SEHK:1717

Stock Analysis Report

Executive Summary

Ausnutria Dairy Corporation Ltd, an investment holding company, primarily engages in the research and development, milk collection, processing, production, packaging, marketing, and distribution of infant formula and other dairy products.


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.

Share Price & News

How has Ausnutria Dairy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1717's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.6%

1717

2.2%

HK Food

-0.6%

HK Market


1 Year Return

28.2%

1717

9.0%

HK Food

-7.6%

HK Market

Return vs Industry: 1717 exceeded the Hong Kong Food industry which returned 8.9% over the past year.

Return vs Market: 1717 exceeded the Hong Kong Market which returned -7.4% over the past year.


Shareholder returns

1717IndustryMarket
7 Day22.6%2.2%-0.6%
30 Day24.0%2.6%-1.2%
90 Day30.4%11.3%3.0%
1 Year29.5%28.2%11.9%9.0%-4.2%-7.6%
3 Year305.1%290.9%51.6%40.5%12.9%1.5%
5 Year403.6%379.6%22.2%10.1%13.1%-5.6%

Price Volatility Vs. Market

How volatile is Ausnutria Dairy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ausnutria Dairy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1717 (HK$12.9) is trading below our estimate of fair value (HK$26.57)

Significantly Below Fair Value: 1717 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1717 is poor value based on its PE Ratio (23.3x) compared to the Food industry average (15.9x).

PE vs Market: 1717 is poor value based on its PE Ratio (23.3x) compared to the Hong Kong market (10.1x).


Price to Earnings Growth Ratio

PEG Ratio: 1717 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 1717 is overvalued based on its PB Ratio (5.5x) compared to the HK Food industry average (0.8x).


Next Steps

Future Growth

How is Ausnutria Dairy forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

29.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1717's forecast earnings growth (29.6% per year) is above the savings rate (1.6%).

Earnings vs Market: 1717's earnings (29.6% per year) are forecast to grow faster than the Hong Kong market (11.7% per year).

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

Revenue vs Market: 1717's revenue (23.3% per year) is forecast to grow faster than the Hong Kong market (9.5% per year).

High Growth Revenue: 1717's revenue (23.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1717's Return on Equity is forecast to be high in 3 years time (29%)


Next Steps

Past Performance

How has Ausnutria Dairy performed over the past 5 years?

48.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1717 has a high level of non-cash earnings.

Growing Profit Margin: 1717's current net profit margins (12.8%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: 1717's earnings have grown significantly by 48.1% per year over the past 5 years.

Accelerating Growth: 1717's earnings growth over the past year (48.1%) exceeds its 5-year average (48.1% per year).

Earnings vs Industry: 1717 earnings growth over the past year (48.1%) exceeded the Food industry 2.1%.


Return on Equity

High ROE: 1717's Return on Equity (23%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ausnutria Dairy's financial position?


Financial Position Analysis

Short Term Liabilities: 1717's short term assets (CN¥4.5B) exceed its short term liabilities (CN¥3.0B).

Long Term Liabilities: 1717's short term assets (CN¥4.5B) exceed its long term liabilities (CN¥1.0B).


Debt to Equity History and Analysis

Debt Level: 1717's debt to equity ratio (31.8%) is considered satisfactory.

Reducing Debt: 1717's debt to equity ratio has reduced from 38.5% to 31.8% over the past 5 years.

Debt Coverage: 1717's debt is well covered by operating cash flow (60.9%).

Interest Coverage: 1717 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 1717 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1717's debt is covered by short term assets (assets are 4.1x debt).


Next Steps

Dividend

What is Ausnutria Dairy's current dividend yield, its reliability and sustainability?

1.13%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%2.3%markettop25%6.3%industryaverage2.2%forecastin3Years2.5%

Current dividend yield vs market & industry

Notable Dividend: 1717's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 1717's dividend (1.13%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.35%).


Stability and Growth of Payments

Stable Dividend: 1717 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.

Growing Dividend: 1717 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 1717 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1717's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Bart van der Meer (73yo)

6.7yrs

Tenure

CN¥1,713,000

Compensation

Mr. Bartle van der Meer, also known as Bart, has been Director of PMH Investments B.V. since 1994. He has been the Chief Executive Officer of Ausnutria Dairy Corporation Ltd. since June 07, 2013. Mr. van d ...


