Why has Tingyi Holding recently become stronger? How do institutions evaluate this company?
On July 5th, Caixin reported (edited by Hu Jiarong) that Tingyi Holdings (00322.HK) has seen a continuous rise in its stock price recently. After accumulating a 6.71% increase in four consecutive days, the stock surged again today. As of the time of publication, it rose 3.19%, to 10.34 Hong Kong dollars.
Note: The trend of Tingyi Holdings
In terms of news, southbound funds have once again increased their shareholding of 2.3164 million shares in Tingyi Holdings yesterday, and have been increasing their shareholding for three consecutive days. As of the day of closing, the Hong Kong Stock Connect holds a total of 0.146 billion shares of Tingyi Holdings.
Note: The performance of southbound funds recently
In addition to the continued bullishness of southbound funds, news of a price increase by Tingyi Holdings has once sparked heated discussion. According to previous reports, multiple channels have confirmed the price hike. "At present, (factory personnel) have verbally informed, but have not received formal notice." A Tingyi channel insider revealed that the ex-factory price of classic barrel-shaped Tingyi noodles is expected to increase by 0.5 yuan per barrel to about 4 yuan per barrel, an increase of about 14%; the suggested retail price is expected to also rise to around 5 yuan per barrel.
Institutions say high dividend targets have stable growth
Haitong International emphasized in its latest research report that as a leader in the instant noodles and soft drinks industry, Tingyi Holdings is expected to steadily increase its profitability in 2024. The company's product price hike has a positive impact on performance, while raw material costs and expense inputs remain within a controllable range.
The bank pointed out that as a high dividend stock, Tingyi Holdings' dividend security is strong and has maintained a 100% cash dividend ratio for many years. The cash dividend ratio from 2020 to 2023 is 100%, 166%, 198% and 100% respectively. Based on the 100% dividend payment policy in 2023, the company's latest annual dividend yield has reached 6.2%, which is at a leading level among consumer stocks in the Hong Kong stock market.
They predict that Tingyi Holdings will continue to maintain a high dividend rate in the future, with net income expected to reach 3.34 billion yuan in 2024, a year-on-year increase of 7.0%. If the company continues to maintain a dividend rate of over 100%, the expected dividend yield based on the current market capitalization will reach 6.6%.
J.P. Morgan also pointed out recently that with the improvement of consumer sentiment and the promotion of summer demand, sales are expected to gradually recover in the second half of the year. J.P. Morgan believes that Tingyi Holdings will maintain a dividend payout ratio of 100% and the expected dividend yield will reach 7.5%, which is highly attractive.