China Mengniu Dairy
Market Cap
HK$117.3b
Last Updated
2020/02/16 12:31 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.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with excellent balance sheet.
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
-4.2%
2319
1.1%
HK Food
1.7%
HK Market
1 Year Return
18.3%
2319
11.9%
HK Food
-2.9%
HK Market
Return vs Industry: 2319 exceeded the Hong Kong Food industry which returned 11.9% over the past year.
Return vs Market: 2319 exceeded the Hong Kong Market which returned -2.9% over the past year.
Shareholder returns
| 2319 | Industry | Market | |
|---|---|---|---|
| 7 Day | -4.2% | 1.1% | 1.7% |
| 30 Day | -7.3% | -4.0% | -4.2% |
| 90 Day | 2.2% | 7.0% | 4.6% |
| 1 Year | 19.1%18.3% | 14.9%11.9% | 0.7%-2.9% |
| 3 Year | 101.4%97.6% | 49.0%37.9% | 15.3%3.6% |
| 5 Year | 70.9%64.2% | 18.6%6.9% | 15.9%-3.5% |
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
6 days ago | Simply Wall St
What Kind Of Shareholders Own China Mengniu Dairy Company Limited (HKG:2319)?2 weeks ago | Simply Wall St
If You Had Bought China Mengniu Dairy (HKG:2319) Stock Three Years Ago, You Could Pocket A 116% Gain Today1 month ago | Simply Wall St
What Does China Mengniu Dairy Company Limited’s (HKG:2319) 9.6% ROCE Say About The Business?Valuation
Is China Mengniu Dairy undervalued compared to its fair value and its price relative to the market?
25.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2319 (HK$29.8) is trading below our estimate of fair value (HK$40.02)
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 (29.4x) compared to the Food industry average (15.7x).
PE vs Market: 2319 is poor value based on its PE Ratio (29.4x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 2319 is poor value based on its PEG Ratio (9.2x)
Price to Book Ratio
PB vs Industry: 2319 is overvalued based on its PB Ratio (3.9x) compared to the HK Food industry average (0.8x).
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?
3.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2319's forecast earnings growth (3.2% per year) is above the savings rate (1.6%).
Earnings vs Market: 2319's earnings (3.2% per year) are forecast to grow slower than the Hong Kong market (11.7% per year).
High Growth Earnings: 2319's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2319's revenue (8.7% per year) is forecast to grow slower than the Hong Kong market (10.5% per year).
High Growth Revenue: 2319's revenue (8.7% 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 (15.1%).
Next Steps
Past Performance
How has China Mengniu Dairy performed over the past 5 years?
4.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2319 has high quality earnings.
Growing Profit Margin: 2319's current net profit margins (4.8%) are higher than last year (3.8%).
Past Earnings Growth Analysis
Earnings Trend: 2319's earnings have grown by 4.8% per year over the past 5 years.
Accelerating Growth: 2319's earnings growth over the past year (43.4%) exceeds its 5-year average (4.8% per year).
Earnings vs Industry: 2319 earnings growth over the past year (43.4%) exceeded the Food industry 2%.
Return on Equity
High ROE: 2319's Return on Equity (11.7%) is considered low.
Return on Assets
Return on Capital Employed
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¥35.0B).
Long Term Liabilities: 2319's short term assets (CN¥41.4B) exceed its long term liabilities (CN¥7.1B).
Debt to Equity History and Analysis
Debt Level: 2319's debt to equity ratio (43.3%) is considered high.
Reducing Debt: 2319's debt to equity ratio has reduced from 44% to 43.3% over the past 5 years.
Debt Coverage: 2319's debt is well covered by operating cash flow (40.8%).
Interest Coverage: 2319 earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: 2319 has a high level of physical assets or inventory.
Debt Coverage by Assets: 2319's debt is covered by short term assets (assets are 3x debt).
Next Steps
Dividend
What is China Mengniu Dairy's current dividend yield, its reliability and sustainability?
0.67%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 2319's dividend (0.68%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.27%).
High Dividend: 2319's dividend (0.68%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).
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?
5.7yrs
Average management tenure
CEO
Jeffrey Lu (50yo)
3.4yrs
Tenure
CN¥12,621,000
Compensation
Mr. Lu Minfang, 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 ($USD1.81M) is above average for companies of similar size in the Hong Kong market ($USD1.12M).
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 | 3.4yrs | CN¥12.62m | 0.029% CN¥33.8m | |
| Chief Financial Officer | 5.7yrs | no data | no data | |
| Vice President of Human Resources | 0yrs | no data | no data | |
| Vice President of Inner Mongolia Mengniu | 7.4yrs | no data | no data | |
| Executive Director | 0.7yrs | no data | no data | |
| Financial Controller & Company Secretary | 0yrs | no data | no data |
5.7yrs
Average Tenure
51.5yo
Average Age
Experienced Management: 2319's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.4yrs | CN¥12.62m | 0.029% CN¥33.8m | |
| Executive Director | 0.7yrs | no data | no data | |
| Chairman | 0.8yrs | no data | no data | |
| Independent Vice Chairman | 0yrs | no data | no data | |
| Non-Executive Director | 3.8yrs | CN¥179.00k | no data | |
| Independent Non-Executive Director | 14.1yrs | no data | no data | |
| Independent Non-Executive Director | 10.8yrs | CN¥263.00k | no data | |
| Non-Executive Director | 3.8yrs | CN¥150.00k | no data | |
| Non-Executive Director | 2.2yrs | CN¥150.00k | no data | |
| Independent Non-Executive Director | 3.3yrs | CN¥263.00k | no data |
3.4yrs
Average Tenure
55yo
Average Age
Experienced Board: 2319's board of directors are considered experienced (3.4 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$117.283b
- Shares outstanding: 3.94b
- 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 Products, Ice Cream Products, Milk Powder Products, and Others. The Liquid Milk Products segment manufactures and distributes ultra-high temperature milk, milk beverages, and yogurt. The Ice Cream Products segment manufactures and distributes ice cream. The Milk Powder Products segment manufactures and distributes milk powder. The Others segment offers cheese and plant-based nutrition products, as well as engages in trading business. The company also manufactures, distributes, and sells plant-based beverages. It offers its dairy products under the MENGNIU brand. China Mengniu Dairy Company Limited was founded in 1999 and is based in Causeway Bay, Hong Kong.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 12:31 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.