SHSE:600887

Stock Analysis Report

Inner Mongolia Yili Industrial Group

Executive Summary

Inner Mongolia Yili Industrial Group Co., Ltd.


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Inner Mongolia Yili Industrial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 600887 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

600887

1.6%

CN Food

1.4%

CN Market


1 Year Return

11.5%

600887

28.3%

CN Food

13.6%

CN Market

Return vs Industry: 600887 underperformed the CN Food industry which returned 27.8% over the past year.

Return vs Market: 600887 underperformed the CN Market which returned 15.7% over the past year.


Shareholder returns

600887IndustryMarket
7 Day-2.7%1.6%1.4%
30 Day-3.1%9.9%4.8%
90 Day1.0%6.8%12.8%
1 Year14.2%11.5%30.2%28.3%15.5%13.6%
3 Year78.7%64.9%46.9%40.2%-3.6%-7.5%
5 Year140.8%113.8%83.8%71.5%9.6%2.9%

Price Volatility Vs. Market

How volatile is Inner Mongolia Yili Industrial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Inner Mongolia Yili Industrial Group undervalued compared to its fair value and its price relative to the market?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 600887 (CN¥29.69) is trading below our estimate of fair value (CN¥35.5)

Significantly Below Fair Value: 600887 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 600887 is good value based on its PE Ratio (25.6x) compared to the Food industry average (35.5x).

PE vs Market: 600887 is good value based on its PE Ratio (25.6x) compared to the CN market (35.1x).


Price to Earnings Growth Ratio

PEG Ratio: 600887 is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: 600887 is overvalued based on its PB Ratio (7.4x) compared to the CN Food industry average (3x).


Next Steps

Future Growth

How is Inner Mongolia Yili Industrial Group forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

11.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 600887's forecast earnings growth (11.3% per year) is above the savings rate (3.2%).

Earnings vs Market: 600887's earnings (11.3% per year) are forecast to grow slower than the CN market (22.4% per year).

High Growth Earnings: 600887's earnings are forecast to grow, but not significantly.

Revenue vs Market: 600887's revenue (10.6% per year) is forecast to grow slower than the CN market (16.5% per year).

High Growth Revenue: 600887's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 600887's Return on Equity is forecast to be high in 3 years time (31.3%)


Next Steps

Past Performance

How has Inner Mongolia Yili Industrial Group performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 600887 has a high level of non-cash earnings.

Growing Profit Margin: 600887's current net profit margins (8.1%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 600887's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: 600887's earnings growth over the past year (14.9%) exceeds its 5-year average (10.5% per year).

Earnings vs Industry: 600887 earnings growth over the past year (14.9%) exceeded the Food industry 5.1%.


Return on Equity

High ROE: 600887's Return on Equity (28.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Inner Mongolia Yili Industrial Group's financial position?


Financial Position Analysis

Short Term Liabilities: 600887's short term assets (CN¥20.9B) do not cover its short term liabilities (CN¥27.2B).

Long Term Liabilities: 600887's short term assets (CN¥20.9B) exceed its long term liabilities (CN¥1.5B).


Debt to Equity History and Analysis

Debt Level: 600887's debt to equity ratio (34.5%) is considered satisfactory.

Reducing Debt: 600887's debt to equity ratio has reduced from 42.7% to 34.5% over the past 5 years.

Debt Coverage: 600887's debt is well covered by operating cash flow (83.5%).

Interest Coverage: 600887 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 600887 has a high level of physical assets or inventory.

Debt Coverage by Assets: 600887's debt is covered by short term assets (assets are 2.5x debt).


Next Steps

Dividend

What is Inner Mongolia Yili Industrial Group's current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Dividend Yield vs Market

company2.4%marketbottom25%0.4%markettop25%1.9%industryaverage1.5%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: 600887's dividend (2.36%) is higher than the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 600887's dividend (2.36%) is in the top 25% of dividend payers in the CN market (1.83%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 600887 has been paying a dividend for less than 10 years.

Growing Dividend: 600887's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (60.4%), 600887's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 600887's dividends in 3 years are forecast to be covered by earnings (81.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.7yrs

Average board tenure


CEO

Gang Pan (49yo)

CN¥14,865,607

Compensation

Mr. Gang Pan has been Chairman of Inner Mongolia Yili Industrial Group Co., Ltd since June 2005 and serves as its President. Mr. Pan served as President of Inner Mongolia Yili Industrial Group Co., Ltd sin ...


Board Members

NamePositionTenureCompensationOwnership
Gang Pan
Chairman of the Board & President0yrsCN¥14.87m4.7% CN¥8.4b
Cheng Zhao
CFO, VP & Director14.7yrsCN¥5.88m1.52% CN¥2.7b
Rui Sheng Wang
Assistant to the President & Director13.2yrsCN¥887.31kno data
Li Ping Hu
VP, Secretary & Director14.7yrsCN¥3.58m1.3% CN¥2.3b
Chun Hai Liu
VP & Director14.7yrsCN¥6.37m1.5% CN¥2.7b
Xiao Gang Wang
Chairman of the Supervisory Board 13.1yrsCN¥1.66mno data
Jin Guo Yang
Director0yrsCN¥61.67kno data
De Bu Gao
Independent Director0yrsCN¥250.00kno data
Hong Gao
Independent Director0yrsCN¥250.00kno data
Zhang Ping
Director0yrsno datano data

14.7yrs

Average Tenure

53yo

Average Age

Experienced Board: 600887's board of directors are seasoned and experienced ( 14.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Inner Mongolia Yili Industrial Group Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Inner Mongolia Yili Industrial Group Co., Ltd.
  • Ticker: 600887
  • Exchange: SHSE
  • Founded: 1956
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: CN¥179.051b
  • Shares outstanding: 6.10b
  • Website: https://www.yili.com

Number of Employees


Location

  • Inner Mongolia Yili Industrial Group Co., Ltd.
  • No. 8, Jinshan Road
  • Jinshan Development Zone
  • Hohhot
  • Inner Mongolia Province
  • 10110
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
600887SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYAug 1996
600887XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYAug 1996

Biography

Inner Mongolia Yili Industrial Group Co., Ltd. produces and sells dairy products in China and internationally. The company offers liquid milk, milk powder, yoghourt, ice cream, and cheese. Inner Mongolia Yili Industrial Group Co., Ltd. has strategic partnership with SterilgardaAlimentiS.p.A for the development of dairy products. The company was founded in 1956 and is based in Hohhot, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/26 14:37
End of Day Share Price2020/02/25 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.