Inner Mongolia Yili Industrial Group Co., Ltd.

SHSE:600887 Stock Report

Market Cap: CN¥180.2b

Inner Mongolia Yili Industrial Group Valuation

Is 600887 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 600887 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 600887 (CN¥28.22) is trading below our estimate of fair value (CN¥40.93)

Significantly Below Fair Value: 600887 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 600887?

Key metric: As 600887 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 600887. This is calculated by dividing 600887's market cap by their current earnings.
What is 600887's PE Ratio?
PE Ratio15x
EarningsCN¥11.92b
Market CapCN¥180.15b

Price to Earnings Ratio vs Peers

How does 600887's PE Ratio compare to its peers?

The above table shows the PE ratio for 600887 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average43.9x
300999 Yihai Kerry Arawana Holdings
83.5x34.2%CN¥179.5b
603288 Foshan Haitian Flavouring and Food
39.5x10.2%CN¥241.4b
002714 Muyuan Foods
27.3x27.3%CN¥222.1b
300498 Wens Foodstuff Group
25.2x29.0%CN¥114.8b
600887 Inner Mongolia Yili Industrial Group
15x1.8%CN¥180.2b

Price-To-Earnings vs Peers: 600887 is good value based on its Price-To-Earnings Ratio (15x) compared to the peer average (43.9x).

Price to Earnings Ratio vs Industry

How does 600887's PE Ratio compare vs other companies in the CN Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
002157 Jiangxi Zhengbang TechnologyLtd
2.6xn/aUS$3.94b
600872 Jonjee Hi-Tech Industrial and Commercial HoldingLtd
4.6x-46.9%US$2.27b
002086 Shandong Oriental Ocean Sci-Tech
3.8xn/aUS$824.77m
No more companies available in this PE range
600887 15.0xIndustry Avg. 27.8xNo. of Companies19PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 600887 is good value based on its Price-To-Earnings Ratio (15x) compared to the CN Food industry average (27.8x).

Price to Earnings Ratio vs Fair Ratio

What is 600887's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

600887 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: 600887 is good value based on its Price-To-Earnings Ratio (15x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 600887 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCN¥28.22
CN¥32.10
+13.7%
6.4%CN¥35.20CN¥27.70n/a20
Nov ’25CN¥28.30
CN¥31.88
+12.6%
6.0%CN¥35.20CN¥27.70n/a22
Oct ’25CN¥29.07
CN¥29.45
+1.3%
9.4%CN¥34.00CN¥22.50n/a23
Sep ’25CN¥22.63
CN¥30.59
+35.2%
7.9%CN¥35.60CN¥27.00n/a23
Aug ’25CN¥24.50
CN¥33.49
+36.7%
7.2%CN¥37.20CN¥28.00n/a23
Jul ’25CN¥25.97
CN¥34.61
+33.3%
5.7%CN¥38.00CN¥29.30n/a23
Jun ’25CN¥28.31
CN¥34.85
+23.1%
6.4%CN¥40.00CN¥29.30n/a24
May ’25CN¥28.61
CN¥35.74
+24.9%
6.5%CN¥40.90CN¥32.00n/a23
Apr ’25CN¥28.15
CN¥36.37
+29.2%
8.7%CN¥46.10CN¥32.00n/a24
Mar ’25CN¥28.26
CN¥36.37
+28.7%
8.7%CN¥46.10CN¥32.00n/a24
Feb ’25CN¥26.96
CN¥36.24
+34.4%
9.1%CN¥46.10CN¥30.60n/a24
Jan ’25CN¥26.75
CN¥37.22
+39.1%
10.6%CN¥48.00CN¥30.60n/a24
Dec ’24CN¥27.05
CN¥37.22
+37.6%
10.6%CN¥48.00CN¥30.60n/a24
Nov ’24CN¥27.32
CN¥36.80
+34.7%
11.4%CN¥48.00CN¥30.60CN¥28.3024
Oct ’24CN¥26.53
CN¥36.53
+37.7%
10.8%CN¥46.39CN¥29.80CN¥29.0724
Sep ’24CN¥26.05
CN¥37.88
+45.4%
10.6%CN¥46.39CN¥29.80CN¥22.6324
Aug ’24CN¥28.25
CN¥39.64
+40.3%
8.8%CN¥50.43CN¥34.00CN¥24.5024
Jul ’24CN¥28.32
CN¥40.97
+44.7%
8.8%CN¥50.43CN¥34.90CN¥25.9724
Jun ’24CN¥29.09
CN¥40.94
+40.7%
8.8%CN¥50.43CN¥34.90CN¥28.3125
May ’24CN¥29.56
CN¥40.74
+37.8%
10.2%CN¥50.43CN¥30.00CN¥28.6123
Apr ’24CN¥29.12
CN¥40.99
+40.8%
10.3%CN¥50.43CN¥30.00CN¥28.1522
Mar ’24CN¥31.12
CN¥41.36
+32.9%
10.3%CN¥50.43CN¥30.00CN¥28.2623
Feb ’24CN¥32.58
CN¥41.06
+26.0%
12.9%CN¥51.00CN¥30.00CN¥26.9623
Jan ’24CN¥31.00
CN¥41.02
+32.3%
15.0%CN¥56.00CN¥30.00CN¥26.7523
Dec ’23CN¥29.91
CN¥41.39
+38.4%
15.2%CN¥56.00CN¥30.00CN¥27.0524
Nov ’23CN¥26.54
CN¥42.13
+58.7%
15.8%CN¥56.00CN¥30.00CN¥27.3224

Analyst Forecast: Target price is less than 20% higher than the current share price.

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