China Mengniu Dairy
Market Cap
HK$152.9b
Last Updated
2020/10/30 12:53 UTC
Data Sources
Company Financials +
Executive Summary
China Mengniu Dairy Company Limited, an investment holding company, manufactures and distributes dairy products in the People’s Republic of China. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with moderate growth potential.
Similar Companies
Share Price & News
How has China Mengniu Dairy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2319 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.7%
2319
-3.8%
HK Food
-2.8%
HK Market
1 Year Return
14.6%
2319
2.8%
HK Food
-1.7%
HK Market
Return vs Industry: 2319 exceeded the Hong Kong Food industry which returned 7.5% over the past year.
Return vs Market: 2319 exceeded the Hong Kong Market which returned 0.5% over the past year.
Shareholder returns
| 2319 | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.7% | -3.8% | -2.8% |
| 30 Day | 0.4% | -3.4% | 2.7% |
| 90 Day | 0.3% | 0.1% | -0.4% |
| 1 Year | 15.4%14.6% | 6.2%2.8% | 2.3%-1.7% |
| 3 Year | 74.4%71.1% | 25.7%15.1% | -8.7%-18.6% |
| 5 Year | 175.6%165.3% | 39.6%23.5% | 13.7%-5.4% |
Price Volatility Vs. Market
How volatile is China Mengniu Dairy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall St
Is China Mengniu Dairy Company Limited's(HKG:2319) Recent Stock Performance Tethered To Its Strong Fundamentals?2 weeks ago | Simply Wall St
We Wouldn't Rely On China Mengniu Dairy's (HKG:2319) Statutory Earnings As A Guide4 weeks ago | Simply Wall St
What Does China Mengniu Dairy's (HKG:2319) CEO Pay Reveal?Valuation
Is China Mengniu Dairy undervalued compared to its fair value and its price relative to the market?
20.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2319 (HK$36.45) is trading below our estimate of fair value (HK$45.81)
Significantly Below Fair Value: 2319 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 2319 is poor value based on its PE Ratio (38.2x) compared to the HK Food industry average (13.2x).
PE vs Market: 2319 is poor value based on its PE Ratio (38.2x) compared to the Hong Kong market (10.9x).
Price to Earnings Growth Ratio
PEG Ratio: 2319 is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: 2319 is overvalued based on its PB Ratio (4.2x) compared to the HK Food industry average (0.9x).
Next Steps
Future Growth
How is China Mengniu Dairy forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?
23.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2319's forecast earnings growth (23.1% per year) is above the savings rate (1.6%).
Earnings vs Market: 2319's earnings (23.1% per year) are forecast to grow faster than the Hong Kong market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 2319's revenue (11.4% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).
High Growth Revenue: 2319's revenue (11.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2319's Return on Equity is forecast to be low in 3 years time (16.6%).
Next Steps
Past Performance
How has China Mengniu Dairy performed over the past 5 years?
21.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2319 has high quality earnings.
Growing Profit Margin: 2319's current net profit margins (4.2%) are lower than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: 2319's earnings have grown significantly by 21.3% per year over the past 5 years.
Accelerating Growth: 2319's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 2319 had negative earnings growth (-9%) over the past year, making it difficult to compare to the Food industry average (4.7%).
Return on Equity
High ROE: 2319's Return on Equity (9.7%) is considered low.
Next Steps
Financial Health
How is China Mengniu Dairy's financial position?
Financial Position Analysis
Short Term Liabilities: 2319's short term assets (CN¥41.4B) exceed its short term liabilities (CN¥32.6B).
Long Term Liabilities: 2319's short term assets (CN¥41.4B) exceed its long term liabilities (CN¥18.7B).
Debt to Equity History and Analysis
Debt Level: 2319's debt to equity ratio (86.5%) is considered high.
Reducing Debt: 2319's debt to equity ratio has increased from 41% to 86.5% over the past 5 years.
Debt Coverage: 2319's debt is well covered by operating cash flow (21.8%).
