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1117

China Modern Dairy Holdings SEHK:1117 Stock Report

Last Price

HK$1.20

Market Cap

HK$9.3b

7D

13.2%

1Y

-40.6%

Updated

17 May, 2022

Data

Company Financials +
1117 fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health3/6
Dividends1/6

1117 Stock Overview

China Modern Dairy Holdings Ltd., an investment holding company, produces and sells milk in Mainland China.

China Modern Dairy Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for China Modern Dairy Holdings
Historical stock prices
Current Share PriceHK$1.20
52 Week HighHK$2.17
52 Week LowHK$1.04
Beta1.47
1 Month Change-4.76%
3 Month Change-19.46%
1 Year Change-40.59%
3 Year Change17.65%
5 Year Change-20.00%
Change since IPO-52.19%

Recent News & Updates

May 08
Is China Modern Dairy Holdings (HKG:1117) Using Too Much Debt?

Is China Modern Dairy Holdings (HKG:1117) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Apr 21
Is China Modern Dairy Holdings Ltd. (HKG:1117) Potentially Undervalued?

Is China Modern Dairy Holdings Ltd. (HKG:1117) Potentially Undervalued?

China Modern Dairy Holdings Ltd. ( HKG:1117 ), is not the largest company out there, but it received a lot of attention...

Apr 05
China Modern Dairy Holdings Ltd. (HKG:1117) Shares Could Be 28% Above Their Intrinsic Value Estimate

China Modern Dairy Holdings Ltd. (HKG:1117) Shares Could Be 28% Above Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of China Modern Dairy Holdings Ltd. ( HKG:1117 ) by taking...

Shareholder Returns

1117HK FoodHK Market
7D13.2%1.7%0.05%
1Y-40.6%-29.3%-25.2%

Return vs Industry: 1117 underperformed the Hong Kong Food industry which returned -29.3% over the past year.

Return vs Market: 1117 underperformed the Hong Kong Market which returned -25.2% over the past year.

Price Volatility

Is 1117's price volatile compared to industry and market?
1117 volatility
1117 Average Weekly Movement7.9%
Food Industry Average Movement7.2%
Market Average Movement8.0%
10% most volatile stocks in HK Market14.9%
10% least volatile stocks in HK Market3.9%

Stable Share Price: 1117 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 1117's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20056,772Yugang Sunhttps://www.moderndairyir.com

China Modern Dairy Holdings Ltd., an investment holding company, produces and sells milk in Mainland China. It produces and sells raw milk to customers for processing into dairy products; and liquid milk products. The company is also involved in breeding dairy cows; selling feeds; and producing fodder.

China Modern Dairy Holdings Fundamentals Summary

How do China Modern Dairy Holdings's earnings and revenue compare to its market cap?
1117 fundamental statistics
Market CapCN¥8.00b
Earnings (TTM)CN¥1.02b
Revenue (TTM)CN¥7.08b

8.1x

P/E Ratio

1.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
1117 income statement (TTM)
RevenueCN¥7.08b
Cost of RevenueCN¥4.53b
Gross ProfitCN¥2.55b
Other ExpensesCN¥1.53b
EarningsCN¥1.02b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.13
Gross Margin36.02%
Net Profit Margin14.39%
Debt/Equity Ratio76.5%

How did 1117 perform over the long term?

See historical performance and comparison

Dividends

2.5%

Current Dividend Yield

18%

Payout Ratio

Does 1117 pay a reliable dividends?

See 1117 dividend history and benchmarks
When do you need to buy 1117 by to receive an upcoming dividend?
China Modern Dairy Holdings dividend dates
Ex Dividend DateJun 10 2022
Dividend Pay DateJun 30 2022
Days until Ex dividend24 days
Days until Dividend pay date44 days

Does 1117 pay a reliable dividends?

See 1117 dividend history and benchmarks

Valuation

Is China Modern Dairy Holdings undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


8.06x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 1117 (HK$1.2) is trading above our estimate of fair value (HK$1.07)

Significantly Below Fair Value: 1117 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1117 is good value based on its PE Ratio (8.1x) compared to the Hong Kong Food industry average (10.6x).

