching RMB 3.34/3.55/3.74 billion [45] - Gross margin is projected to improve by 0.6 percentage points in 2024, driven by price increases in beverage products [4] Industry Analysis Soft Drinks - China's soft drink market reached RMB 637.2 billion in 2023, with 5-year CAGR of 2.9% [15] - Key growth categories include carbonated drinks (7.9% CAGR), energy drinks (6.9%), and sports drinks (6.7%) [15] - Sugar-free beverages are growing rapidly, with 21.7% CAGR from 2018-2023 [19] Instant Noodles - The instant noodle market experienced 5.5% CAGR from 2015-2022, driven by pandemic demand [30] - Post-pandemic, the market faces challenges from food delivery services and changing consumer preferences [32] - Premiumization remains a key strategy, with high-end products driving growth [30] Competitive Advantages - Strong channel control with extensive coverage in small cities and rural markets [3] - Strategic partnerships with PepsiCo, Starbucks, and Ovaltine enhance product portfolio [7] - Experienced management team with long-term equity incentives aligning interests [8][12] Valuation - The report values Tingyi at 19x 2024 PE, below the sector average of 27.1x [47] - The valuation reflects the company's stable growth profile and attractive dividend yield [45] Growth Drivers - Continued expansion in sugar-free beverage products [3] - Premiumization of both beverage and instant noodle product lines [35][36] - Channel optimization and cost control measures [4]

