China Shengmu Organic Milk Ltd (HK:1432)
:1432
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China Shengmu Organic Milk Ltd
(1432)
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Rating:45Neutral
Price Target:
HK$0.31
▼(-5.45% Downside)
Action:ReiteratedDate:05/01/26
The score is primarily driven by deteriorating financial performance (revenue declines, margin compression, and net losses) and persistent negative free cash flow. Technicals add further pressure with price below key moving averages and negative MACD, while valuation is constrained by a negative P/E and no dividend yield data.
Positive Factors
Organic upstream farming niche
The company’s upstream focus on organic raw milk creates a durable niche and potential pricing premium versus conventional suppliers. Organic certification and herd management are structural barriers to entry, supporting long-term customer relationships with dairy processors that value traceable, higher-quality inputs.
Negative Factors
Declining revenue trend
Two consecutive years of revenue decline signal weakening demand or contract losses for raw milk, reducing scale economies in farming. Persistent top-line deterioration constrains the company’s ability to recover margins, invest in productivity, and rebuild profitability without clear signs of market share or volume recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic upstream farming niche
The company’s upstream focus on organic raw milk creates a durable niche and potential pricing premium versus conventional suppliers. Organic certification and herd management are structural barriers to entry, supporting long-term customer relationships with dairy processors that value traceable, higher-quality inputs.
Read all positive factors
China Shengmu Organic Milk Ltd (1432) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.68B
Dividend Yield0.69%
Average Volume (3M)9.89M
Price to Earnings (P/E)―
Beta (1Y)0.54
Revenue Growth-3.59%
EPS Growth-459.09%
CountryHK
Employees2,217
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-0.04
Shares Outstanding8,381,295,000
10 Day Avg. Volume11,822,501
30 Day Avg. Volume9,892,705
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)0.72
Price to Sales (P/S)0.88
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
China Shengmu Organic Milk Ltd Business Overview & Revenue Model
Company Description
China Shengmu Organic Milk Ltd (1432) is a leading producer and supplier of organic milk and dairy products based in China. The company specializes in the cultivation of organic dairy farming and is committed to producing high-quality, healthy dai...
How the Company Makes Money
The company primarily makes money by selling raw milk produced from its dairy farms, including organic raw milk sold at a price premium relative to conventional milk when market conditions and customer demand support it. Revenue is generated on a ...
China Shengmu Organic Milk Ltd Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
62
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 2.93B | 3.13B | 3.38B | 3.18B | 2.98B |
| Gross Profit | 404.19M | 736.51M | 925.89M | 1.03B | 1.01B | 1.06B |
| EBITDA | 314.51M | 685.10M | 809.48M | 900.27M | 922.50M | 997.18M |
| Net Income | 29.86M | -363.73M | -65.50M | 86.08M | 416.46M | 471.71M |
Balance Sheet | ||||||
| Total Assets | 8.03B | 7.98B | 8.46B | 8.52B | 7.89B | 7.13B |
| Cash, Cash Equivalents and Short-Term Investments | 998.49M | 1.12B | 697.23M | 525.46M | 994.08M | 579.57M |
| Total Debt | 2.30B | 2.25B | 2.33B | 2.18B | 1.85B | 1.68B |
| Total Liabilities | 3.90B | 4.17B | 4.29B | 4.28B | 3.63B | 3.24B |
| Stockholders Equity | 3.92B | 3.59B | 3.96B | 4.02B | 4.06B | 3.68B |
Cash Flow | ||||||
| Free Cash Flow | 43.64M | -272.00M | -482.21M | -375.46M | 126.00M | 224.27M |
| Operating Cash Flow | 698.60M | 973.98M | 916.23M | 940.28M | 1.12B | 1.03B |
| Investing Cash Flow | -431.81M | -660.63M | -966.85M | -1.15B | -1.06B | -1.07B |
| Financing Cash Flow | -256.52M | -103.84M | 86.06M | 118.43M | -98.82M | 238.32M |
China Shengmu Organic Milk Ltd Technical Analysis
Negative
0.33
Price Trends
0.35
Negative
0.34
Negative
0.34
Negative
Market Momentum
>-0.01
Positive
46.03
Neutral
41.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1432, the sentiment is Negative. The current price of 0.33 is below the 20-day moving average (MA) of 0.34, below the 50-day MA of 0.35, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 41.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1432.
