Want Want China Holdings Limited
SEHK-151
Company Overview
Want Want China Holdings Limited, an investment holding company, manufactures, distributes, and sells food and beverages. The company operates through four segments: Rice Crackers, Dairy Products and Beverages, Snack Foods, and Other Products. It offers sugar coated crackers, savoury crackers, fried crackers, and gift packs; flavored milk, room temperature yogurt, yogurt drinks, ready-to-drink coffee, juice and sports drinks, herbal tea, and milk powder; candies, popsicles, ball cakes and jellies, beans, nuts, and other snacks; and wine and other food products. The company also trades in food and beverages, and related activities online, as well as raw materials, machineries, etc.; sells chemical materials and plastic films/bags; manufactures and sells machineries and related services; manufactures dehydrating, deoxidating, preservative, and related products; manufactures and sells packaging materials, packing bags, carton boxes, and cans; provides consultancy, information, business, and network technology services; processes and sells rice and oil products; and manufactures and sells rice flour. It serves customers through a sales and distribution network primarily in the People's Republic of China. The company also exports its products to North America, East Asia, South East Asia, and Europe. Want Want China Holdings Limited was founded in 1962 and is headquartered in Kowloon Bay, Hong Kong.
Name
Want Want China Holdings Limited
CEO
Eng-Meng Tsai
Website
www.want-want.com
Sector
Food Products
Year Founded
1962
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Bulls Say
Want Want has developed a scalable offline channel network in China, which has enabled the vast distribution of its flagship products and maintained its brand awareness among Chinese consumers.
There is potential for Want Want to increase the sales contribution from overseas markets as it ramps up production capacity and leverages the Want Want brand.
All three sub-segments carry high levels of gross margin compared with industry peers, signifying the company’s ability to achieve both scale and profitability.
Bears Say
Want Want’s lower-than-industry-average online mix would be a hurdle for the company to stay compete when emerging brands penetrate the market with new offerings via this channel.
The company is overly reliant on a few lineups such as Hot-Kid milk and rice crackers, which could significantly dampen its profitability in the long term when consumer tastes shift away from these products.
The company’s cautious approach in managing its portfolio and channel structure could drag its responsiveness to changing market demand and impair its profit outlook.