China Shengmu Organic Milk Ltd (1432) AI Stock Analysis

• Market Cap: €2.35B
• Dividend Yield: 0.82%
• Average Volume (3M): 5.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.47
• Revenue Growth: -9.24%
• EPS Growth: -177.19%
• Country: HK
• Employees: 2,217
• Sector: Consumer Defensive
• Sector Strength: 63
• Industry: Agricultural Farm Products
• EPS (TTM): >-0.01
• Shares Outstanding: 8,381,295,000
• 10 Day Avg. Volume: 14,727,200
• 30 Day Avg. Volume: 5,640,933
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: HK$0.50 ▲(85.19%Upside)

The stock score reflects significant financial performance challenges, including declining revenue, profitability, and cash flow issues, which are critical areas for the company's future sustainability. Despite strong bullish momentum in technical analysis, overbought signals suggest caution. The valuation is unattractive with a negative P/E ratio. These factors combined result in a moderate stock score.

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 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
	EBIT
779.13M	787.01M	816.75M	892.07M	883.00M
	EBITDA
809.48M	900.27M	922.50M	997.18M	991.51M
	Net Income Common Stockholders
-65.50M	86.08M	416.46M	471.71M	406.68M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
697.23M	525.46M	994.08M	579.57M	367.17M
	Total Assets
8.46B	8.52B	7.89B	7.13B	6.73B
	Total Debt
2.33B	2.18B	1.85B	1.68B	1.37B
	Net Debt
1.64B	1.96B	1.36B	1.15B	1.04B
	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: 0.27
• 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 0.27 is above the 20-day moving average (MA) of 0.23, above the 50-day MA of 0.20, and above the 200-day MA of 0.18, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 67.71 is Neutral, neither overbought nor oversold. The STOCH value of 65.43 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
Sector *	65 Neutral	$8.77B	15.11	4.67%	3.71%	3.60%	-2.96%
1432	55 Neutral	€2.35B	―	-1.61%	0.82%	-9.24%	-177.19%
CIADF		$8.44B	581.08	0.21%	3.26%	―	―
LVZPF		$4.25B	12.43	14.56%	3.87%	―	―
2X2A		€13.99B	7.49	5.62%	4.25%	―	―
1117	46 Neutral	HK$8.84B	―	-13.67%	1.16%	-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.

China Shengmu Organic Milk Ltd Reports 2024 Financial Results Amid Strategic Advances

China Shengmu Organic Milk Ltd reported a decline in revenue and profit for the year ended December 31, 2024, with a notable decrease in sales volume and gross profit. Despite these challenges, the company achieved improvements in milk yield per cow and reduced sales costs through efficiency measures. The company has also been recognized for its strategic financial management and digital transformation efforts, including the development of an advanced cow milk yield calibration model, which enhances operational efficiency.