Want Want China Holdings Ltd.

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Company Background

Want Want China Holdings is a Taiwanese confectionery company headquartered in Shanghai, China. It offers a wide array of products ranging from snack foods such as gummies to baby milk powder and other dairy products. It holds an about 80% share of the rice cracker market, taking advantage of technical assistance provided by the Japanese company Iwatsuka Confectionery. Want Want China was listed on the Hong Kong Stock Exchange in 2008.

The predecessor of Want Want China was a Taiwan-based food manufacturing factory opened in 1962 by the father of Tsai Eng-meng, Want Want China's current chairman. At the age of 19, Tsai succeeded his father in the business. When he was 24, he visited Japan to meet Iwatsuka's founder Keisaku Maki to ask for technical assistance. Want Want China started growing dramatically from 1983, when Maki agreed to provide technical support.

Rice crackers are the company's core business. Technical staff sent by Iwatsuka guide employees on how to select materials and manage facilities. Implementation of strict quality control has helped the company gain customer confidence in China, where food safety problems have often occurred.

Want Want China has more than 100 factories and over 300 sales offices throughout China. With a sales force of more than 10,000, the company has extended its marketing reach deeply into the country's interior, including the Xinjiang Uighur Autonomous Region and Qinghai Province. It generates 80% of its total sales from regional small enterprises, such as privately owned shops.

The company is working to strengthen its dairy products division as a way to diversify its operations further. As such, it has tied up with the Japanese company Morinaga Milk Industry. While the Chinese market makes up approximately 80% of its rice cracker sales, the company will have to focus more other markets for growth.

Business Summary

Want Want China Holdings Ltd. is an investment holding company, which engages in the manufacture, distribution & sale of food and beverages. It operates through the following segments: Rice Crackers, Dairy Products and Beverages, Snack Foods and Other Products. The Rice Crackers segment manufactures sugar coated crackers, savory crackers, and fried crackers. The Dairy Products and Beverages segment includes flavored milk, yogurt drinks, ready-to-drink coffee, carbonated drinks, herbal tea, and milk powder. The Snack Foods segment comprises of candies, popsicles and jellies, ball cakes, beans, and nuts. The Other Products segment consists of mainly wine and other food products. Want Want China Holdings was founded on October 3, 2007 and is headquartered in Shanghai, China.

Financial Highlights

Mar 2019	HKD	USD
Revenue	24,201.23M	3,086.06M
Gross Profit	10,647.54M	1,357.74M
Operating income	4,850.57M	618.53M
Income before tax	5,622.36M	716.94M
Net income	4,062.27M	518.00M
EBITDA	5,814.77M	741.48M
Diluted EPS	0.32	0.04
Dividends Per Share	0.23	0.02
Total Assets	34,852.31M	4,439.81M
Total liabilities	16,830.40M	2,144.01M
Total equity	17,907.98M	2,281.28M
Operating cash flow	5,086.58M	648.62M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2014	Dec 2015	Dec 2016	Mar 2018	Mar 2019
Revenue	29,276.54M	26,383.31M	23,029.67M	23,890.39M	24,201.23M
Gross Profit	11,504.24M	11,213.91M	10,631.86M	10,293.14M	10,647.54M
Operating income	5,552.90M	5,600.76M	5,519.92M	4,188.53M	4,850.57M
Income before tax	6,436.89M	5,926.89M	5,727.51M	5,067.77M	5,622.36M
Net income	4,811.81M	4,172.28M	4,111.86M	3,671.49M	4,062.27M
EBITDA	6,469.79M	6,621.35M	6,556.00M	5,231.53M	5,814.77M
Diluted EPS	0.36	0.31	0.32	0.29	0.32
Dividends Per Share	0.18	0.14	0.13	0.14	0.23
Total Assets	33,219.88M	29,498.40M	30,355.71M	33,284.64M	34,852.31M
Total liabilities	17,261.90M	14,975.49M	16,609.98M	15,058.93M	16,830.40M
Total equity	15,897.51M	14,463.92M	13,690.26M	18,072.65M	17,907.98M
Operating cash flow	2,297.18M	6,101.49M	5,968.04M	6,265.04M	5,086.58M

	Dec 2014	Dec 2015	Dec 2016	Mar 2018	Mar 2019
Revenue	3,775.33M	3,403.16M	2,966.80M	3,059.21M	3,086.06M
Gross Profit	1,483.52M	1,446.47M	1,369.65M	1,318.05M	1,357.74M
Operating income	716.07M	722.43M	711.10M	536.35M	618.53M
Income before tax	830.06M	764.50M	737.84M	648.93M	716.94M
Net income	620.50M	538.18M	529.71M	470.14M	518.00M
EBITDA	834.30M	854.08M	844.57M	669.90M	741.48M
Diluted EPS	0.04	0.04	0.04	0.03	0.04
Dividends Per Share	0.02	0.01	0.01	0.01	0.02
Total Assets	4,283.75M	3,806.17M	3,915.27M	4,241.01M	4,439.81M
Total liabilities	2,225.95M	1,932.28M	2,142.35M	1,918.75M	2,144.01M
Total equity	2,050.00M	1,866.27M	1,765.76M	2,302.75M	2,281.28M
Operating cash flow	296.23M	787.02M	768.83M	802.25M	648.62M

Valuation Measures

Mar 2019
PER	19.98
ROA	11.92%
ROE	22.58%
Operating margin	20.04%
Profit margin	16.78%

Key executives

Chairman & Chief Executive Officer: Eng-Meng Tsai
COO, Executive Director, VP-Dairy & Beverages: Wang-Chia Tsai
Chief Financial Officer & Executive Director: Chi-Wen Chu
MD-Research & Development Department: Chun-Chiang Chen
MD-Information Technology Department: Hung-Hsing Ting

Shareholders

TSAI ENG MENG (49.4%)
Iwatsuka Confectionery Co., Ltd. (4.9%)
CHENG WEN HSIEN (3.7%)
The Vanguard Group, Inc. (1.2%)
TSAI WANG CHIA (0.8%)
TSAI SHAO CHUNG (0.8%)
BlackRock Fund Advisors (0.7%)
Investec Asset Management Ltd. (0.6%)
TAI WANG JUNG (0.6%)
TSAI WANG CHEN (0.6%)

Contact Details

Website:http://www.want-want.com
Phone: +86.21.6115111

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Competitors

Last Updated on 15 Nov, 2019