Mengniu Earnings: Sales Growth Outpaces Industry Average; Shares Undervalued
Mengniu's revenue grew 8% year over year in the first half, and net profit rose 16%. Excluding an income tax adjustment, net profit would have increased 32%.
China Mengniu Dairy Co Ltd 02319
Bulls Say, Bears Say
Bulls
Mengniu could leverage its liquid milk distribution network to boost sales for fresh milk, a growing, underpenetrated, and higher-margin product category.
Bears
Mengniu invested around 10% of its revenue in advertising and promotions annually, which shows customer switching costs could be low. Elevated selling expenses could erode profitability in the long term if it becomes inefficient.
Trading Information
- Previous Close Price
- HK$17.84
- Day Range
- HK$17.08–17.63
- 52-Week Range
- HK$13.88–19.67
- Bid/Ask
- HK$17.52 / HK$17.53
- Shares Outstanding
- 3.86B
- Market Cap
- HK$67.74B
- Volume/Avg
- 5M / 22M
Key Statistics
- Price/Earnings (Normalized)
- 26.25
- Price/Sales
- 0.73
- Dividend Yield (Trailing)
- 3.35%
- Dividend Yield (Forward)
- 3.35%
- Dividend Payment Schedule
- Jun
- Total Yield
- 4.13%
Company Profile
China Mengniu Dairy is China’s second-largest dairy producer by market share. The company produces a wide range of dairy products, including liquid milk, yogurt, ice cream, infant milk formula, and cheese. Liquid milk, composed of milk, milk beverages, and yogurt, contributed roughly 80% of Mengniu’s revenue in 2024. Flagship lineups include Deluxe, Mengniu Pure Milk, Just Yoghurt, and Yoyi C. Mengniu also owns two infant formula brands, Yashili and Bellamy, as well as Milkground, a cheese brand.
- Sector
- Consumer Defensive
- Industry
- Packaged Foods
- Stock Style Box
- Large Core
- Total Number of Employees
- 38,000
- Website
- https://www.mengniuir.com
Competitors
Valuation
|
Metric
|
02319
|
GIS
|
NSRGY
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.25 | 9.20 | 21.10 |
Price/Book Value | 1.47 | 2.27 | 6.38 |
Price/Sales | 0.73 | 0.93 | 2.07 |
Price/Cash Flow | 7.37 | 5.95 | 11.48 |
Price/Earnings
02319
GIS
NSRGY
Financial Strength
|
Metric
|
02319
|
GIS
|
NSRGY
|
|---|---|---|---|
Quick Ratio | 0.77 | 0.32 | 0.38 |
Current Ratio | 0.88 | 0.70 | 0.83 |
Interest Coverage | 4.52 | −0.28 | 5.96 |
Quick Ratio
02319
GIS
NSRGY
Profitability
|
Metric
|
02319
|
GIS
|
NSRGY
|
|---|---|---|---|
Return on Assets (Normalized) | 5.19% | 5.83% | 7.99% |
Return on Equity (Normalized) | 12.66% | 21.45% | 33.92% |
Return on Invested Capital (Normalized) | 6.81% | 10.10% | 12.26% |
Return on Assets
02319
GIS
NSRGY
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