PE vs Market: 1117 is good value based on its PE Ratio (8.1x) compared to the Hong Kong market (8.7x).


Price to Earnings Growth Ratio

PEG Ratio: 1117 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: 1117's PB Ratio (0.8x) is in line with the HK Food industry average.


Future Growth

How is China Modern Dairy Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1117's forecast earnings growth (22.2% per year) is above the savings rate (1.5%).

Earnings vs Market: 1117's earnings (22.2% per year) are forecast to grow faster than the Hong Kong market (14.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 1117's revenue (17.7% per year) is forecast to grow faster than the Hong Kong market (9.9% per year).

High Growth Revenue: 1117's revenue (17.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1117's Return on Equity is forecast to be low in 3 years time (15.7%).


Past Performance

How has China Modern Dairy Holdings performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


70.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 1117 has a large one-off loss of CN¥963.8M impacting its December 31 2021 financial results.

Growing Profit Margin: 1117's current net profit margins (14.4%) are higher than last year (12.8%).


Past Earnings Growth Analysis

Earnings Trend: 1117 has become profitable over the past 5 years, growing earnings by 70% per year.

Accelerating Growth: 1117's earnings growth over the past year (32.3%) is below its 5-year average (70% per year).

Earnings vs Industry: 1117 earnings growth over the past year (32.3%) exceeded the Food industry 3.6%.


Return on Equity

High ROE: 1117's Return on Equity (9.3%) is considered low.


Financial Health

How is China Modern Dairy Holdings's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 1117's short term assets (CN¥5.3B) do not cover its short term liabilities (CN¥6.1B).

Long Term Liabilities: 1117's short term assets (CN¥5.3B) do not cover its long term liabilities (CN¥6.5B).


Debt to Equity History and Analysis

Debt Level: 1117's net debt to equity ratio (59.5%) is considered high.

Reducing Debt: 1117's debt to equity ratio has reduced from 94.5% to 76.5% over the past 5 years.

Debt Coverage: 1117's debt is well covered by operating cash flow (22%).

Interest Coverage: 1117's interest payments on its debt are well covered by EBIT (13.1x coverage).


Balance Sheet


Dividend

What is China Modern Dairy Holdings's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.51%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 17 2022Ex Dividend DateJun 10 2022Dividend Pay DateJun 30 202220 days from Ex DividendBuy in the next 24 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 1117's dividend (2.51%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.88%).

High Dividend: 1117's dividend (2.51%) is low compared to the top 25% of dividend payers in the Hong Kong market (7.8%).


Stability and Growth of Payments

Stable Dividend: 1117 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 1117's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18%), 1117's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: 1117 is paying a dividend but the company has no free cash flows.


Next Steps

Management

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

0.7yrs

Average management tenure


CEO

Yugang Sun (41 yo)

0.83

Tenure

CN¥7,854,000

Compensation

Mr. Yugang Sun serves as an Executive Director at China Modern Dairy Holdings Ltd. since April 1, 2020 and also serves as an Acting Chief Executive Officer since July 1, 2021. Mr. Sun re-joined the Group i...


CEO Compensation Analysis

Compensation vs Market: Yugang's total compensation ($USD1.16M) is above average for companies of similar size in the Hong Kong market ($USD526.09K).

Compensation vs Earnings: Yugang's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 1117's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1117's board of directors are considered experienced (3.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.4%.


Top Shareholders

Company Information

China Modern Dairy Holdings Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: China Modern Dairy Holdings Ltd.
  • Ticker: 1117
  • Exchange: SEHK
  • Founded: 2005
  • Industry: Agricultural Products
  • Sector: Food, Beverage & Tobacco
  • Implied Market Cap: HK$9.261b
  • Shares outstanding: 7.92b
  • Website: https://www.moderndairyir.com

Number of Employees


Location

  • China Modern Dairy Holdings Ltd.
  • Economic and Technological Devt. Zone
  • Danyang Town
  • Maanshan
  • Anhui Province
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.