China Shengmu Organic Milk Ltd (1432) AI Stock Analysis

• Market Cap: €2.56B
• Dividend Yield: 0.75%
• Average Volume (3M): 9.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.43
• Revenue Growth: -9.24%
• EPS Growth: -177.19%
• Country: HK
• Employees: 2,217
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Agricultural Farm Products
• EPS (TTM): 0.01
• Shares Outstanding: 8,381,295,000
• 10 Day Avg. Volume: 15,550,500
• 30 Day Avg. Volume: 9,894,733
• PEG Ratio: -1.65
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €0.46
• Price Target Upside: 52.94% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$0.50 ▲(66.67%Upside)

The overall stock score of 56 reflects significant challenges in financial performance, with declining revenue, negative margins, and cash flow issues being the most impactful factors. While technical analysis shows positive momentum, overbought indicators suggest caution. Valuation concerns due to a negative P/E ratio and low dividend yield further weigh down the score. Focus on addressing financial health is crucial for improving the stock's outlook.

China Shengmu Organic Milk Ltd Business Overview & Revenue Model

Company Description

China Shengmu Organic Milk Limited, an investment holding company, produces and distributes raw milk and dairy products in the People's Republic of China and internationally. The company was founded in 2009 and is headquartered in Bayannur, the People's Republic of China.

How the Company Makes Money

China Shengmu Organic Milk Ltd generates revenue primarily through the sale of its organic dairy products. The company's revenue model is built on its ability to produce high-quality organic milk using its vertically integrated supply chain. This integration allows the company to maintain control over the entire production process, from organic farming to processing and distribution. Key revenue streams include direct sales to retailers, supermarkets, and through its own distribution channels. Additionally, the company may engage in partnerships with other food and beverage companies to expand its market reach and enhance its product offerings. Factors such as the rising consumer awareness about health benefits associated with organic products and the company's strong brand reputation contribute significantly to its earnings.

China Shengmu Organic Milk Ltd Financial Statement Overview

Summary

The company faces declining revenue, negative growth, and reduced margins, with a notable decrease in net profit margin and ROE. Cash flow challenges are evident with zero operating and free cash flow, posing potential liquidity risks.

Income Statement

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.13B	3.38B	3.18B	2.98B	2.66B
Gross Profit	925.89M	1.03B	1.01B	1.06B	1.03B
EBITDA	809.48M	900.27M	922.50M	997.18M	991.51M
Net Income	-65.50M	86.08M	416.46M	471.71M	406.68M
Balance Sheet
Total Assets	8.46B	8.52B	7.89B	7.13B	6.73B
Cash, Cash Equivalents and Short-Term Investments	697.23M	525.46M	994.08M	579.57M	367.17M
Total Debt	2.33B	2.18B	1.85B	1.68B	1.37B
Total Liabilities	4.29B	4.28B	3.63B	3.24B	3.31B
Stockholders Equity	3.96B	4.02B	4.06B	3.68B	3.20B
Cash Flow
Free Cash Flow	-482.21M	-375.46M	126.00M	224.27M	393.57M
Operating Cash Flow	916.23M	940.28M	1.12B	1.03B	1.09B
Investing Cash Flow	-966.85M	-1.15B	-1.06B	-1.07B	-267.06M
Financing Cash Flow	86.06M	118.43M	-98.82M	238.32M	-625.45M

China Shengmu Organic Milk Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.3 is above the 20-day moving average (MA) of 0.29, above the 50-day MA of 0.26, and above the 200-day MA of 0.20, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 57.17 is Neutral, neither overbought nor oversold. The STOCH value of 43.61 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1431	72 Outperform	HK$1.55B	4.81	6.05%	―	13.36%	―
Sector *	66 Neutral	£10.55B	8.66	3.35%	26.13%	-1.40%	17.93%
9858	63 Neutral	HK$14.17B	―	-5.98%	―	5.49%	37.55%
1117	59 Neutral	HK$9.79B	―	-13.67%	1.07%	-3.39%	-868.11%
1432	56 Neutral	€2.56B	―	-1.61%	0.75%	-9.24%	-177.19%

China Shengmu Organic Milk Ltd Corporate Events

China Shengmu Organic Milk Ltd Successfully Passes AGM Resolutions

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.