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Consumer Non-Durables

Want Want China Holdings Ltd.

  • 6.10 HKD
  • +0.27
  • +4.63%
  • China
    Aug 15, 2018
  • Ticker
    HKG(151)
  • Prev. close
    5.83
  • Market cap (HKD)
    72,579.34M
  • Market cap (USD)
    9,245.83M
  • Shares
    12,449.28M

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 2018 HKDUSD
Revenue23,890.39M3,059.21M
Gross Profit10,293.14M1,318.05M
Operating income4,188.53M536.35M
Income before tax5,067.77M648.93M
Net income3,671.49M470.14M
EBITDA5,231.53M669.90M
Diluted EPS0.290.03
Dividends Per Share0.140.01
Total Assets33,284.64M4,241.01M
Total liabilities15,058.93M1,918.75M
Total equity18,072.65M2,302.75M
Operating cash flow----
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Mar 2018
Revenue 29,612.61M 29,276.54M 26,383.31M 23,029.67M 23,890.39M
Gross Profit 12,065.68M 11,504.24M 11,213.91M 10,631.86M 10,293.14M
Operating income 6,674.02M 5,552.90M 5,600.76M 5,519.92M 4,188.53M
Income before tax 7,229.93M 6,436.89M 5,926.89M 5,727.51M 5,067.77M
Net income 5,331.26M 4,811.81M 4,172.28M 4,111.86M 3,671.49M
EBITDA 7,468.10M 6,469.79M 6,621.35M 6,556.00M 5,231.53M
Diluted EPS 0.40 0.36 0.31 0.32 0.29
Dividends Per Share 0.26 0.18 0.14 0.13 0.14
Total Assets 33,714.01M 33,219.88M 29,498.40M 30,355.71M 33,284.64M
Total liabilities 18,576.93M 17,261.90M 14,975.49M 16,609.98M 15,058.93M
Total equity 15,068.35M 15,897.51M 14,463.92M 13,690.26M 18,072.65M
Operating cash flow 7,392.14M 2,297.18M 6,101.49M 5,968.04M --
 Dec 2013Dec 2014Dec 2015Dec 2016Mar 2018
Revenue 3,817.71M 3,775.33M 3,403.16M 2,966.80M 3,059.21M
Gross Profit 1,555.52M 1,483.52M 1,446.47M 1,369.65M 1,318.05M
Operating income 860.42M 716.07M 722.43M 711.10M 536.35M
Income before tax 932.09M 830.06M 764.50M 737.84M 648.93M
Net income 687.31M 620.50M 538.18M 529.71M 470.14M
EBITDA 962.80M 834.30M 854.08M 844.57M 669.90M
Diluted EPS 0.05 0.04 0.04 0.04 0.03
Dividends Per Share 0.03 0.02 0.01 0.01 0.01
Total Assets 4,348.09M 4,283.75M 3,806.17M 3,915.27M 4,241.01M
Total liabilities 2,395.86M 2,225.95M 1,932.28M 2,142.35M 1,918.75M
Total equity 1,943.36M 2,050.00M 1,866.27M 1,765.76M 2,302.75M
Operating cash flow 953.00M 296.23M 787.02M 768.83M --

Valuation Measures

Mar 2018
PER21.40
ROA11.53%
ROE23.11%
Operating margin17.53%
Profit margin15.36%

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 (49.3%)
  • Iwatsuka Confectionery Co., Ltd. (4.8%)
  • CHENG WEN HSIEN (3.7%)
  • OppenheimerFunds, Inc. (1.7%)
  • The Vanguard Group, Inc. (1.1%)
  • TSAI WANG CHIA (0.8%)
  • BlackRock Fund Advisors (0.8%)
  • TSAI SHAO CHUNG (0.8%)
  • TSAI ENG MENG FAMILY (0.7%)
  • Norges Bank Investment Management (0.6%)

Contact Details

Related Companies

  • 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 15 Aug, 2018

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