Vitasoy International 0345

[winston]

not vested

Vitasoy’s shares slide 10 per cent in the wake of profit warning sparked by incendiary stabbing incident

Vitasoy sparked a political storm this year after an internal memo expressed condolences to the family of an employee who stabbed a policeman, then himself

Analysts say investors need to take a longer view on the stock, wait for an improvement in sociopolitical conditions

The company warned that its operating profit for the six months to September 30 could fall between 91 per cent and 107 per cent from the same period a year ago.

China accounts for about two-thirds of Vitasoy’s revenue.

by Bobo Chan

Source: SCMP

https://www.scmp.com/business/companies ... ng-sparked

[winston]

not vested

Vitasoy net plunges 95pc in wake of mainland boycott

by Victor Zhong

Revenue slid 18 percent to HK$3.60 billion year on year for the six months ended September 30, of which mainland revenues, which took up 62 percent of the total, dropped 28 percent to HK$2.27 billion, or 35 percent in local currency.

The mainland unit recorded a loss of HK$32.58 million for the first half, compared to a profit of HK$742.62 million last year.

Sales are forecast to improve as products have been back on the shelves since end-September and advertising campaigns are restarting.

Source: The Standard

https://www.thestandard.com.hk/section- ... nd-boycott

[winston]

not vested

VITASOY INT'L: CN Sales Revival Momentum Continues in Oct-Nov

VITASOY INT'L (00345.HK) 's China sales were significantly undermined during the peak summer vacation season, given the lack of full product commercialization and advertising inputs in most of the July-September period, said Group CEO Roberto Guidetti at the result teleconference.

However, the group put the goods back on shelves in September, leading to a certain degree of sales revival channel-wise following Mid-Autumn Festival, National Day holiday and school opening.

Such momentum seemed to run on in October and November, Guidetti added.

VITASOY INT'L announced the interim result ended September 2021. The net profit amounted to HK$32.804 million, down 95.1% year on year.

Source: AAStocks Financial News

[winston]

not vested

Vitasoy International (345 HK): <Results First Take> 1H21 results in-line with profit warning [HOLD, TP HK$20.50]

Vitasoy released 1H21 results in-line with earlier profit warning

Net earnings declined 95% to HK$33m, in view of a plunge in China sales (-29% y-o-y), while most markets reported growth y-o-y

Gross profit margin contracted 7ppts to 48%, while EBITDA margin contracted 17ppts to 9%.

Our last rating was a HOLD with TP at HK$20.5

Source: DBS

[winston]

not vested

November 25, 2021

Hong Kong drink maker struggles to recover from China boycott

Vitasoy profits plunge 94% on loss of soymilk producer's biggest market

Vitasoy sales gains in Hong Kong, Australia, New Zealand and Singapore failed to offset its losses in mainland China.

by PAK YIU

Revenues in China or the six months ended Sept. 30, fell 28.2% to 2.23 billion Hong Kong dollars ($286.03 million).

Source: Nikkei

https://asia.nikkei.com/Business/Food-B ... na-boycott

[winston]

Aug 07, 2021

Vitasoy sparks renewed public anger for blaming mainland consumers for profit loss, not reflecting upon own misdeeds

Chinese netizens questioned the statement, saying that it was phrased in such an improper way that it didn't mention the company's previous inappropriate remarks, serving to pass the buck to others.

Many Sina Weibo users said they would continue avoiding Vitasoy products as the company apparently lacks sincerity toward mainland consumers.

Source: Global Times

https://www.globaltimes.cn/page/202108/1230816.shtml

[winston]

not vested

VITASOY INT`L(345)

Analysis：

For the six months ended 30th September 2021, Vitasoy（0345）revenue in the interim period declined by 18%.

While operations in Hong Kong, Australia/New Zealand and Singapore grew steadily despite persistent COVID-19 limitations, Mainland sales and profits were severely impacted by the sales disruption.

Profit from operations dropped by 95%, as a result of the fall in Mainland China sales, exacerbated by the reduction of pandemic related subsidies from governments as COVID-19 was gradually brought under control, and the return to advertising and promotion spending versus the previous year, during which such spending had been reduced due to the pandemic.

China's revenue shortfall during the peak summer months has significantly impacted business performance.

Despite the profit attributable to equity shareholders decreased by 95%, Vitasoy has implemented a comprehensive program to accelerate the sales recovery in Mainland China whilst continuing to fuel success in the other growing markets.

Management expects Mainland China to regain momentum from new product launches, enhanced sales execution followed by a return to profitable growth in the next Fiscal Year.

Strategy：
Buy-in Price: $13.10, Target Price: $14.40, Cut Loss Price: $12.20

Source: Phillips

[winston]

not vested

Vitasoy stares at $172m loss

Vitasoy International (0345) said it expects to record a loss of up to HK$172 million for the financial year ended March compared to a profit of HK$548.3 million a year ago, but will recover this year.

The forecasted loss ranging from HK$151 million to HK$172 million was due to a significant decline in sales in China during the peak summer months and a 91 percent decrease in government Covid relief and subsidies, as well as substantial non-recurring expenses and impairment costs associated with the relocation of the Shenzhen operation to a modern facility in Dongguan.

The soymilk maker said in a filing yesterday that the decline in profit for the second half of the financial year has narrowed compared to the first half, and expects to maintain its recovery in sales and restore year-on-year growth in profit for the financial year of 2022/23.

It plans to achieve the target through robust product innovation, advertising, and promotion investments, effective go-to-market execution and sales, as well as enhanced communications with consumers.

Vitasoy said in addition to a strong comeback in sales in China, all the other operating units - Hong Kong, Australia and New Zealand and Singapore - have delivered revenue growth for the full financial year behind the steady performance of both core businesses and innovation products.

Source: The Standard

https://www.thestandard.com.hk/section- ... $172m-loss

[winston]

not vested

Vitasoy (345.HK): Profit warning unsurprising – Neutral [HOLD: TP: HK$18.40]

Vitasoy (345.HK) released a profit warning, expecting to post an attributable loss of HK$151-HK$172m

The profit warning is not too surprising considering the sharp plunge of 95% earnings in 1HFY22.

Indicative loss in 2HFY22 is translated to HK$118m-139m, similar to losses incurred of HK$123m in 2HFY21

Aside from profit warning, revenue trend is in-line as China sales recovered in 2HFY22. Other markets also maintained positive growth

Retain HOLD with TP at HK$18.4

Source: DBS

[winston]

not vested

Vitasoy goes on branding evolution drive in Hong Kong

by REZWANA MANJUR

The “Planting goodness every day” campaign visualised Vitasoy’s brand personality to showcase its portfolio of plant-based products, from its most iconic range of Vitasoy classic products to its functional line of Calci-Plus range, to its latest new product, VitaOat.

Repercussions from customers in China against the company, including the removal of Vitasoy's products from the shelves in various sales channels across China for the entire month.

Source: Marketing Interactive

https://www.marketing-interactive.com/v ... -hong-kong