Company Overview
HKFoods is a leading food manufacturer and distributor in Finland and Poland, specializing in meat, dairy, and bakery products. With a strong presence in both domestic and international markets, the company aims to provide high-quality products that meet the evolving needs of its customers.
The primary mission of HKFoods is to become a leader in the food industry by delivering innovative products, excellent customer service, and sustainable operations. The core values of the company are based on its commitment to quality, safety, and sustainability, as well as its dedication to building strong relationships with its customers, suppliers, and employees.
The company's product portfolio includes a range of meat, dairy, and bakery products, such as sausages, bacon, cheese, bread, and pastries. These products are designed to cater to the diverse needs of various customer segments, including food service providers, retailers, and consumers. The benefits of HKFoods products include their high quality, freshness, and convenience.
HKFoods operates in a competitive market, where it faces challenges such as changing consumer preferences, increasing competition from foreign players, and rising costs associated with raw materials and logistics. However, the company's strong brand reputation, efficient operations, and commitment to innovation position it well for long-term success.
Key Products/Services
HK Foods offers a range of meat, dairy, and bakery products that cater to various customer segments. Some of its key products include:
- Sausages: made from high-quality meat and seasonings, offering a convenient and flavorful solution for food service providers and consumers.
- Bacon: cured with natural ingredients and free from artificial additives, providing a healthier alternative to traditional bacon products.
- Cheese: sourced from local dairy farms and produced using traditional methods, ensuring a rich and creamy taste experience.
- Bread and pastries: baked fresh daily and made with high-quality ingredients, offering a delicious and convenient solution for food service providers and consumers.
The company's products are designed to meet the evolving needs of its customers, who value quality, convenience, and sustainability. By providing innovative products that cater to these needs, HK Foods aims to establish itself as a leader in the food industry.
Benefits
The benefits of HKFoods products include:
- High quality: sourced from local suppliers and produced using traditional methods, ensuring a rich and creamy taste experience.
- Convenience: designed to cater to the evolving needs of customers, offering a convenient solution for food service providers and consumers.
- Sustainability: committed to reducing its environmental impact through efficient operations and sustainable practices.
In addition to its products, HK Foods offers excellent customer service, efficient logistics, and a strong brand reputation. These factors contribute to the company's long-term success and position it well for growth in the competitive food industry.
Valuation
