SEHK:2319

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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


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 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 2319's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.0%

2319

0.7%

HK Food

0.4%

HK Market


1 Year Return

33.2%

2319

19.1%

HK Food

11.0%

HK Market

Return vs Industry: 2319 exceeded the Hong Kong Food industry which returned 19.1% over the past year.

Return vs Market: 2319 exceeded the Hong Kong Market which returned 11% over the past year.


Shareholder returns

2319IndustryMarket
7 Day1.0%0.7%0.4%
30 Day7.2%1.5%7.0%
90 Day7.7%-3.9%6.4%
1 Year34.1%33.2%23.0%19.1%15.5%11.0%
3 Year111.0%107.0%32.0%21.2%4.1%-6.8%
5 Year226.2%214.0%53.3%34.7%34.9%12.3%

Long-Term 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

Valuation

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

13.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 2319 (HK$40.7) is trading below our estimate of fair value (HK$46.86)

Significantly Below Fair Value: 2319 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 2319 is poor value based on its PE Ratio (41.7x) compared to the HK Food industry average (13.2x).

PE vs Market: 2319 is poor value based on its PE Ratio (41.7x) compared to the Hong Kong market (11.1x).


Price to Earnings Growth Ratio

PEG Ratio: 2319 is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: 2319 is overvalued based on its PB Ratio (4.6x) 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?

23.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2319's forecast earnings growth (23.8% per year) is above the savings rate (1.6%).

Earnings vs Market: 2319's earnings (23.8% per year) are forecast to grow faster than the Hong Kong market (21.3% 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 (13.6% 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 (16.7%).


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 (4.5%).


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


Next Steps

Dividend

What is China Mengniu Dairy current dividend yield, its reliability and sustainability?

0.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 2319's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.2%).

High Dividend: 2319's dividend (0.53%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.59%).


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?

0.9yrs

Average management tenure


CEO

Jeffrey Lu (51 yo)

4.25yrs

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 ($USD1.75M) is above average for companies of similar size in the Hong Kong market ($USD838.60K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Minfang Lu
CEO & Executive Director4.25yrsCN¥11.51m0.0096%
CN¥ 14.9m
Fanjie Meng
Executive Director1.5yrsCN¥1.48mno data
Ping Zhang
VP & CFO6.5yrsno datano data
Zhaoxu Zhang
VP & Head of Human Resources Managementno datano datano data
Gao Fei
VP & Head of Room Temperature Product Business Unit0.92yrno datano data
Yan Luo
VP & Head of Developing Business Unit0.92yrno datano data
Yongping Wen
VP & Head of Chilled Product Business Unit0.92yrno datano data
Zhigang Yang
VP and Head of Safety & Quality Management Unit0.92yrno datano data
Yong Zhang
VP & Head of Strategy Management0.92yrno datano data
Pengcheng Li
VP and The Head of Group Affairs & Group Office of the Group0.92yrno datano data
Jiejun Zhao
VP and Head of Milk Sourcing & Supply Chain Business Unit0.92yrno datano data
Wai Cheong Kwok
Financial Controller & Company Secretary13.58yrsno datano data

0.9yrs

Average Tenure

47yo

Average Age

Experienced Management: 2319's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Minfang Lu
CEO & Executive Director4.25yrsCN¥11.51m0.0096%
CN¥ 14.9m
Fanjie Meng
Executive Director1.5yrsCN¥1.48mno data
Lang Chen
Chairman1.67yrsno datano data
Shuge Jiao
Independent Vice Chairmanno datano datano data
Gensheng Niu
Non-Executive Director4.67yrsCN¥150.00kno data
Julian Juul Wolhardt
Independent Non-Executive Director14.92yrsno datano data
Xiaoya Zhang
Independent Non-Executive Director11.58yrsCN¥263.00kno data
Tim Ørting Jørgensen
Non-Executive Director4.67yrsCN¥150.00kno data
Pascal de Petrini
Non-Executive Director3yrsCN¥150.00kno data
Ka Chi Yau
Independent Non-Executive Director4.17yrsCN¥263.00kno data

4.3yrs

Average Tenure

55.5yo

Average Age

Experienced Board: 2319's board of directors are considered experienced (4.3 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 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$155.494b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIAD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2004
2319SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2004
EZQDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2004
2319SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2004
2319SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2004
CIAD.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/03 10:11
End of Day Share Price2020/12/03 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.