Foshan Haitian Flavouring (603288.SS)

Consumer · Shanghai · China

CN¥36.12+8.40% today

Fundamentals

Market capCN¥197.32B

P/E ratio27.0

Dividend yield3.14%

Revenue growth (YoY)+8.6%

Profit margin24.6%

Return on equity19.1%

52-week rangeCN¥31.60 to CN¥42.45

Valuation and ratings

DCF fair valueCN¥20.00

Upside to fair value-44.6%

Moat score75/100

Overall rating39/100, Reduce

Foshan Haitian Flavouring trades at CN¥36.12, which is 45% above the CN¥20.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 75 out of 100, which is a wide moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 27.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Foshan Haitian Flavouring

Foshan Haitian Flavouring and Food Company Ltd. engages in the production and sale of condiments, food and agricultural products, and beverages in China. The company offers soybean paste, soy sauce, flavoured sauce, oyster sauce, vinegar, cooking wine, and compound seasonings. It also engages in packaging materials and glass bottles packaging and catering services. The company exports its products worldwide. The company was founded in 1955 and is headquartered in Foshan, China. Foshan Haitian Flavouring and Food Company Ltd. operates as a subsidiary of Guangdong Haitian Group Co., Ltd.

Industry: Packaged FoodsEmployees: 9,160HQ: China

603288.SS passes 6 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Wide moat compounders

Businesses with a structural reason competitors cannot take their profits away. The rarest and most valuable thing in investing.

Dividend powerhouses

Yields above 3%, filtered for the one thing yield screens never check: whether the company can actually afford it.

Growing dividend payers

A modest yield attached to a growing business beats a large yield attached to a shrinking one, every time, over any horizon that matters.

Fortress balance sheets

Companies that owe almost nothing. They will survive things that kill their competitors, and they can buy the wreckage afterwards.

Low volatility defensives

Companies that move less than the market and pay you to wait. The holdings that let you sleep, and let you hold everything else.

Consumer staples

The companies that sell what people buy regardless of the economy. Dull, and dull is the entire point.

Common questions

Is Foshan Haitian Flavouring (603288.SS) undervalued?

Against our discounted cash flow estimate of CN¥20.00, 603288.SS at CN¥36.12 is 45% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is 603288.SS's P/E ratio?

603288.SS trades at 27.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Open 603288.SS in the app Free guides and screens

Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.