Financial Performance - The Group's revenue for the year ended December 31, 2023, was RMB 80,418 million, representing an increase of 2.16% compared to RMB 78,717 million in 2022[12]. - Profit attributable to owners of the Company for 2023 was RMB 3,117 million, up 18.43% from RMB 2,632 million in 2022[12]. - The Group's basic earnings per share increased to RMB 55.33 in 2023 from RMB 46.73 in 2022, reflecting a growth of 18.43%[12]. - The Group's gross profit margin for 2023 was 8.53%, an increase from 5.92% in 2022[21]. - The EBIT margin for 2023 was reported at 30.39%, slightly up from 30.42% in 2022, indicating stable profitability[26]. - EBITDA grew by 13.82% year-on-year to RMB 8.207 billion[59]. - The overall gross profit margin for the Group improved to 30.42%, up from 29.09% in the previous year, with total gross profit increasing by RMB 6.85 million[65]. Market Position and Strategy - As of December 31, 2023, the Group's market capitalization was HK$53.6 billion, maintaining its position as a constituent stock of the MSCI China Index and Hang Seng Index[10]. - The Group aims to strengthen its logistics and sales network with the goal of becoming the largest Group for Chinese Instant Food & Beverage in the world[10]. - The company emphasized ongoing investments in product innovation and brand rejuvenation to drive future growth[34]. - The board anticipates that the market in 2024 will present both opportunities and challenges, focusing on high-quality development and reasonable growth in consumption[36]. - The instant noodle business will continue to offer products with multiple price bands, sizes, and flavors to meet diverse consumer demands, driving industry scale expansion[114]. - The beverage business will focus on core categories, providing joyful and healthy products for various consumption scenarios, enhancing scale advantages[114]. Product Segmentation - The instant noodles segment accounted for 41% of total revenue in 2023, while beverages contributed 57%, reflecting a balanced revenue distribution[27]. - Revenue from instant noodles declined by 2.84% year-on-year, while beverage revenue grew by 5.39% year-on-year[59]. - For the full year 2023, the revenue of the instant noodle business was RMB 28.793 billion, representing a year-on-year decline of 2.84%, accounting for 35.80% of the Group's total revenue[68]. - The beverage business generated revenue of RMB 50.939 billion, an increase of 5.39% year-on-year, accounting for 63.34% of total revenue[66]. Workforce and Operations - The company maintained a workforce of 66,807 employees in 2023, up from 64,302 in 2022, marking an increase of approximately 3.9%[30]. - The production lines slightly decreased to 571 in 2023 from 575 in 2022, indicating a minor reduction in production capacity[30]. - The Group had 66,807 employees as of December 31, 2023, focusing on sustainable development of organization and talents[108]. - Thousands of fresh graduates were recruited through over a hundred recruitment campaigns, reaching millions of potential candidates[110]. Cash Flow and Financial Position - The Group generated a net cash inflow of RMB5.495 billion from operating activities during the year[97]. - The net cash outflow from investing activities was RMB3.724 billion, including cash receipts of RMB213 million from asset activation[97]. - The net cash outflow from financing activities was RMB7.319 billion, resulting in a net decrease in cash and cash equivalents of RMB5.15 billion[97]. - As of December 31, 2023, the Group's bank deposits and cash amounted to RMB14.738 billion, a decrease of RMB5.150 billion compared to December 31, 2022[101]. - The Group's total assets and total liabilities were RMB53.150 billion and RMB35.927 billion, respectively, as of December 31, 2023, with decreases of RMB5.300 billion and RMB5.706 billion compared to December 31, 2022[102]. ESG and Sustainability Initiatives - The Company aims to create a comprehensive food and beverage "National Brand" that is trusted by the government and reassuring for consumers[116]. - Master Kong emphasizes sustainable development with a mission to promote Chinese food culture and aims to be a highly esteemed company[139]. - The company has established five core ESG tasks: food safety construction, product responsibilities, energy conservation and environmental protection, win-win partnerships, and corporate contribution[144]. - The annual performance-based compensation for senior management is linked to ESG performance indicators, directly affecting their bonuses[153]. - Master Kong's commitment to ESG practices includes a focus on emissions management, resource management, and product responsibility[197]. - Master Kong was invited to attend a high-level United Nations conference in September, where it was announced as the only Chinese food and beverage enterprise to receive the title of "Forward Faster Early Mover - Pioneer"[160]. Product Innovation and Marketing - The instant noodle business continued to innovate with new flavors and products, including collaborations with popular IPs to enhance brand engagement and sales performance[73]. - The introduction of new products like "Good Soup Noodles" and "Tom Yum Goong Noodle" aimed to capture market trends and consumer preferences for premium offerings[74]. - The company launched a suite of sugar-free products including sugar-free tea, sugar-free carbonated soft drinks, and sugar-free coffee, aligning with health trends[80]. - The "Master Kong Ice Tea" brand collaborated with Wang Yibo to enhance brand image and engage with the younger demographic through various marketing campaigns[85]. - The overall strategy includes leveraging health trends and engaging with younger consumers through innovative marketing and product offerings[83][85].

Investment Rating - The report maintains an "Outperform" rating for the company with a target price of HKD 13.09 per share [1][4] Core Views - The company achieved stable revenue growth in 2023, with total revenue reaching RMB 80.42 billion, a year-on-year increase of 2.16% [1] - Net profit attributable to shareholders increased by 18.43% year-on-year to RMB 3.12 billion, driven by improved gross profit margin and effective cost control [1] - The beverage business surpassed RMB 50 billion in revenue, with tea, juice, water, and carbonated drinks all showing growth [2][8] - The instant noodle business faced growth pressure but saw significant profitability improvement, with net profit attributable to shareholders increasing by 46.10% [9] Financial Performance - The company's gross profit margin increased by 1.33 percentage points to 30.42% in 2023, leading to a 6.85% increase in gross profit [1] - The beverage business achieved a gross profit margin of 32.10%, up 0.15 percentage points year-on-year, while the instant noodle business saw a 3.05 percentage point increase in gross profit margin to 27.00% [1][9] - The company distributed a cash dividend of RMB 3.12 billion, with a dividend payout ratio of 99.98% [1] Business Segment Analysis - Beverage business revenue reached RMB 50.94 billion, a year-on-year increase of 5.39%, with tea beverages contributing RMB 20.06 billion, up 6.96% [2][8] - Water business revenue grew by 9.78% to RMB 5.38 billion, while juice business revenue increased by 4.47% to RMB 7.15 billion [2] - Instant noodle business revenue declined by 2.84% to RMB 28.79 billion, but profitability improved significantly due to lower raw material costs and favorable pricing [9] Future Outlook - The company aims to expand its scale advantage in 2024, focusing on core categories and sugar-free trends to meet diverse consumer needs [4][9] - Revenue is projected to grow to RMB 85.78 billion in 2024, RMB 89.91 billion in 2025, and RMB 93.36 billion in 2026, with net profit attributable to shareholders expected to reach RMB 3.50 billion, RMB 3.75 billion, and RMB 4.01 billion respectively [4] - The company plans to continue offering multi-price, multi-specification, and diversified flavor products in the instant noodle segment, while accelerating the establishment of scale advantages in the beverage business [4]

