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DaChan Food Asia Ltd (3999) Fair Value & Analysis

Consumer Defensive · HK · Market cap HK$569M

DF DaChan Food Asia Ltd 3999 · HK
PriceHK$0.5500
Fair ValueHK$1.20
Upside+118.2%
Quality56/100
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Weak Growth
Thin margins · 0.2% net margin
Low debt · generates free cash flow
Mixed vs. peers (6/12)
Narrow moat 18/100
Evidence: Medium Range HK$0.9200 – HK$1.49 Share as image

Fair value as of: Aug 13, 2026

From 16 valuation models · updated 3 days ago

Share price −1.8% over the past month.

A solid business, screening 118% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$0.9200). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$0.9600 HK$0.4000 Fair Value HK$1.20 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.4000 – HK$0.9600 · fair‑value band HK$0.9200 – HK$1.49 · the HK$0.5500 price screens below the HK$1.20 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

DaChan Food Asia Ltd (3999) currently trades at HK$0.5500, while our model-based Fair Value estimate is HK$1.20, implying the stock looks roughly 118.2% undervalued today. The Quality Score stands at 56/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, DaChan Food Asia Ltd generated revenue of HK$6.0B at a net margin of 0.2%. Revenue declined 2.0% year over year. It earns a return on equity of 1.6%. The balance sheet holds a net cash position of HK$64.2M. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.9200 (bear case) to HK$1.49 (bull case); at HK$0.5500, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 21% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -14% fair-value upside, at 118%, 3999 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$1.97 HK$2.44 HK$3.01 80
Rev-Margin DCF HK$1.27 HK$1.56 HK$1.89 74
ROIC Compounder HK$0.5900 HK$0.6400 HK$0.6700 72
All 16 models by family
DCF Models
FCF DCF HK$1.94 HK$2.45 HK$3.09 38
Owner Earnings HK$0.6500 HK$0.7500 HK$0.8900 31
5Y Revenue Exit HK$1.27 HK$1.53 HK$1.83 39
5Y EBITDA Exit HK$2.26 HK$3.26 HK$4.37 41
10Y Revenue Exit HK$1.53 HK$1.80 HK$2.08 36
10Y EBITDA Exit HK$2.11 HK$2.85 HK$3.73 37
Earnings-Based
EPV HK$0.5900 HK$0.6400 HK$0.6700 59
Dividend Discount
Gordon GGM HK$0.3600 HK$0.4900 HK$0.6100 70
DDM Multi-Stage HK$0.3600 HK$0.4800 HK$0.6000 61
Multiples
EV/EBIT HK$1.03 HK$1.28 HK$1.52 53
EV/EBITDA HK$2.84 HK$3.68 HK$4.53 54
EV/Revenue HK$0.8200 HK$1.05 HK$1.27 43
Asset-Based
NCAV (Graham) HK$1.07 HK$1.43 HK$2.14 50
Growth DCF
Growth DCF HK$1.97 HK$2.44 HK$3.01 80
Rev-Margin DCF HK$1.27 HK$1.56 HK$1.89 74
Economic Profit
ROIC Compounder HK$0.5900 HK$0.6400 HK$0.6700 72

Widest divergence: DCF Models (HK$1.80) versus Dividend Discount (HK$0.4800). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$6.0B
Revenue growth (YoY) -2.0%
Net margin 0.2%
Return on equity 1.6%
Free cash flow HK$192M FY2025
Operating margin 1.4%
More key figures
EPS (TTM) HK$0.0182
EPS growth (YoY) -35.5%
Net cash HK$64.2M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 56 · Market factors (momentum, volatility) 36

Profitability 36
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 30
Earnings quality: real cash, not paper profit
Fin. Strength 68
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 27
Price trend over the last 3–12 months (market factor)
52W Momentum 28
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

DaChan Food (Asia) Limited, together with its subsidiaries, manufactures and sells livestock feeds, poultry and chilled meats, and processed foods in the People's Republic of China, Japan, and rest of the Asia Pacific. It operates through Processed Food, Livestock Feeds, and Chicken Meat segments.

