Latest news for Nissin Foods (OTC:NSFCF) Stock

Nissin Foods Co Ltd is a Hong Kong-based company. The company produces and sells instant noodles, frozen food, retort foods, beverage products, and snacks in Hong Kong and China. It sells its products under the brand names NISSIN, DOLL, Cup Noodles, Doll Instant Noodle, and Fuku. The company's operating segments include HK Operations and PRC operations. It derives a majority of its revenue from the PRC operations segment.

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Key Takeaways:


	Nissin Foods is purchasing Australian frozen dumpling maker ABC Pastry for $23.3 million, seeking to tap demand from the country’s growing Asian population
	Nissin is looking to diversify geographically from its base in Mainland China and Hong Kong with other recent moves into Vietnam and Taiwan




Nissin Foods Looks &#39;Down Under&#39; To Escape China Pressure Cooker

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MDAI

Spectrum AI shares are trading higher after the company provided updates on operating results and anticipates annual revenue exceeding its guidance estimate.

Susquehanna analyst Mehdi Hosseini maintains Seagate Tech Hldgs (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STX#NASDAQ">STX</a>) with a Negative and raises the price target from $65 to $68.

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Susquehanna Maintains Negative on Seagate Tech Hldgs, Raises Price Target to $68

Textron Inc&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TXT#NYSE">TXT</a>) shares are trading lower after the company <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43122702/textron-reports-fourth-quarter-2024-results-announces-2025-financial-outlook" rel="noreferrer noopener">reported&nbsp;fourth-quarter&nbsp;results</a>.
Sales grew to&nbsp;$3.613 billion, missing the consensus of&nbsp;$3.81 billion, although adjusted EPS of&nbsp;$1.34 was <a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">in line with the consensus</a>.
Textron Aviation&#8217;s revenues stood at&nbsp;$1.3&nbsp;billion, down&nbsp;$242&nbsp;million&nbsp;year-over-year on lower volume and mix of&nbsp;$282&nbsp;million. Textron Aviation&#8217;s backlog came in at&nbsp;$7.8&nbsp;billion.&nbsp;
Bell revenues stood at $1.1 billion, up&nbsp;$58&nbsp;million&nbsp;Y/Y, on higher military and support program revenues of $67 million mainly led by higher volume on the FLRAA program. Bell backlog stood at&nbsp;$7.5 billion.
Industrial revenues stood at&nbsp;$869&nbsp;million&nbsp;(down $92 million&nbsp;Y/Y), owing to lower volume.
For FY24, the operating cash flow of the manufacturing group was&nbsp;$1.0 billion. As of December 28, cash and cash equivalents stood at&nbsp;$1.39 billion.
In the fourth quarter, Textron repurchased shares worth $232 million, resulting in 2024 share repurchases of $1.1 billion.
In December, Textron disclosed a strategic review of its powersports product line within the Industrial segment, leading to the indefinite suspension of production.
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Consequently, the company recorded total pre-tax special charges of $53 million and a $38 million inventory valuation charge in the fourth quarter to write down powersports-related inventory.
FY25&nbsp;Outlook:&nbsp;Textron expects GAAP EPS from continuing operations of&nbsp;$5.19-$5.39&nbsp;or&nbsp;$6.00 -$6.20&nbsp;on an adjusted basis (vs. consensus of&nbsp;$6.42) and revenue of&nbsp;$14.7 billion<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener"> (vs.&nbsp;$14.757 billion&nbsp;estimate)</a>.
Textron projects cash flow from continuing operations of the manufacturing group of&nbsp;$1.2 billion and $1.3 billion.
Scott C. Donnelly, Chairman and CEO, said, &#8220;While a work stoppage at Textron Aviation impacted our 2024 financial results, we saw strong order activity, aftermarket growth, and continued new product development activities with the announcement of the Gen3 family of light jets.&#8221;
&#8220;2024 was a challenging year with a strike at Aviation and difficult end markets in our Industrial segment. Our 2025 outlook of higher revenue and margin reflects a stabilized production line with improved productivity at Textron Aviation, growth across our aerospace and defense businesses driven by new product development, and an improved cost structure at our Industrial segment,&#8221;&nbsp;Donnelly concluded.
Investors can gain exposure to the stock via First Trust Exchange-Traded Fund First Trust Indxx Aerospace &amp; Defense ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MISL#NYSE">MISL</a>) and iShares U.S. Aerospace &amp; Defense ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ITA#BATS">ITA</a>).
Price Action:&nbsp;TXT shares are down 3.63% at $78.25&nbsp;premarket at the last check Wednesday.
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Textron Reports Mixed Q4, Faces Challenges In Aviation And Industrial Segments

