Want Want (0151) is mainly engaged in the production and sale of three major categories of products, including rice crackers, dairy and beverages and snack foods. It is well known in the food industry
Although the market faces a lot of competition, the Group continues to introduce new products, and Enhancing the product structure will help drive sales. The Group’s interim results were satisfactory. As of the end of September this year, the revenue was 9.305 billion yuan, up 0.6% year-on-year, operating profit rose 15.9% to 2.054 billion yuan, and net profit rose 18.4% to 1.615 billion yuan. The Group also increased its dividend payout of US$0.64 per share, an increase of 20.6% year-on-year.
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Benefiting from the optimization of product structure and the fall in the prices of bulk raw materials, the Group’s gross profit margin in the first half of the year increased by 4.4 percentage points year-on-year to 48.9%. The gross profit margin of the Group’s three major businesses recorded an increase. The gross profit margin of rice crackers rose by 4.1 percentage points to 43.1%, while that of dairy and beverages and snack foods rose by 4.1 percentage points and 4.6 percentage points to 51% and 48.7% respectively.
During the period, about 80% of the products were sold from wholesale channels, and at the same time, the development of Yuanhua’s sales channels, including e-commerce, maternal and child, vending machines, Wangzi theme stores and other emerging consumer channels
In the first half of FY 2019, the Group’s capital expenditure was 135 million yuan, which was used to increase the production plants and equipment of the three major categories of products, to update some of the old factories and production facilities and to meet the needs of future group growth. At the end of September this year, the balance of bank deposits was 16.636 billion yuan, the total borrowing was 10.336 billion yuan, the net cash was 6.301 billion yuan, and the net equity debt ratio was -0.45 times. In the trend, yesterday’s low opening and high, the “cancer” broke through upwards, weighing 10 days and 20 antennas, STC%K line rose above the %D line, MACD bear gap narrowed, can consider 6.5 yuan (HK$. The following absorption, if the big deal breaks through the resistance of 7.3 yuan, the uptrend is expected to continue, do not fall below 6.1 yuan continued to hold.