[Table_MainInfo] 公司研究/食品 证券研究报告 康师傅控股（0322.HK）公司研究报告 2024年04月01日 [Table_InvestInfo] 营收平稳，盈利能力恢复，期待 24 年继 投资评级 优于大市 维持 续扩大规模优势 股票数据 0[3Ta月b2le9_日S收to盘ck价Info] [Table_Summary] （HKD） 8.58 投资要点： 52周股价波动（HKD） 7.07-13.93 总股本/流通港股（百万股） 5634/5634  事件：公司披露 2023 年年度业绩公告，其中实现营收 804.18 亿元 总市值/流通市值（百万 （YOY2.16%），实现归母净利润 31.17 亿元（YOY18.43%）。此外公司 HKD） 48343/48343 23年现金分红31.17亿元（对应股利支付率99.98%）。 相关研究 [《Ta 20b 2le 3_中R报ep业o绩rtI点nf评o：] 饮料继续表现优异，  营收平稳，盈利能力恢复。23年利润表拆分来看，收入毛利端，公司营收同 整体盈利能力恢复》 2023.08.29 比增长 2.16%，毛利率同比上升 1.33 ...

海 外 研 证券研究报告 究 ＃industryId＃ 食品饮料行业 ＃00322 .HK ＃康dy师Com傅pa控ny＃股 港股通（沪、深） dyStockco ＃inve 增stSu 持ggest ion＃ i维nv＃ d e＃ ( e持stS ） 饮品 业务增收＃ ，tit方le＃ 便 面业务增利 uggesti onC han ＃createTime1＃ 2024年 03月 28日 ge＃ 投资要点 公 ＃市场ma数rk据et Data＃ ＃summary＃ 司 ⚫ 饮品业务带动全年营收稳健增长。2023 年，康师傅控股营收为 804.2 亿 日期 2024.03.27 跟 元（人民币，下同），同比增长 2.2%，增速同比-4.1pcts。方便面业务营 收盘价（港元） 8.72 收为 287.9 亿元，同比减少 2.8%，占公司总收入 35.8%，同比-1.8pcts； 踪 总股本（亿股） 56.34 饮品业务营收为 509.4 亿元，同比增长 5.4%，占公司总收入 63.3%，同 报 总市值（亿港元） 491.32 比+1.9pcts。 告 归母净资产（亿元） 138.95 总资产（亿元） 531 ...

智通财经APP获悉，美银证券发布研究报告称，重申康师傅控股(00322)“买入”评级，认为公司今年前景良好。另将今明两年每股盈利预测上调2%及3%，目标价由10.6港元上调至11.5港元，仍然看好公司稳定增长，股息率稳健，目前估值不高。 报告中称，公司去年业绩符合预期，期内收入同比增长2.2%至804亿元人民币，该行预期为807亿元人民币；当中方便面及饮料收入分别跌2.8%及升5.4%。纯利升18.4%至31.17亿元人民币，略高于该行预期的31.11亿元人民币。该行认为，尽管康师傅仍较为审慎，并无对今年纯利预测作出指引，但预计未来三至五年的自然毛利将稳步扩张。 ...