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OKYO Pharma shares are trading higher after the company announced it received $1.4 million in non-dilute funding.

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Roth MKM analyst Rohit Kulkarni downgrades Reddit (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>) from Buy to Neutral and raises the price target from $116 to $195.

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VINC

Vincerx Pharma shares are trading lower after the company announced it may offer and sell $30 million worth of common stock.

<a href="https://www.globenewswire.com/Tracker?data=QXq3KhPK_8AZgZP0kL1zm4OuPOBpEPdgK_fp2s7wK5bnwXPy3dRd5xP7xTL19DpM477m4sv30hFbPEa6vL3ajvbyFFCBQDbji-UXrcFNXR8=">KULR Technology Group, Inc.</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KULR#NYSE">KULR</a>) (the "Company" or "KULR"), a global leader in carbon-based thermal management and battery safety solutions, has announced an innovative collaboration with the prestigious Scripps Research Institute's Baran Lab. Together, the teams have developed a groundbreaking pyrolytic carbon (PC) electrode material, poised to transform synthetic organic electrochemistry.
The jointly developed electrode is a low-cost, robust, and versatile alternative to traditional amorphous carbon materials such as reticulated vitreous carbon (RVC) and glassy carbon (GC). With unparalleled mechanical strength and reactivity comparable to RVC and GC, this novel PC material overcomes the limitations of cost and scalability that have historically constrained large-scale synthetic organic applications.
Key Advancements:
<ul>
<li>Affordable and Scalable: The pyrolytic carbon electrodes are produced using a proprietary chemical vapor deposition (CVD) process, significantly reducing manufacturing costs and making large-scale synthesis feasible.</li>
<li>Versatile Applications: The material performs exceptionally well across a range of electrochemical reactions, including rapid alternating polarity (rAP) Kolbe couplings, which are essential for high-value chemical production.</li>
<li>Durability and Recyclability: Unlike fragile RVC electrodes, PC electrodes are mechanically robust, enabling simple cleaning and reusability without degradation.</li>
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KULR

KULR Technology Group And Scripps Research Institute's Baran Lab Develop Cost-Effective Pyrolytic Carbon Electrode For Synthetic Organic Electrochemistry; Enhances Scalability, Versatility In Reactions, And Durability With Proprietary Chemical Vapor Deposition Process

Barclays analyst Kannan Venkateshwar downgrades Rogers Communications (TSX:<a class="ticker" href="https://www.benzinga.com/stock/RCI#TSX">RCI</a>) from Overweight to Equal-Weight and lowers the price target from C$63 to C$39.

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Barclays Downgrades Rogers Communications to Equal-Weight, Lowers Price Target to C$39

Xilio Therapeutics shares are trading lower after the company reported initial data from its ongoing Phase 2 clinical trial evaluating vilastobart in combination with atezolizumab.

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GE Aerospace (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GE#NYSE">GE</a>) will release its fourth-quarter financial results before the <a href="https://www.benzinga.com/quote/GE/earnings">opening bell on Thursday, Jan. 23</a>.
Analysts expect the Ohio-based company to report quarterly earnings at $1.04 per share, up from $1.03 per share in the year-ago period. GE Aerospace projects quarterly revenue of $9.47 billion, compared to $19.42 billion a year earlier, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
On Jan. 2, Deutsche Bank analyst Scott Deuschle maintained GE Aero with a Buy rating and lowered the price target from $235 to $228.
With the recent buzz around GE Aerospace, some investors may be eyeing potential gains from the company's dividends. As of now, GE Aerospace offers an annual dividend yield of 0.60%, which is a quarterly dividend amount of 28 cents per share ($1.12 a year).
To figure out how to earn $500 monthly from GE Aerospace, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by GE Aerospace's $1.12 dividend: $6,000 / $1.12 = 3,000 shares.
So, an investor would need to own approximately $1,004,438 worth of GE Aerospace, or 5,357 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $1.12 = 1,071 shares, or $200,813 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
GE Price Action: Shares of GE Aerospace gained by 2.5% to close at $187.50 on Tuesday.
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Long Ideas

