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China Shengmu Organic Milk Ltd (HK:1432)
:1432

China Shengmu Organic Milk Ltd (1432) AI Stock Analysis

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HK

China Shengmu Organic Milk Ltd

(Frankfurt:1432)

Rating:58Neutral
Price Target:
HK$0.50
▲(100.00%Upside)
The company's overall stock score is primarily affected by its poor financial performance, characterized by declining revenue, profitability, and cash flow issues. While technical analysis indicates strong market momentum, the negative P/E ratio raises valuation concerns. The absence of earnings call insights and corporate events leaves these areas unaddressed.

China Shengmu Organic Milk Ltd (1432) vs. iShares MSCI Hong Kong ETF (EWH)

China Shengmu Organic Milk Ltd Business Overview & Revenue Model

Company DescriptionChina Shengmu Organic Milk Ltd (1432) is a leading dairy company based in China, specializing in the production and distribution of organic milk products. The company operates in the dairy sector, providing consumers with a range of high-quality organic dairy offerings, including fresh milk, milk powder, and other related products. Emphasizing sustainability and organic farming practices, China Shengmu Organic Milk Ltd is committed to delivering nutritious and safe dairy products to its customers.
How the Company Makes MoneyChina Shengmu Organic Milk Ltd generates revenue primarily through the sale of its organic dairy products. The company's key revenue streams include the domestic and international sale of fresh organic milk, milk powder, and other dairy products. By focusing on organic farming methods, the company taps into a growing market segment that values health and sustainability. Additionally, China Shengmu Organic Milk Ltd may benefit from strategic partnerships with retail chains, distributors, and other stakeholders in the dairy supply chain, ensuring broad market access and distribution channels. The company's commitment to quality and organic certification further enhances its competitive edge, driving consumer demand and contributing to its earnings.

China Shengmu Organic Milk Ltd Financial Statement Overview

Summary
China Shengmu Organic Milk Ltd is facing challenges with declining revenue, profitability, and cash flow. The income statement reveals negative growth and reduced margins, while the balance sheet remains stable with manageable leverage. However, profitability has decreased as indicated by negative ROE. The cash flow statement reflects significant cash flow issues, posing potential liquidity risks. The company needs to address these areas to improve its financial health and sustainability.
Income Statement
55
Neutral
The company experienced a negative revenue growth rate of -7.61% from 2023 to 2024, indicating a decline in sales. Gross profit margin decreased from 30.29% in 2023 to 28.95% in 2024, suggesting reduced efficiency in cost management. The net profit margin turned negative at -2.09% in 2024 from 2.54% in 2023, highlighting profitability challenges. The EBIT margin remained relatively stable at 22.41% in 2024. Overall, the company shows signs of declining performance with shrinking margins and negative growth.
Balance Sheet
70
Positive
The debt-to-equity ratio increased slightly from 0.54 in 2023 to 0.59 in 2024, indicating a moderate rise in leverage but still within a reasonable range. The equity ratio decreased marginally from 47.23% in 2023 to 46.82% in 2024, reflecting a stable balance sheet structure. However, return on equity (ROE) dropped significantly to -1.65% in 2024, suggesting inefficiencies in generating returns on shareholders' equity. Overall, the balance sheet remains stable but shows signs of strain on profitability.
Cash Flow
40
Negative
The company reported zero operating cash flow and free cash flow in 2024, indicating cash flow challenges. The previous year's operating cash flow was positive at 940.28 million, showing a significant decline. The free cash flow to net income ratio was not calculable for 2024 due to zero free cash flow, highlighting potential liquidity concerns. Overall, the cash flow position appears weak, with no clear signs of improvement.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.13B3.38B3.18B2.98B2.66B
Gross Profit925.89M1.03B1.01B1.06B1.03B
EBITDA809.48M900.27M922.50M997.18M991.51M
Net Income-65.50M86.08M416.46M471.71M406.68M
Balance Sheet
Total Assets8.46B8.52B7.89B7.13B6.73B
Cash, Cash Equivalents and Short-Term Investments697.23M525.46M994.08M579.57M367.17M
Total Debt2.33B2.18B1.85B1.68B1.37B
Total Liabilities4.29B4.28B3.63B3.24B3.31B
Stockholders Equity3.96B4.02B4.06B3.68B3.20B
Cash Flow
Free Cash Flow-482.21M-375.46M126.00M224.27M393.57M
Operating Cash Flow916.23M940.28M1.12B1.03B1.09B
Investing Cash Flow-966.85M-1.15B-1.06B-1.07B-267.06M
Financing Cash Flow86.06M118.43M-98.82M238.32M-625.45M

China Shengmu Organic Milk Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.25
Price Trends
50DMA
0.22
Positive
100DMA
0.20
Positive
200DMA
0.19
Positive
Market Momentum
MACD
<0.01
Positive
RSI
53.63
Neutral
STOCH
36.27
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1432, the sentiment is Positive. The current price of 0.25 is below the 20-day moving average (MA) of 0.26, above the 50-day MA of 0.22, and above the 200-day MA of 0.19, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.63 is Neutral, neither overbought nor oversold. The STOCH value of 36.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1432.

China Shengmu Organic Milk Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
HK$1.24B3.726.05%13.36%
60
Neutral
HK$19.93B11.900.81%5.34%2.72%-47.45%
58
Neutral
HK$2.10B-1.61%0.92%-9.24%-177.19%
56
Neutral
HK$10.12B-5.98%5.49%37.55%
44
Neutral
HK$8.05B-13.67%1.30%-3.39%-868.11%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1432
China Shengmu Organic Milk Ltd
0.29
0.10
54.05%
HK:1117
China Modern Dairy Holdings Ltd.
1.03
0.36
53.73%
HK:9858
China Youran Dairy Group Limited
2.68
1.52
131.03%
HK:1431
YuanShengTai Dairy Farm
0.26
0.16
160.00%

China Shengmu Organic Milk Ltd Corporate Events

China Shengmu Organic Milk Ltd Successfully Passes AGM Resolutions
Jun 13, 2025

China Shengmu Organic Milk Ltd announced that all resolutions proposed at its Annual General Meeting held on June 13, 2025, were successfully passed by shareholders. This includes the re-appointment of Ernst & Young as auditors, re-election of directors, and granting of mandates to the board for share allotment and repurchase. The approval of these resolutions signifies strong shareholder support and is likely to positively impact the company’s governance and operational strategies.

China Shengmu Organic Milk Ltd Announces 2025 AGM and Key Resolutions
Apr 23, 2025

China Shengmu Organic Milk Ltd has announced its 2025 Annual General Meeting, scheduled for June 13, 2025, in Hohhot, Inner Mongolia. Key resolutions to be discussed include the adoption of the 2024 financial statements, re-appointment of auditors, re-election of directors, and authorization for the board to manage share allotments. These decisions are crucial for the company’s governance and operational strategy, potentially impacting its market positioning and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 09, 2025