Ausnutria Dairy Corp. Ltd. (1717) AI Stock Analysis

• Market Cap: HK$3.75B
• Dividend Yield: 2.9%
• Average Volume (3M): 187.34K
• Price to Earnings (P/E): 12.8
• Beta (1Y): 0.62
• Revenue Growth: 0.52%
• EPS Growth: 99.51%
• Country: HK
• Employees: 3,288
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 0.11
• Shares Outstanding: 1,778,144,900
• 10 Day Avg. Volume: 165,000
• 30 Day Avg. Volume: 187,345
• PEG Ratio: 0.39
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.42
• P/FCF Ratio: -36.22
• 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$2.99
• Price Target Upside: 44.44% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$2.00 ▼(-3.38% Downside)

The overall stock score is primarily influenced by the company's stable financial position and reasonable valuation. However, bearish technical indicators and challenges in cash flow management weigh down the score. The lack of growth initiatives and liquidity concerns are significant risks.

Ausnutria Dairy Corp. Ltd. Business Overview & Revenue Model

Company Description

Ausnutria Dairy Corp. Ltd. (1717) is a leading dairy company based in China that specializes in the production, distribution, and sale of dairy products. The company operates in the infant formula sector and is renowned for its high-quality milk powder products. It offers a range of dairy products under various brand names, catering to different consumer needs, including infant and adult nutrition products. Ausnutria extends its reach across numerous international markets, leveraging its global presence and production facilities to enhance its product offerings.

How the Company Makes Money

Ausnutria Dairy Corp. Ltd. generates revenue primarily through the sale of its dairy products, with a significant focus on infant formula. The company's revenue model is based on manufacturing and distributing a diversified portfolio of high-quality milk powder products that cater to various age groups and nutritional needs. Key revenue streams include sales from its established brands such as Kabrita, Hyproca, and Neolac, which are well-regarded in both domestic and international markets. The company also benefits from strategic partnerships and collaborations that enhance its research and development capabilities, enabling it to innovate and expand its product lines. Additionally, Ausnutria invests in marketing and distribution networks to strengthen its market position and drive sales growth across its operational territories.

Ausnutria Dairy Corp. Ltd. Financial Statement Overview

Summary

The company shows stable financials with strong equity and improved profitability margins. However, cash flow management is a concern due to negative free cash flow and stagnant revenue growth, indicating a need for strategic growth initiatives.

Income Statement

The company has shown consistent revenue generation with a slight increase in 2024 compared to previous years. Gross Profit Margin remained strong at 41.98% in 2024, reflecting a good cost management strategy. Net Profit Margin improved to 3.19% in 2024 from 2.36% in 2023, indicating enhanced profitability. However, EBIT Margin and EBITDA Margin are relatively low at 5.16% and 8.71% respectively, suggesting operational efficiency could be improved. The revenue growth has been stagnant, indicating a need for strategic growth initiatives.

Balance Sheet

The balance sheet shows a stable position with a Debt-to-Equity Ratio of 0.39, suggesting conservative leverage. Return on Equity (ROE) is relatively low at 4.12% in 2024, indicating modest returns to shareholders. The Equity Ratio remains strong at 59.23%, highlighting a solid capital structure with a significant proportion of assets financed by equity. The company has maintained a healthy cash reserve, although there is a slight decline in cash and cash equivalents over the years, which might restrict liquidity.

Cash Flow

The cash flow position is mixed, with Operating Cash Flow to Net Income Ratio of 1.27 in 2024, indicating good cash conversion. However, Free Cash Flow has been negative, reflecting high capital expenditures that have not been matched by operational inflows, potentially affecting long-term cash sustainability. The Free Cash Flow to Net Income Ratio is negative, signaling concerns over cash efficiency and capital expenditure management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.66B	7.40B	7.38B	7.80B	8.58B	7.99B
Gross Profit	2.32B	3.11B	2.85B	3.39B	4.15B	3.98B
EBITDA	513.11M	645.26M	503.39M	529.50M	1.19B	1.50B
Net Income	180.81M	235.97M	174.39M	216.53M	763.79M	1.00B
Balance Sheet
Total Assets	10.50B	9.66B	10.03B	9.80B	9.51B	9.25B
Cash, Cash Equivalents and Short-Term Investments	1.01B	1.42B	2.04B	1.87B	2.26B	1.86B
Total Debt	2.73B	2.25B	2.42B	1.56B	1.30B	1.09B
Total Liabilities	4.31B	3.88B	4.28B	4.23B	4.02B	4.10B
Stockholders Equity	6.13B	5.72B	5.69B	5.65B	5.54B	5.17B
Cash Flow
Free Cash Flow	-168.74M	-86.32M	-459.31M	-1.06B	514.93M	623.59M
Operating Cash Flow	92.45M	299.37M	224.71M	-357.54M	1.07B	1.13B
Investing Cash Flow	-770.46M	-899.16M	-740.92M	-723.98M	-606.57M	-402.58M
Financing Cash Flow	-325.59M	-273.59M	682.45M	664.11M	-34.09M	-494.87M

