China Shengmu Organic Milk Ltd (1432) AI Stock Analysis

• Market Cap: HK$2.39B
• Dividend Yield: 0.81%
• Average Volume (3M): 7.98M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -9.24%
• EPS Growth: -177.19%
• Country: HK
• Employees: 2,217
• Sector: Consumer Defensive
• Sector Strength: 57
• Industry: Agricultural Farm Products
• EPS (TTM): >-0.01
• Shares Outstanding: 8,381,295,000
• 10 Day Avg. Volume: 4,517,800
• 30 Day Avg. Volume: 7,979,466
• PEG Ratio: -0.51
• Price to Book (P/B): 0.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.01
• 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: HK$0.46
• Price Target Upside: 58.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: HK$0.50 ▲(72.41%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 Business Overview & Revenue Model

Company Description

China 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 Money

China 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

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: 0.29
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 0.29 is above 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 bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 68.04 is Neutral, neither overbought nor oversold. The STOCH value of 70.06 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	70 Neutral	HK$1.20B	3.86	6.05%	―	13.36%	―
Sector *	60 Neutral	HK$19.91B	11.86	0.81%	5.24%	2.72%	-47.45%
9858	58 Neutral	HK$10.43B	―	-5.98%	―	5.49%	37.55%
1432	58 Neutral	HK$2.39B	―	-1.61%	0.81%	-9.24%	-177.19%
1117	53 Neutral	HK$8.13B	―	-13.67%	1.29%	-3.39%	-868.11%

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.

China Shengmu Organic Milk Ltd Announces 2025 AGM and Key Resolutions

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.