[ET Net News Agency, 26 March 2020] Moody's Investors Service said that Tingyi (Cayman
Islands) Holding Corp.'s results for 2019 were in line with expectations, and support its
Baa1 issuer rating and the stable rating outlook.
"Tingyi has maintained a stable credit profile, featuring steady cash flow generation,
low leverage and a strengthened net cash position," said Ying Wang, a Moody's Vice
President and Senior Analyst.
Tingyi's revenue grew 2.1% year-on-year to RMB62 billion. By segment, the company's
instant noodle products posted 5.8% revenue growth, outpacing the 0.8% increase for its
beverage products. Instant noodles and beverages accounted for 41% and 57% of Tingyi's
revenue respectively in 2019.
Moody's expects Tingyi's revenue will remain flat or slightly decrease in 2020, after
considering the impact of coronavirus outbreak and slower economic growth in China.
In the near term, increased demand for food products with a long shelf life, such as
Tingyi's instant noodles, may provide some buffer against a decline in beverage sales as
consumers travel less and reduce outdoor activities. Moody's 2020 revenue projection is
based on the assumption that food and beverage consumption in China will gradually recover
in the second half of 2020. (KL)