Interest Coverage: 2319 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
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Dividend
What is China Mengniu Dairy current dividend yield, its reliability and sustainability?
0.57%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2319's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.26%).
High Dividend: 2319's dividend (0.57%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.97%).
Stability and Growth of Payments
Stable Dividend: 2319 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.
Growing Dividend: 2319 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: 2319 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 2319'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?
0.8yrs
Average management tenure
CEO
Jeffrey Lu (51 yo)
4.08yrs
Tenure
CN¥11,511,000
Compensation
Mr. Minfang Lu, also known as Jeffrey, has been the Chief Executive Officer and Executive Director of China Mengniu Dairy Company Limited since September 15, 2016. Mr. Lu serves as the Non Executive Chairm ...
CEO Compensation Analysis
Compensation vs Market: Jeffrey's total compensation ($USD1.71M) is above average for companies of similar size in the Hong Kong market ($USD903.07K).
Compensation vs Earnings: Jeffrey's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.08yrs | CN¥11.51m | 0.0096% CN¥ 14.6m | |
| Executive Director | 1.33yrs | CN¥1.48m | no data | |
| VP & CFO | 6.33yrs | no data | no data | |
| VP & Head of Human Resources Management | no data | no data | no data | |
| VP & Head of Room Temperature Product Business Unit | 0.75yr | no data | no data | |
| VP & Head of Developing Business Unit | 0.75yr | no data | no data | |
| VP & Head of Chilled Product Business Unit | 0.75yr | no data | no data | |
| VP and Head of Safety & Quality Management Unit | 0.75yr | no data | no data | |
| VP & Head of Strategy Management | 0.75yr | no data | no data | |
| VP and The Head of Group Affairs & Group Office of the Group | 0.75yr | no data | no data | |
| VP and Head of Milk Sourcing & Supply Chain Business Unit | 0.75yr | no data | no data | |
| Financial Controller & Company Secretary | 13.42yrs | no data | no data |
0.8yrs
Average Tenure
47yo
Average Age
Experienced Management: 2319's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 4.08yrs | CN¥11.51m | 0.0096% CN¥ 14.6m | |
| Executive Director | 1.33yrs | CN¥1.48m | no data | |
| Chairman | 1.5yrs | no data | no data | |
| Independent Vice Chairman | no data | no data | no data | |
| Non-Executive Director | 4.5yrs | CN¥150.00k | no data | |
| Independent Non-Executive Director | 14.75yrs | no data | no data | |
| Independent Non-Executive Director | 11.42yrs | CN¥263.00k | no data | |
| Non-Executive Director | 4.5yrs | CN¥150.00k | no data | |
| Non-Executive Director | 2.83yrs | CN¥150.00k | no data | |
| Independent Non-Executive Director | 4yrs | CN¥263.00k | no data |
4.1yrs
Average Tenure
55.5yo
Average Age
Experienced Board: 2319's board of directors are considered experienced (4.1 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 not been meaningfully diluted in the past year.
Top Shareholders
Company Information
China Mengniu Dairy Company Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: China Mengniu Dairy Company Limited
- Ticker: 2319
- Exchange: SEHK
- Founded: 1999
- Industry: Packaged Foods and Meats
- Sector: Food, Beverage & Tobacco
- Market Cap: HK$152.923b
- Shares outstanding: 3.95b
- Website: https://www.mengniuir.com
Number of Employees
Location
- China Mengniu Dairy Company Limited
- COFCO Tower
- 32nd Floor
- Causeway Bay
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CIAD.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2004 |
| 2319 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2004 |
| EZQ | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2004 |
| 2319 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2004 |
| 2319 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2004 |
| CIAD.Y | OTCPK (Pink Sheets LLC) | UNSPONSORD ADR | US | USD | Oct 2008 |
Biography
China Mengniu Dairy Company Limited, an investment holding company, manufactures and distributes dairy products in the People’s Republic of China. The company operates through four segments: Liquid Milk Pr ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/30 12:53 |
| End of Day Share Price | 2020/10/30 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.