How To Earn $500 A Month From GE Aerospace Stock Ahead Of Q4 Earnings

USEG

U.S. Energy Corp shares are trading higher. The company announced a public offering of 4,236,000 shares.

Barclays analyst Kannan Venkateshwar downgrades BCE (TSX:<a class="ticker" href="https://www.benzinga.com/stock/BCE#TSX">BCE</a>) from Equal-Weight to Underweight and lowers the price target from C$41 to C$30.

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Barclays Downgrades BCE to Underweight, Lowers Price Target to C$30

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Lisata Therapeutics shares are trading lower after the company announced preliminary cohort data from its Phase 2 Ascend trial.

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Hepion Pharmaceuticals shares are trading lower after the company announced a $9 million public offering.

BLBX

Blackboxstocks shares are trading higher after the company announced a $250K securities purchase agreement and is anticipating a potential merger.

Nissin Foods

<h4>Key Takeaways:</h4>

<ul>
	<li>Nissin Foods is purchasing Australian frozen dumpling maker ABC Pastry for $23.3 million, seeking to tap demand from the country&rsquo;s growing Asian population</li>
	<li>Nissin is looking to diversify geographically from its base in Mainland China and Hong Kong with other recent moves into Vietnam and Taiwan</li>
</ul>

By Doug Young

If you can&rsquo;t stand the heat from China&rsquo;s economic slowdown, you get out of the kitchen.

Perhaps that&rsquo;s just a slight exaggeration if your name is&nbsp;Nissin Foods Co. Ltd.&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/NSFCF#OTC">NSFCF</a>), the China subsidiary of Japan&rsquo;s Nissin Food Holdings (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NFPDF#OTC">NFPDF</a>), the former of which still gets nearly all its revenue from its two main markets in Mainland China and Hong Kong. But the Hong Kong-listed Nissin is increasingly creeping beyond those two main markets with several strategic moves, laying the groundwork for a more diversified revenue base.

In its latest move in that direction, the company&nbsp;<a href="https://www1.hkexnews.hk/listedco/listconews/sehk/2024/0927/2024092701479.pdf">announced on Friday</a>&nbsp;it will purchase Australian frozen dumpling maker ABC Pastry for a cool A$33.7 million ($23.3 million). The purchase price looks quite affordable for Hong Kong-listed Nissin, which is debt-free and had HK$1.32 billion ($170 million) in net cash and another HK$820 million in banking facilities at the end of June.

In addition to the purchase price, Nissin said it also has the option to purchase the land where ABC&rsquo;s factory produces its dumplings for another A$8.8 million.

Nissin called the deal a &ldquo;premium opportunity&rdquo; to expand its business into Australia. &ldquo;The Australian frozen food market size is expected to experience robust growth as the frozen dumplings, in particular, have been benefiting from the rising Asian migration to Australia,&rdquo; it said.

Nissin&rsquo;s Hong Kong shares rose 2.24% in Monday morning trade after the announcement. The stock has been quite the laggard lately compared with its peers, reflecting the difficulties the company is facing during China&rsquo;s economic slowdown. Nissin&rsquo;s shares are down 29% so far this year, in sharp contrast to rivals&nbsp;Tingyi&nbsp;(0322.HK) and&nbsp;Uni-President China&nbsp;(0220.HK), which are up 17% and 27%, respectively.

Nissin used to be a leader among that trio in terms of valuation, reflecting its market positioning. With its Japanese roots and status as the inventor of instant noodles, the company bills itself as a premium brand within its class. But as its stock has sunk, its price-to-earnings (P/E) ratio has fallen to 14, trailing Tingyi&rsquo;s 17 and Uni-President&rsquo;s 16.

