- Want Want China reported a net income of 1.72 billion yuan for the first half of the year, falling short of the estimated 1.95 billion yuan, representing a 7.8% decrease year-over-year.
- Company revenue was reported at 11.11 billion yuan, which is a 2.1% increase compared to the prior year, but slightly below the 11.22 billion yuan anticipated.
- The gross margin decreased to 46.2% from the previous year’s 47.3%, missing the estimated 46.8%.
- Capital expenditure significantly rose by 84% year-over-year, reaching 662.0 million yuan.
- The dairy products and beverages segment contributed approximately 53% to the total revenue, with a slight decline of 1.1% in revenue year-over-year.
- The rice crackers segment saw a modest revenue growth of 3.5% year-over-year, accounting for a significant portion of the company’s income.
- Revenue from snack foods surged by 7.7% compared to the same period in the previous financial year, indicating strong performance in this segment.
- Analyst recommendations include 11 buy ratings, 7 hold ratings, and 2 sell ratings.
A look at Want Want Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Want Want China Holdings Limited, a company that manufactures rice crackers, snack food, beverages, and packing materials primarily in China and Taiwan, has received a mixed outlook based on the Smartkarma Smart Scores. With a Growth score of 4 and a Resilience score of 4, the company seems to have favorable prospects for expanding its operations and withstanding economic challenges. However, its Value score of 2 indicates that the stock may not be considered undervalued. The Dividend and Momentum scores, both at 3, suggest moderate performance in terms of dividend payouts and market momentum.
In summary, Want Want shows potential for growth and resilience in the long term according to the Smartkarma Smart Scores. Despite being valued at a medium level and showing average momentum in the market, the company’s strong focus on growth and ability to weather uncertainties may position it well for future success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