Full company description

DaChan Food (Asia) Limited, together with its subsidiaries, manufactures and sells livestock feeds, poultry and chilled meats, and processed foods in the People's Republic of China, Japan, and rest of the Asia Pacific. It operates through Processed Food, Livestock Feeds, and Chicken Meat segments. The company produces and distributes pickled, pre-fried, and instant foods; and feed, base mixes, and pre-mixes for swine, layer, broiler, duck, and breeder poultry under the Dr. Nupak, DaChan, and Green Knight brands. It also engages in broiler farming, broiler breeder eggs hatching, and contract farming activities; and processing and marketing chilled and frozen chicken meat under the DaChan and Sisters' Kitchen brands. In addition, the company is involved in the husbandry and trading; research and development; consultancy; and poultry farms construction and leasing, and swine raising and selling activities. DaChan Food (Asia) Limited was incorporated in 2007 and is based in Beijing, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

DaChan Food Asia Ltd reported revenue of HK$6.0B in FY2025 versus HK$6.5B in FY2021, a compound −2.1%/yr. Reported net income was −HK$1.6M in FY2025.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$6.0B
Latest YoY
+2.9%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.5%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.4%
Revenue −2.1%/yr
FY21 HK$6.5B
FY22 HK$6.2B
FY23 HK$6.4B
FY24 HK$5.8B
FY25 HK$6.0B
Net income
FY21 HK$155M
FY22 HK$91.9M
FY23 HK$47.0M
FY24 HK$58.8M
FY25 −HK$1.6M

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Cite: Fair Value Calculator (2026). "DaChan Food Asia Ltd Fair Value". https://www.fairvalue-calculator.com/stock/3999

Peer Group

Packaged Foods · 652 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 56 · Above median
Fair Value upside +118% · Top 25%
Return on equity (TTM) 2% · Below median
Return on assets 2% · Below median
Net margin (TTM) 0% · Below median
Operating margin (TTM) 1% · Bottom 25%
Revenue growth -2% · Below median
Dividend yield (TTM) 8.2% · Top 25%
Debt / equity 0.11× · Higher than median

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/S (TTM) 0.01× · Cheaper than 75% of peers
P/FCF 0.4× · Cheaper than median
PEG 0.12× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 23
FUTURE 0 · sector 19
PAST 7 · sector 28
HEALTH 95 · sector 96
DIVIDEND 100 · sector 55

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Nestlé India Limited NESTLEIND ₹1,507 ₹362.37 -76%
Britannia Industries Limited BRITANNIA ₹5,646 ₹1,870 -67%
Tata Consumer Products Limited TATACONSUM ₹1,062 ₹327.27 -69%
PT Indofood CBP Sukses Makmur Tbk ICBP 7,550 IDR 12,864 IDR +70%
Samyang Foods Co 003230 1,219,000 KRW 1,010,543 KRW -17%
Patanjali Foods Limited PATANJALI ₹352.60 ₹144.77 -59%
Vietnam Dairy Products Joint Stock Company VNM 61,600 VND 52,858 VND -14%
PT Mayora Indah Tbk, MYOR 1,665 IDR 2,699 IDR +62%
PT Cisarua Mountain Dairy Tbk CMRY 4,630 IDR 4,350 IDR -6%
Nongshim Co 004370 389,500 KRW 530,619 KRW +36%

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Frequently asked questions

Is DaChan Food Asia Ltd (3999) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$1.20 versus a price of HK$0.5500, about +118% (undervalued).
What is the fair value of 3999?
Our model-based fair value for DaChan Food Asia Ltd is HK$1.20 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.5500.
What is the quality score of 3999?
DaChan Food Asia Ltd has a Quality Score of 56/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of DaChan Food Asia Ltd (3999)?
DaChan Food Asia Ltd reported trailing-twelve-month revenue of about HK$6.0B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 3999?
The net profit margin of DaChan Food Asia Ltd is about 0.2%, meaning it keeps roughly 0.2% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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