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Number of Shares (million) | 99.0 | 99.0 | 99.0 | 89.9 | 89.9 | 89.9 | 89.9 |
| Target Valuation (MEur) | 253.2 | 318.7 | 270.9 | 247.3 | 248.1 | 246.8 | 246.8 |
| Target Price | 2.56 | 3.22 | 2.74 | 2.75 | 2.76 | 2.74 | 2.74 |
| Potential, % | 194.4 | 286.8 | 254.6 | 85.8 | 72.4 | 71.5 | 71.5 |
| Recommendation | Buy | Buy | Buy | Buy | Buy | Buy | Buy |
| MCAP (MEur) | 86.0 | 82.4 | 76.4 | 133.1 | 143.9 | 143.9 | 143.9 |
| Price | 0.87 | 0.83 | 0.77 | 1.48 | 1.6 | 1.6 | 1.6 |
| EV | 433.0 | 370.0 | 226.0 | 275.0 | 285.0 | 261.0 | 225.0 |
| P/S | 0.04 | 0.09 | 0.08 | 0.13 | 0.14 | 0.13 | 0.13 |
| EV/S | 0.22 | 0.4 | 0.23 | 0.28 | 0.27 | 0.24 | 0.2 |
| EV/EBIT | -28.13 | 26.08 | 10.1 | 8.35 | 7.76 | 7.01 | 6.0 |
| P/E | -2.81 | -4.76 | -33.21 | 13.72 | 5.72 | 4.84 | 4.79 |
| P/B | 0.33 | 0.39 | 0.39 | 0.77 | 0.76 | 0.66 | 0.58 |
| P/OCF | 4.55 | 1.63 | 1.26 | 2.62 | 4.16 | 3.05 | 2.46 |
| EV/OCF | 22.92 | 7.3 | 3.72 | 5.41 | 8.22 | 5.52 | 3.84 |
| P/FCF | -3.94 | 1.12 | 0.54 | 3.71 | 11.15 | 6.0 | 4.06 |
| EV/FCF | -19.87 | 5.05 | 1.6 | 7.66 | 22.06 | 10.87 | 6.36 |
Income Statement
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Revenue | 1977.3 | 933.0 | 1001.8 | 996.5 | 1041.1 | 1093.4 | 1102.6 |
| Rev. Growth, % | 11.6 | -52.8 | 7.4 | -0.5 | 4.5 | 5.0 | 0.8 |
| Ebit | -15.4 | 14.2 | 22.4 | 32.9 | 36.7 | 37.2 | 37.5 |
| Ebit Growth, % | -170.6 | 192.2 | 57.7 | 46.9 | 11.6 | 1.4 | 0.8 |
| Ebit, % | -0.8 | 1.5 | 2.2 | 3.3 | 3.5 | 3.4 | 3.4 |
| Profit | -30.6 | -17.3 | -2.3 | 9.7 | 25.2 | 29.7 | 30.0 |
| EPS | -0.31 | -0.17 | -0.02 | 0.11 | 0.28 | 0.33 | 0.33 |
| Profit Growth, % | -1192.9 | 43.5 | 86.7 | 521.7 | 159.8 | 17.9 | 1.0 |
| Profit, % | -1.5 | -1.9 | -0.2 | 1.0 | 2.4 | 2.7 | 2.7 |
Balance Sheet
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Inventory | 115.9 | 75.2 | 59.6 | 63.1 | 70.3 | 67.9 | 66.2 |
| Acc. Receivable | 155.5 | 97.3 | 80.3 | 58.1 | 61.6 | 61.1 | 61.0 |
| Cash | 17.8 | 29.0 | 36.7 | 51.1 | 44.7 | 68.7 | 104.1 |
| Equity | 259.6 | 212.1 | 195.4 | 173.8 | 189.5 | 219.3 | 249.3 |
| ROE, % | -11.8 | -8.2 | -1.2 | 5.6 | 13.3 | 13.5 | 12.0 |
| ROCE, % | -2.5 | 2.7 | 5.9 | 9.0 | 9.8 | 9.2 | 8.6 |
| Net Debt | 347.2 | 287.9 | 149.8 | 141.8 | 140.7 | 116.7 | 81.3 |
| Gearing, % | 133.7 | 135.7 | 76.7 | 81.6 | 74.2 | 53.2 | 32.6 |
| Equity ratio, % | 26.8 | 24.9 | 37.0 | 33.9 | 36.6 | 41.6 | 46.3 |
| Acc. Payable | 243.3 | 161.5 | 120.4 | 120.2 | 103.4 | 96.0 | 95.5 |
| Total Assets | 968.1 | 851.7 | 527.7 | 512.6 | 518.1 | 527.3 | 538.0 |
| ROA, % | -3.2 | -2.0 | -0.4 | 1.9 | 4.9 | 5.6 | 5.6 |
Cash Flow
| 2022 | 2023 | 2024 | 2025 | 2026 (e) | 2027 (e) | 2028 (e) | |
|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 18.9 | 50.7 | 60.8 | 50.8 | 34.6 | 47.2 | 58.6 |
| Investment Cash Flow | -40.7 | 22.6 | 80.8 | -14.9 | -21.7 | -23.2 | -23.2 |
| Free Cash Flow | -21.8 | 73.3 | 141.6 | 35.9 | 12.9 | 24.0 | 35.4 |
| OCF/CAPEX | 0.46 | 0.0 | 0.0 | 3.41 | 1.59 | 2.03 | 2.53 |
| Financial Cash Flow | 14.5 | -62.0 | -134.3 | -21.7 | -19.2 | 0.0 | 0.0 |
Disclaimer
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