报告名称：China Foods(00506.HK)Earnings Improvement on Disposal of Inefficient Assets
报告类型：港股研究
报告日期：2016-06-24
研究机构：国泰君安国际
研究员：郭日升
股票名称：中国食品
股票代码：00506
页数：7
简介：Disposal of confectionery business was completed and China Foods is expected to record after-tax disposal gain of no less than HK$300 million in 1H16. The Company and Swire Pacific are negotiating with Coca Cola over acquiring bottling plants, and such a deal could be materialized in 2017. On the other hand, China Foods has put 55% equity interest in Junding Vineyard up for sale, it seems that the Company will be able to sell possibly at a discounted price. China Foods could save HK$30 million per annum by disposing of Junding Vineyard.
Coca Cola’s (China), Tingyi’s (beverage) and Changyu’s sales growth in 1Q16 was not satisfactory. Beverage and wine sales are expected to be weak in 1H16 but profitability in 2016 could remain flat YoY on stringent cost control. Kitchen food sales are helped by large-pack edible oil sales and we expect EBIT of such business in 2016 to improve YoY. Due to expected disposal gain, we revise up the Company’s EPS in 2016 by 15.8% but revise down 2017 EPS by 41.8% on lower sales.
We apply 17.0x, 16.0x and 8.5x (21%-27% discounts to corresponding peers) PER to valuate China Foods’ beverages, wine and kitchen food businesses earnings in 2017, respectively. Our sum-of-the-parts derived TP is HK$3.00 and we maintain the Company’s rating at “Accumulate”. The new TP represents 17.2x 2016 PER, 28.9x 2017 PER and 22.5x 2018 PER.

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