China Shengmu Organic Milk Ltd Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | HK$1.50B | 1.96 | 10.09% | ― | 7.17% | 87.17% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
45 Neutral | HK$2.68B | -7.07 | 0.82% | 0.69% | -3.59% | -459.09% | |
43 Neutral | HK$10.34B | -10.36 | -13.37% | 0.86% | -4.92% | 20.35% | |
41 Neutral | HK$16.18B | -42.17 | -3.91% | ― | 2.80% | 38.43% |
* Consumer Defensive Sector Average
HK:1432
China Shengmu Organic Milk Ltd
0.32
0.15
82.86%
HK:1431
YuanShengTai Dairy Farm
0.32
0.09
39.13%
HK:9858
China Youran Dairy Group Limited
3.86
1.49
62.87%
HK:1117
China Modern Dairy Holdings Ltd.
1.31
0.29
28.43%
China Shengmu Organic Milk Ltd Corporate Events
China Shengmu Sets 2026 AGM to Renew Governance and Share Issuance Mandates
Apr 28, 2026
China Shengmu Organic Milk Limited has called its 2026 annual general meeting for 10:00 a.m. on 12 June 2026 in Hohhot, Inner Mongolia, where shareholders will review the audited consolidated financial statements for the year ended 31 December 202...
China Modern Dairy Updates Market on Conditional Takeover Bid for China Shengmu
Apr 20, 2026
China Modern Dairy and China Shengmu have issued an update on a possible mandatory conditional cash offer for all China Shengmu shares not already held by China Modern Dairy and its affiliate, Start Great Holdings. The offer, to be made through CL...
China Shengmu Swings to Deeper 2025 Loss Despite Efficiency Gains
Mar 25, 2026
China Shengmu Organic Milk Limited reported essentially flat operating income of RMB3.34 billion for 2025, but saw gross profit fall 18.3% and a significantly wider loss attributable to shareholders of RMB373.4 million. Despite improvements in key...
China Shengmu Names New CFO as Part of Leadership Rotation
Mar 25, 2026
China Shengmu Organic Milk Limited has announced that chief financial officer Niu Yuesheng will resign from his role effective 25 March 2026, citing an internal rotation of positions within the group. The board noted that Niu has no disagreement w...
China Modern Dairy Advances Conditional Cash Offer for China Shengmu Amid Regulatory Review
Mar 20, 2026
China Modern Dairy is pursuing a possible mandatory conditional cash offer to acquire all issued shares of China Shengmu Organic Milk that it does not already own, advancing a deal that could further consolidate their positions in China’s da...
China Shengmu Sets March Board Meeting to Approve 2025 Results and Mull Dividend
Mar 5, 2026
China Shengmu Organic Milk Limited has scheduled a board meeting for 25 March 2026 to review and approve the group’s final results for the financial year ended 31 December 2025. The Hong Kong-listed organic dairy producer will also consider ...
China Shengmu Warns of Sharply Wider 2025 Loss on Grassland Impairment
Feb 27, 2026
China Shengmu Organic Milk has issued a profit warning, telling investors it expects a sharply wider loss of RMB350 million to RMB390 million for 2025, compared with a RMB65.5 million loss in 2024, mainly due to a RMB300 million to RMB330 million ...
China Modern Dairy Updates Market on Conditional Takeover Bid for China Shengmu
Feb 20, 2026
China Modern Dairy has issued a joint monthly update with China Shengmu Organic Milk on a possible mandatory conditional cash offer to acquire all issued shares of China Shengmu not already owned or agreed to be acquired by China Modern Dairy and ...
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.