CEO Compensation Analysis

Compensation vs Market: Bart's total compensation ($USD243.72K) is below average for companies of similar size in the Hong Kong market ($USD556.75K).

Compensation vs Earnings: Bart's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Weibin Yan
Co-Founder & Executive Chairman6.7yrsCN¥1.94m7.45% CN¥1.5b
Bartle van der Meer
CEO & Executive Director6.7yrsCN¥1.71m0.074% CN¥15.5m
Siu Hung Ng
Executive Director10.4yrsCN¥1.47m0.062% CN¥12.9m
Wei Hua Wong
CFO & Company Secretary8.4yrsno datano data
Zhiyong Dai
Vice Chairman and Chief Quality Officer - Ausnutria Institution of Food & Nutrition0yrsno datano data
Yuehui Liu
Chief Supervisor0yrsno datano data
Shenhui Deng
Chief Operation Officer of Group - PRC Region0yrsno datano data
Alfred Haandrikman
Global Chief Scientific Officer of Ausnutria B.V.0yrsno datano data
Li Dai
Consultant5.9yrsCN¥24.00kno data

6.7yrs

Average Tenure

50yo

Average Age

Experienced Management: 1717's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Weibin Yan
Co-Founder & Executive Chairman6.7yrsCN¥1.94m7.45% CN¥1.5b
Bartle van der Meer
CEO & Executive Director6.7yrsCN¥1.71m0.074% CN¥15.5m
Siu Hung Ng
Executive Director10.4yrsCN¥1.47m0.062% CN¥12.9m
Zhiyong Dai
Vice Chairman and Chief Quality Officer - Ausnutria Institution of Food & Nutrition0yrsno datano data
Aidan Maurice Coleman
Independent Non-Executive Director1.2yrsCN¥21.00kno data
Baijun Qiao
Non-Executive Director1.2yrsCN¥18.00kno data
Liang Shi
Vice-Chairman1.2yrsCN¥18.00kno data
Jason Wan
Independent Non-Executive Director10.4yrsCN¥226.00k0.019% CN¥3.9m
Chang-Hai Tsai
Non-Executive Director4.1yrsCN¥216.00k0.019% CN¥3.9m
Chun Fai Lau
Independent Non-Executive Director5.1yrsCN¥275.00k0.012% CN¥2.6m

5.1yrs

Average Tenure

51.5yo

Average Age

Experienced Board: 1717's board of directors are considered experienced (5.1 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 23.4%.


Top Shareholders

Company Information

Ausnutria Dairy Corporation Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ausnutria Dairy Corporation Ltd
  • Ticker: 1717
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: HK$20.781b
  • Shares outstanding: 1.61b
  • Website: https://www.ausnutria.com.hk

Number of Employees


Location

  • Ausnutria Dairy Corporation Ltd
  • Unit 16, China Merchants Tower
  • 36th Floor
  • Central
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1717SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDOct 2009
6AHDB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2009
1717SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2009
1717SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDOct 2009

Biography

Ausnutria Dairy Corporation Ltd, an investment holding company, primarily engages in the research and development, milk collection, processing, production, packaging, marketing, and distribution of infant formula and other dairy products. The company operates in two segments, Dairy and Related Products, and Nutrition Products. It offers cow milk based formula products under the Allnutria, Hyproca Bio-Science, Puredo, Mygood, and Eurlate brand names; and goat milk based infant formula products under the Kabrita brand. The company also produces formula milk powder products on an OEM basis. In addition, it engages in the research and development, manufacturing, packaging, marketing, and distribution of complementary medicine, and nutritional and health care products under the Nutrition Care and Brighthope brand names, as well as provision of contract manufacturing services. The company operates in the People's Republic of China, the Netherlands, Australia, New Zealand, the Middle East, North America, Russia and the Commonwealth of Independent States, and internationally. Ausnutria Dairy Corporation Ltd was founded in 2003 and is based in Central, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 13:05
End of Day Share Price2020/02/21 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.