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Sichuan Baicha Baidao Industrial Co Ltd
HKEX:2555

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Sichuan Baicha Baidao Industrial Co Ltd
HKEX:2555
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Price: 6.36 HKD -1.24% Market Closed
Market Cap: HK$9.4B

P/OCF

14.4
Current
13%
Cheaper
vs 3-y average of 16.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
14.4
=
Market Cap
HK$9.5B
/
Operating Cash Flow
¥570.5m

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
14.4
=
Market Cap
HK$9.5B
/
Operating Cash Flow
¥570.5m

Valuation Scenarios

Sichuan Baicha Baidao Industrial Co Ltd is trading below its 3-year average

If P/OCF returns to its 3-Year Average (16.5), the stock would be worth HK$7.29 (15% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-17%
Maximum Upside
+27%
Average Upside
10%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 14.4 HK$6.36
0%
3-Year Average 16.5 HK$7.29
+15%
5-Year Average 16.5 HK$7.29
+15%
Industry Average 11.9 HK$5.26
-17%
Country Average 18.3 HK$8.09
+27%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
CN
Sichuan Baicha Baidao Industrial Co Ltd
HKEX:2555
9.4B HKD 14.4 14.6
US
McDonald's Corp
NYSE:MCD
213.2B USD 20.2 24.9
US
Starbucks Corp
NASDAQ:SBUX
112.4B USD 28.6 82.1
UK
Compass Group PLC
LSE:CPG
47.7B GBP 0.2 0.3
US
Yum! Brands Inc
NYSE:YUM
44.4B USD 22.1 28.5
US
Chipotle Mexican Grill Inc
NYSE:CMG
44.6B USD 21.1 29.1
CA
Restaurant Brands International Inc
NYSE:QSR
28B USD 17.9 36.1
IN
Eternal Ltd
NSE:ETERNAL
2.4T INR -3 087.2 1 002.3
US
Darden Restaurants Inc
NYSE:DRI
23.1B USD 13.3 20.9
CN
Yum China Holdings Inc
NYSE:YUMC
17.3B USD 11.8 18.6

Market Distribution

In line with most companies in China
Percentile
41st
Based on 6 232 companies
41st percentile
14.4
Low
0.2 — 9.8
Typical Range
9.8 — 36.5
High
36.5 —
Distribution Statistics
China
Min 0.2
30th Percentile 9.8
Median 18.3
70th Percentile 36.5
Max 266 666.7

Sichuan Baicha Baidao Industrial Co Ltd
Glance View

In the dynamic landscape of China’s fast-moving consumer goods market, Sichuan Baicha Baidao Industrial Co Ltd stands out as a pivotal player. Emerging from the culturally rich province of Sichuan, the company has etched a prominent spot in the premium packaged beverage industry. A brainchild born from the traditional roots of Chinese tea culture, Baicha Baidao crafts products that are a harmonious blend of age-old tea recipes and modern manufacturing processes. The company has meticulously capitalized on the increasing consumer awareness towards health and wellness, channeling this trend into its diverse product range that includes a variety of teas, herbal infusions, and other beverages. By not only focusing on product quality but also on engaging storytelling around the traditions and benefits of tea, Baicha Baidao has managed to create a strong brand identity and consumer loyalty. Baicha Baidao's business acumen is reflected in its supply chain and distribution strategy, which leverages both traditional retail and innovative online platforms to reach a broad audience, from local domestic markets to growing international territories. The company has invested heavily in building an efficient distribution network, ensuring its products maintain their allure and quality upon reaching diverse customer bases. Moreover, partnerships with e-commerce giants have facilitated a wider reach, capitalizing on China's digitally savvy consumer base. Revenue streams flow fervently through sales of its high-quality packaged teas, capturing significant market share by positioning their offerings as premium products. This pricing strategy, aligned with an emphasis on sustainability and authenticity, has helped the company carve out a niche that transforms traditional tea drinking into a contemporary lifestyle choice for many.

Intrinsic Value
14.49 HKD
Undervaluation 56%
Intrinsic Value
Price HK$6.36
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