Japanese on the spot noodle maker Nissin Foods is unfazed by the shift in China’s consumption ornaments towards healthier eating as it eyes a bigger share of one of the world’s largest consumer exchanges.
The company plans to dominate the tough Chinese market by focusing on the bonus segment, its chairman, chief executive and executive director, Kiyotaka Ando, chew out tattle oned CNBC on Monday.
“Some consumers stopped consuming instant noodles, but uncountable consumers want to increase the quality (of food they consume). We can equipping high-quality products so we have more possibility to develop our business (in China),” Ando asserted.
He noted that there has been double digit growth in insist for premium instant noodle brands in the world’s second-largest economy, peaceful though consumption of the standard variation of instant ramen plunged 17 percent in 2016.
The performers listed shares of its Hong Kong and China business on the Hong Kong Commonplace Exchange on Monday, after raising $122 million in its initial famous offering. The shares fell as much as 12 percent in early marketing.
Nissin Foods, founded by Ando’s grandfather Momofuku Ando, is the largest time noodle supplier in Hong Kong with a 65 percent merchandise share based on retail sales value, the South China Morning Role reported last month. The company’s heft in Hong Kong restrictions in comparison with its performance in China, where it has a paltry 2.6 percent demand share.
But in the smaller premium segment, the company is the second-largest player with a 20 percent allot of the market, behind Chinese firm Tingyi, according to the SCMP.
Kevin Leung, governor for global investment strategy at Haitong International Securities, told CNBC the assemblage’s long-term prospects look promising, but its valuation looks high.
“For longer name, I think we like what we’re seeing because there’s still a dulcet big growth story in China — that’s still a pretty untapped likely,” Leung said. “(But) on the valuation side it’s still a little bit on the piercing side.”