China Mengniu Dairy Co (2319) Earnings: FY Net Income Misses Estimates, Reveals Capital Expenditure Details

China Mengniu Dairy Co on Smartkarma

Mengniu Dairy Co, a Chinese dairy company, has been receiving positive analyst coverage on Smartkarma, an independent investment research network. According to Steve Zhou, CFA, Mengniu continues to be a good value play with reasonable valuation, growth, and proactive shareholder returns. This sentiment is echoed in the recent research report by Zhou, where he highlights the positive read-across from Inner Mongolia Yili Industrial Group’s (600887 CH) 3Q23 results and briefing. Yili’s sales grew 3% year-on-year (yoy) and net profit increased by 59% yoy, mainly due to lower raw milk prices, better product mix, cost savings, and a low base. With a valuation of 15 times the estimated 2024 earnings, stable growth of above 10% in net profit, and proactive shareholder returns, China Mengniu Dairy Co remains a good value play for investors.

A look at China Mengniu Dairy Co Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

China Mengniu Dairy Co, one of the leading dairy companies in China, has received an overall score of 2 out of 5 on the Smartkarma Smart Scores. This indicates a mixed long-term outlook for the company, with a score of 4 for growth and 3 for resilience, but lower scores of 2 for both value and momentum. This means that while the company is expected to see strong growth in the future, investors should be cautious of its current value and momentum.

Despite the lower scores in value and momentum, China Mengniu Dairy Co remains a top player in the Chinese dairy market, with a focus on producing and distributing high-quality dairy products. Its core brand, MENGNIU, is well-known and trusted by consumers. With a strong score of 4 for growth, the company is expected to continue expanding its market share and product offerings in the coming years. However, investors should also consider the lower scores in value and dividend, which may indicate potential risks in the company’s financial performance.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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