Asian Dividend Gems: Grape King Bio

• Grape King Bio has one of the most remarkable consistency in profit margins among all Asian F&B companies. Its net margins ranged from 13% to 15% in the past decade.

• The company's dividend yield increased from 3.8% in 2021 to 4.1% in 2022, and 4.4% in 2023. Its annual dividend payout averaged 69.6% from 2019 to 2023.

• Established in 1969, Grape King Bio is one of the leading health food, drink, and supplement products manufacturers in Taiwan.

Photo by Jack Brind on Unsplash

Conclusion First

Grape King Bio is one of the leading health food, drink, and supplement products manufacturers in Taiwan. One of the most remarkable aspects about the company is its consistent profit margins.In the past 10 years, the company's net margins ranged from 13% to 15%. We believe that the company has one of the best records of generating consistent, positive net margins among all Asian F&B companies. This is a testament of the company's loyal customers that purchase its products year in and year out.

Grape King Bio's dividend yield also increased from 3.8% in 2021 to 4.1% in 2022, and 4.4% in 2023. Grape King Bio has attractive valuations. It is currently trading at 7x EV/EBITDA, 16.3x P/E, and 2.3x P/B.

Grape King Bio DPS, Dividend Yield, & Dividend Payout

Grape King Bio's dividend yield averaged 3.9% from 2019 to 2023. Its annual dividend payout averaged 69.6% in the same period. The company's DPS ranged from TWD 6.1 to TWD 6.9 in the past five years. The company's dividend yield increased from 3.8% in 2021 to 4.1% in 2022, and 4.4% in 2023.

Grape King Bio EPS, DPS, and Dividend Yield (Source: Smartkarma)

How Did We Find Grape King Bio?

We found Grape King Bio (1707 TT) using Smartkarma's Smart Score Screener system. We used the following screening methodology:

• Market cap - More than $600 million

• Countries - Taiwan only

• Sector - All sectors

• Dividends = Only 5

• Resilience, Value, Growth, and Momentum = 1 to 5

Using the criteria above resulted in a list of 63 stocks. Among these companies, we thought Grape King Bio was the most interesting company to write about at this time.

Source: Smartkarma

Grape King Bio Company Background

Established in 1969, Grape King Bio is one of the leading health food, drink, and supplement products manufacturers in Taiwan. Grape King Bio initially began as a wine production company in Taoyuan, Taiwan. However, over time, the founder identified a greater opportunity in the health supplement market. This strategic pivot led to the company focusing on biotechnology and the development of health food and supplement products.

The company launched Taiwan's first energy drink "ComeBest”(康貝特), functional energy beverage. Following the huge success of ComeBest, "Qi Mengzi” drink was launched and ended up being another popular drink.