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 2020	HKD	USD
Revenue	22,545.59M	2,884.31M
Gross Profit	10,832.72M	1,385.85M
Operating income	4,990.90M	638.49M
Income before tax	5,668.38M	725.17M
Net income	4,094.33M	523.79M
EBITDA	5,984.52M	765.61M
Diluted EPS	0.32	0.04
Dividends Per Share	0.23	0.03
Total Assets	32,590.90M	4,204.78M
Total liabilities	15,812.76M	2,040.12M
Total equity	16,689.04M	2,153.17M
Operating cash flow	5,436.31M	695.48M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2015	Dec 2016	Mar 2018	Mar 2019	Mar 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 2015	Dec 2016	Mar 2018	Mar 2019	Mar 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
PER	17.05
ROA	12.14%
ROE	23.66%
Operating margin	22.13%
Profit margin	18.16%

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

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

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Competitors

Last Updated on 10 Jul, 2020