* Q4 net profit $14.92 mln vs forecast of $45.37 mln
* 2012 net profit $455 mln vs forecast of $486 mln
* Tingyi shares outpaced benchmark before results statement
HONG KONG, March 18 China's Tingyi (Cayman
Islands) Holding Corp, a maker of drinks and instant
noodles, said fourth-quarter profit slid 75 percent as consumers
shied away from its Japanese-style packaging and marketing amid
a territorial row between the two countries.
Tingyi, which has a broad-ranging partnership with PepsiCo
Inc and sells noodles under the Master Kong brand in
China, said its net profit was $14.9 million for the three
months ended in December, down from $59.9 million in the same
period a year earlier.
That compared with a consensus forecast of $45.37 mln,
according to Thomson Reuters Starmine SmartEstimate.
Japanese-style noodle restaurant chain operator Ajisen
(China) Holdings Ltd posted a fall of almost 56
percent in 2012 profit as its sales were also hit by
Although anti-Japanese sentiment has been calmed down
somewhat since the worst of the protests last year, the problem
still hangs over relations between the two countries. Toyota
Motor Corp said combined January-February sales for
China were down 13 percent from the same period a year earlier.
Hong Kong-listed Tingyi is more than 33 percent controlled
by Ting Hsin (Cayman Islands) Holding Corporation.
Tingyi said its profit for 2012 rose 8.5 percent to its
$455.2 million, its second-highest annual result ever. But that
lagged market expectations of $485.65 million, according to
Thomson Reuters Starmine SmartEstimate.
By contrast, rival Want Want China Holdings Ltd,
the country's top food and beverage maker and distributor by
market value and which did not have to deal with anti-Japan
sentiment, this month posted a 32 percent rise in 2012 net
profit to a record $553.8 million, largely due to softer raw
Tingyi, which also competes with smaller rival Uni-President
China Holdings Ltd, said its turnover was $9.21
billion for 2012, up from $7.87 billion a year ago. Its gross
margin was 29.9 percent, compared with 26.54 percent a year
Tingyi, which commands just over half of China's $8.8
billion instant noodle market, has benefited as demand for
consumer staples climbed, raw material costs fell and greater
production efficiency at its bottling plants.
Tingyi's bond yields have halved since their issue in June
2012, giving it a relatively strong credit position with not
much debt to refinance. Credit analysts expect steady EBITDA
margins at 35 percent with only small net debt at the year-end.
Gross leverage is seen around 1.5 times.
Prior to the earnings release, shares of Tingyi were up 1.9
percent on Monday, outpeforming a 2 percent decline for the
benchmark Hang Seng Index.