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Consumer Non-Durables

Want Want China Holdings Ltd.

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 2020 HKDUSD
Revenue22,545.59M2,884.31M
Gross Profit10,832.72M1,385.85M
Operating income4,990.90M638.49M
Income before tax5,668.38M725.17M
Net income4,094.33M523.79M
EBITDA5,984.52M765.61M
Diluted EPS0.320.04
Dividends Per Share0.230.03
Total Assets32,590.90M4,204.78M
Total liabilities15,812.76M2,040.12M
Total equity16,689.04M2,153.17M
Operating cash flow5,436.31M695.48M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Mar 2018Mar 2019Mar 2020
Revenue 26,383.31M 23,029.67M 23,890.39M 24,201.23M 22,545.59M
Gross Profit 11,213.91M 10,631.86M 10,293.14M 10,647.54M 10,832.72M
Operating income 5,600.76M 5,519.92M 4,188.53M 4,850.57M 4,990.90M
Income before tax 5,926.89M 5,727.51M 5,067.77M 5,622.36M 5,668.38M
Net income 4,172.28M 4,111.86M 3,671.49M 4,062.27M 4,094.33M
EBITDA 6,621.35M 6,556.00M 5,231.53M 5,814.77M 5,984.52M
Diluted EPS 0.31 0.32 0.29 0.32 0.32
Dividends Per Share 0.14 0.13 0.14 0.23 0.23
Total Assets 29,498.40M 30,355.71M 33,284.64M 34,852.31M 32,590.90M
Total liabilities 14,975.49M 16,609.98M 15,058.93M 16,830.40M 15,812.76M
Total equity 14,463.92M 13,690.26M 18,072.65M 17,907.98M 16,689.04M
Operating cash flow 6,101.49M 5,968.04M 6,265.04M 5,086.58M 5,436.31M
 Dec 2015Dec 2016Mar 2018Mar 2019Mar 2020
Revenue 3,403.16M 2,966.80M 3,059.21M 3,086.06M 2,884.31M
Gross Profit 1,446.47M 1,369.65M 1,318.05M 1,357.74M 1,385.85M
Operating income 722.43M 711.10M 536.35M 618.53M 638.49M
Income before tax 764.50M 737.84M 648.93M 716.94M 725.17M
Net income 538.18M 529.71M 470.14M 518.00M 523.79M
EBITDA 854.08M 844.57M 669.90M 741.48M 765.61M
Diluted EPS 0.04 0.04 0.03 0.04 0.04
Dividends Per Share 0.01 0.01 0.01 0.02 0.03
Total Assets 3,806.17M 3,915.27M 4,241.01M 4,439.81M 4,204.78M
Total liabilities 1,932.28M 2,142.35M 1,918.75M 2,144.01M 2,040.12M
Total equity 1,866.27M 1,765.76M 2,302.75M 2,281.28M 2,153.17M
Operating cash flow 787.02M 768.83M 802.25M 648.62M 695.48M

Valuation Measures

Mar 2020
PER17.05
ROA12.14%
ROE23.66%
Operating margin22.13%
Profit margin18.16%

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. (1.3%)
  • TSAI SHAO CHUNG (0.8%)
  • Ninety One UK Ltd. (0.6%)
  • BlackRock Fund Advisors (0.6%)
  • TAI WANG JUNG (0.6%)
  • TSAI WANG CHEN (0.6%)
  • Norges Bank Investment Management (0.5%)

Contact Details

Related Companies

  • Guangzhou Yong-Want Foods Ltd.
  • Longchang Want Want Foodstuff Co., Ltd.
  • Luohe Big-Want Foods Co., Ltd.
  • Want Want China Holdings Ltd. (Hong Kong)
  • Shijiazhuang Ming-Want Dairy Ltd.
  • Shandong Wantwant Foods Ltd.
  • Nanjing Big-Want Foods Ltd.
  • Shandong Xiang-Want Foods Ltd.
  • Guangzhou Ming-Want Dairy Ltd.
  • Beijing Dairy-Want Foods Co. Ltd.
  • Beijing Want Want Foods Co. Ltd.
  • Shandong Big-Want Foods Ltd.
  • Beijing Be-Want Foods Ltd.
  • Want Want China Finance Ltd.
  • Wellstand Enterprises Ltd.
  • Want Want Japan Co.
  • United Dragon Co. Ltd.
  • Beijing Ming-Want Foods Ltd.

Competitors

    Last Updated on 10 Jul, 2020

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