Nissin&rsquo;s positioning as a premium brand seems to be increasingly problematic in the current environment where consumers are reining in their spending and downgrading from higher-end products to more affordable ones. As that happens, the company&rsquo;s revenue began contracting last year after several years of solid growth during the pandemic when consumers slurped up its cheap and convenient stay-at-home foods.

Nissin&rsquo;s revenue contraction continued in the first half of this year, falling 5.5% year-on-year to HK$1.82 billion. That decline contrasted sharply with a slight 0.1% revenue increase for Tingyi during the same period, and an even larger 6% rise for Uni-President China.&nbsp;Weilong Delicious&nbsp;(9985.HK), a maker of cheap snacks costing just pennies each, reported its revenue jumped 26% during the period, partly due to the growing consumer fondness for cheap eats.

<h3>Growing Global&nbsp;Footprint</h3>

Nissin&rsquo;s Japanese parent is quite the global company, with its signature Cup Noodles available in most major markets throughout the world. Within Asia, the Japanese company is active in most major Southeast Asian markets, including the Philippines, Thailand, Singapore, Malaysia and Indonesia.

The Hong Kong-listed Nissin is still largely confined to the Hong Kong and Mainland China markets, with those two accounting for about 40% and 60% of its revenue, respectively, in the first half of this year. Both markets experienced revenue declines in the latest six-month period, with Hong Kong down 6% while Mainland China fell 3% in yuan terms.

Even though its revenue fell, Nissin&rsquo;s profit held mostly steady at HK$169 million, down slightly from HK$172 million a year earlier, thanks to a 0.9 percentage point improvement in its gross margin due to falling raw material costs.

The newly acquired Australia operation, by comparison, looks a bit healthier, at least in terms of profitability. Nissin said ABC Pastry recorded revenue of A$15.2 million for its fiscal year through June this year, though it didn&rsquo;t provide any previous-year comparisons. That figure is quite small compared to Nissin&rsquo;s own revenue, equating to about 2% of the HK$3.83 billion Nissin generated last year.

ABC Pastry also looks quite profitable, with its profit after tax rising 27% to A$2.84 million in the fiscal year through June from A$2.23 million a year earlier. That equates to a net profit margin of 18.7% for ABC Pastry, or roughly double Nissin&rsquo;s own net margin of 9.3% in the first six months of this year. All this shows that ABC Pastry is quite profitable and probably growing in terms of revenue, meaning it could serve as a good base for Nissin to quickly expand in the market.

Australia is just the latest regional market where the Hong Kong-listed Nissin is expanding its footprint as it tries to diversify geographically beyond Hong Kong and Mainland China.

The company took its first fledgling step outside those two core markets last July, when it purchased 67% of its parent company&rsquo;s Vietnamese business. That operation consists mostly of a single instant noodle factory, and the unit lost $1.4 million in its fiscal year through March 2023. Nissin mentioned the Vietnam operation in its latest half-year report, but said only that &ldquo;a good performance was achieved, and the overall business outlook was encouraging,&rdquo; suggesting it still generates relatively small revenue.

More recently, Nissin established an office late last year in Taiwan, where its products are currently sold through distributors and wholesalers. In its latest report it said the operation &ldquo;is expected to achieve sales growth subsequently,&rdquo; but didn&rsquo;t elaborate on potential plans to beef up the operation or potentially set up any local manufacturing.

Here, we should note that Taiwan is the home turf for both Uni-President and Tingyi, and thus Nissin will face extremely tough competition from these two players if it makes a serious attempt to expand in the market. Then again, Taiwanese are also famous for their love of all things Japanese, and thus local consumers might enjoy such a new instant noodle option.

At the end of the day, this diversification strategy looks prudent for the Hong Kong-listed Nissin as its two main markets head into what could become a prolonged period of uncertainty. Vietnam and Taiwan are probably both already quite competitive but could still have some potential due to Nissin&rsquo;s positioning as a premium brand. Meantime, the latest move into Australia could have even greater potential due to the country&rsquo;s growing Asian population and a lower level of competition in foods catering to this customer group.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Nissin Foods Looks 'Down Under' To Escape China Pressure Cooker

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