Nissin Foods, founded by Ando’s grandfather Momofuku Ando, is the largest instant noodle supplier in Hong Kong with a 65 percent market share based on retail sales value, the South China Morning Post reported last month. The company’s heft in Hong Kong pales in comparison with its performance in China, where it has a paltry 2.6 percent market share.
But in the smaller premium segment, the company is the second-largest player with a 20 percent share of the market, behind Chinese firm Tingyi, according to the SCMP.
Kevin Leung, director for global investment strategy at Haitong International Securities, told CNBC the company’s long-term prospects look promising, but its valuation looks high.
“For longer term, I think we like what we’re seeing because there’s still a pretty big growth story in China — that’s still a pretty untapped potential,” Leung said. “(But) on the valuation side it’s still a little bit on the high side.”