Ausnutria Dairy Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1717, the sentiment is Negative. The current price of 2.07 is below the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.43, and below the 200-day MA of 2.15, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 24.40 is Positive, neither overbought nor oversold. The STOCH value of 3.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1717.

Ausnutria Dairy Corp. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0151	67 Neutral	$60.08B	12.84	25.49%	3.13%	-1.37%	7.96%
9985	66 Neutral	HK$27.13B	20.39	18.11%	4.69%	23.90%	10.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
1717	59 Neutral	HK$3.75B	12.85	4.53%	2.90%	0.52%	99.51%
0345	57 Neutral	HK$7.78B	33.84	7.71%	1.91%	0.91%	101.66%
2319	56 Neutral	$54.94B	―	-0.74%	3.86%	-7.36%	-107.25%
6186	55 Neutral	HK$38.13B	13.10	10.48%	6.52%	-0.64%	-24.62%

Ausnutria Dairy Corp. Ltd. Corporate Events

Ausnutria Dairy Clarifies Probiotics Supply Agreement Caps

Ausnutria Dairy Corporation Ltd announced a clarification regarding its Probiotics Supply Framework Agreement, specifying the annual transaction caps for the financial years ending in 2025, 2026, and 2027. The caps are set at RMB10 million, RMB40 million, and RMB65 million, respectively, indicating a significant increase over the period, which may impact the company’s market positioning and operations.

The most recent analyst rating on (HK:1717) stock is a Hold with a HK$2.00 price target. To see the full list of analyst forecasts on Ausnutria Dairy Corp. Ltd. stock, see the HK:1717 Stock Forecast page.

Ausnutria Dairy Signs Probiotics Supply Agreement with Yili Industrial

Ausnutria Dairy Corporation Ltd. has entered into a Probiotics Supply Framework Agreement with Yili Industrial, a controlling shareholder, to supply probiotics and related products until December 2027. This agreement, classified as a continuing connected transaction under Hong Kong’s Listing Rules, does not require independent shareholders’ approval but is subject to reporting and annual review requirements, indicating a strategic partnership that could enhance Ausnutria’s market positioning and operational scope.

The most recent analyst rating on (HK:1717) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Ausnutria Dairy Corp. Ltd. stock, see the HK:1717 Stock Forecast page.

Ausnutria Dairy Reports Strong Interim Financial Results for 2025

Ausnutria Dairy Corporation Ltd reported its unaudited interim financial results for the six months ending June 30, 2025, showing a 5.6% increase in revenue to RMB 3,886.8 million. The company also experienced a 29.7% rise in EBITDA and a 24.1% increase in profit attributable to equity holders, indicating strong operational performance despite a slight decline in gross profit margin.

The most recent analyst rating on (HK:1717) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Ausnutria Dairy Corp. Ltd. stock, see the HK:1717 Stock Forecast page.

Ausnutria Dairy Revises 2025 Procurement Caps with Yili Industrial

Ausnutria Dairy Corp. Ltd. has announced a revision of the existing annual caps under its 2025 Procurement Framework Agreement with Yili Industrial. The company has identified that the transaction amount for the first seven months of 2025 has nearly reached the annual cap, prompting a supplemental agreement to increase the cap for 2025 from RMB 40 million to RMB 80 million. This adjustment considers factors such as historical transaction amounts, expected increases in procurement, and potential rises in raw material costs. The revision ensures compliance with the Listing Rules and reflects the company’s strategic response to growing procurement demands.

The most recent analyst rating on (HK:1717) stock is a Hold with a HK$2.50 price target. To see the full list of analyst forecasts on Ausnutria Dairy Corp. Ltd. stock, see the HK:1717 Stock Forecast page.

Ausnutria Dairy to Review Interim Results and Dividend Proposal

Ausnutria Dairy Corporation Ltd has announced that its Board of Directors will meet on 27 August 2025 to discuss and approve the interim results for the first half of the year and consider the recommendation of an interim dividend. This meeting is significant as it may impact the company’s financial strategies and shareholder returns, reflecting its operational performance and market positioning.