China Shengmu Organic Milk Ltd (HK:1432)
:1432
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China Shengmu Organic Milk Ltd
(1432)
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Rating:53Neutral
Price Target:
HK$0.40
▲(20.00% Upside)
Action:ReiteratedDate:01/27/26
The score is primarily held back by weakening financial performance—declining revenue, a shift to negative profitability, and zero operating/free cash flow in 2024. Technicals are supportive with the price above major moving averages, but overbought RSI reduces the technical score. Valuation is a notable drag due to the very high P/E and no dividend yield provided.
Positive Factors
Vertical integration & organic certification
Managing the full supply chain from breeding to processing secures quality control, traceability and input cost visibility. Organic certification supports premium pricing and customer trust, bolstering long-term margin resilience and competitive differentiation in health-focused markets.
Negative Factors
Declining revenue and negative net margin
A meaningful YoY revenue decline and a swing to negative net margin point to structural demand, pricing or cost issues. Persistent top-line weakness erodes scale economics, restricts reinvestment capacity and undermines sustainable profitability unless business mix or cost structure improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & organic certification
Managing the full supply chain from breeding to processing secures quality control, traceability and input cost visibility. Organic certification supports premium pricing and customer trust, bolstering long-term margin resilience and competitive differentiation in health-focused markets.
Read all positive factors
China Shengmu Organic Milk Ltd (1432) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.85B
Dividend Yield0.69%
Average Volume (3M)9.89M
Price to Earnings (P/E)―
Beta (1Y)0.53
Revenue Growth-7.11%
EPS GrowthN/A
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 Ratio0.11
Price to Book (P/B)0.33
Price to Sales (P/S)0.42
P/FCF Ratio-2.69
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
China Shengmu Organic Milk Ltd generates revenue primarily through the sale of its organic milk and dairy products to both domestic and international markets. The company operates a vertically integrated business model, where it manages the entire...
China Shengmu Organic Milk Ltd Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
70
Positive
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.08B | 3.13B | 3.38B | 3.18B | 2.98B | 2.66B |
| Gross Profit | 404.19M | 925.89M | 1.03B | 1.01B | 1.06B | 1.03B |
| EBITDA | 314.51M | 809.48M | 900.27M | 922.50M | 997.18M | 991.51M |
| Net Income | 29.86M | -65.50M | 86.08M | 416.46M | 471.71M | 406.68M |
Balance Sheet | ||||||
| Total Assets | 8.03B | 8.46B | 8.52B | 7.89B | 7.13B | 6.73B |
| Cash, Cash Equivalents and Short-Term Investments | 998.49M | 697.23M | 525.46M | 994.08M | 579.57M | 367.17M |
| Total Debt | 2.30B | 2.33B | 2.18B | 1.85B | 1.68B | 1.37B |
| Total Liabilities | 3.90B | 4.29B | 4.28B | 3.63B | 3.24B | 3.31B |
| Stockholders Equity | 3.92B | 3.96B | 4.02B | 4.06B | 3.68B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 43.64M | -482.21M | -375.46M | 126.00M | 224.27M | 393.57M |
| Operating Cash Flow | 698.60M | 916.23M | 940.28M | 1.12B | 1.03B | 1.09B |
| Investing Cash Flow | -431.81M | -966.85M | -1.15B | -1.06B | -1.07B | -267.06M |
| Financing Cash Flow | -256.52M | 86.06M | 118.43M | -98.82M | 238.32M | -625.45M |
China Shengmu Organic Milk Ltd Technical Analysis
Negative
0.33
Price Trends
0.35
Negative
0.34
Negative
0.34
Positive
Market Momentum
>-0.01
Negative
46.46
Neutral
42.22
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 neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 46.46 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 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$1.64B | 2.52 | 5.59% | ― | 13.78% | 432.26% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | HK$10.73B | -10.36 | -23.27% | 0.86% | -2.69% | -695.87% | |
54 Neutral | HK$15.34B | -7.50 | -5.88% | ― | 3.07% | -64.23% | |
53 Neutral | HK$2.85B | -7.07 | 0.82% | 0.69% | -7.11% | ― |
* Consumer Defensive Sector Average
HK:1432
China Shengmu Organic Milk Ltd
0.34
0.14
69.15%
HK:1431
YuanShengTai Dairy Farm
0.35
0.08
32.69%
HK:9858
China Youran Dairy Group Limited
3.80
1.32
53.23%
HK:1117
China Modern Dairy Holdings Ltd.
1.38
0.26
23.21%
China Shengmu Organic Milk Ltd Corporate Events
Shengmu Shareholders Clear Key Supply Framework Deals at Extraordinary Meeting
Dec 30, 2025
China Shengmu Organic Milk Limited announced that shareholders approved all resolutions at its extraordinary general meeting held on 30 December 2025, including the 2026 Raw Fresh Milk Supply Framework Agreement with a subsidiary of China Mengniu ...
China Modern Dairy Says Conditions for Shengmu Takeover Offer Still Unsatisfied
Dec 19, 2025
China Modern Dairy Holdings Ltd has provided a monthly update on its possible mandatory conditional cash offer, to be made via CLSA, for all issued shares of China Shengmu Organic Milk Limited not already owned by Modern Dairy and its concert part...
China Shengmu Organic Milk Ltd Announces Key Framework Agreements
Dec 11, 2025
China Shengmu Organic Milk Ltd has announced an extraordinary general meeting to approve two key framework agreements. The first agreement involves the supply of raw fresh milk to Inner Mongolia Mengniu Dairy for a three-year term starting January...
China Shengmu Organic Milk Ltd Prepares for EGM to Approve Key Supply Agreements
Dec 9, 2025
China Shengmu Organic Milk Ltd has announced the closure of its register of members in preparation for an Extraordinary General Meeting (EGM) scheduled for December 30, 2025. This meeting will address the approval of two significant framework agre...
China Shengmu Renews Key Milk Supply Agreement with Mengniu
Nov 24, 2025
China Shengmu Organic Milk Ltd has announced the renewal of its Raw Fresh Milk Supply Framework Agreement with Inner Mongolia Mengniu, a subsidiary of China Mengniu, for a three-year term starting from January 2026. This agreement, which is subjec...
China Shengmu Enters New Supply Framework Agreement with Dabeinong
Nov 19, 2025
China Shengmu Organic Milk Ltd has entered into a new 2026 Dabeinong Products and Services Supply Framework Agreement with Dabeinong Group and Yiyingmei Dairy, effective from January 1, 2026, to December 31, 2028. This agreement aims to enhance th...
China Modern Dairy Proposes Acquisition of China Shengmu Organic Milk
Nov 10, 2025
China Modern Dairy Holdings Ltd has announced a possible mandatory conditional cash offer to acquire all issued shares of China Shengmu Organic Milk Ltd, not already owned by them or Start Great Holdings Limited. An independent board committee has...
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.