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

• Market Cap: HK$4.23B
• Dividend Yield: 2.52%
• Average Volume (3M): 187.31K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 0.65
• 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: 170,937
• 30 Day Avg. Volume: 187,312
• 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$2.50
• Price Target Upside: 7.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: HK$2.50 ▲(7.76% Upside)

The overall stock score reflects a stable financial position with strong equity and improved profitability, but challenges in cash flow management and stagnant growth. Technical indicators suggest bearish momentum, while valuation metrics are fair, providing moderate attractiveness.

Ausnutria Dairy Corp. Ltd. Business Overview & Revenue Model

Company Description

Ausnutria Dairy Corporation Ltd, an investment holding company, primarily engages in the research and development, milk collection, processing, production, packaging, marketing, and distribution of infant formula and other dairy products. The company operates in two segments, Dairy and Related Products, and Nutrition Products. It offers cow milk-based formula products under the Allnutria, Hyproca Hollary, Hyproca Hypure, Neolac, and Puredo brand names; and goat milk-based infant formula products under the Kabrita brand. The company also produces formula milk powder products on an original equipment manufacturing basis. In addition, it engages in the manufacturing and distribution of nutrition products; development, distribution, and sale of probiotic products; and provision of financing services. The company operates in the People's Republic of China, the European Union, Southeast Asia, Australia, New Zealand, the Middle East, North and South America, and internationally. The company was founded in 2003 and is based in Sheung Wan, Hong Kong. Ausnutria Dairy Corporation Ltd operates as a subsidiary of HongKong Jingang Trade Holding Company Limited.

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 demonstrates stable financial performance with strong equity and improved profitability margins. However, challenges such as stagnant revenue growth and negative free cash flow due to high capital expenditures indicate a need for strategic growth initiatives and better cash flow management.

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: 2.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 2.32 is below the 20-day moving average (MA) of 2.52, below the 50-day MA of 2.53, and above the 200-day MA of 2.13, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.11 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	72 Outperform	HK$60.79B	12.99	25.49%	3.07%	-1.37%	7.96%
9985	67 Neutral	HK$31.85B	23.94	18.11%	2.60%	23.90%	10.72%
0345	65 Neutral	HK$8.52B	37.08	7.71%	1.77%	0.91%	101.66%
1717	64 Neutral	HK$4.23B	14.49	4.53%	2.52%	0.52%	99.51%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
2319	58 Neutral	$56.22B	583.04	-0.74%	3.95%	-7.36%	-107.25%
6186	55 Neutral	HK$35.96B	12.35	10.48%	7.25%	-0.64%	-24.62%

Ausnutria Dairy Corp. Ltd. Corporate Events

Ausnutria Dairy Announces CFO Transition

Ausnutria Dairy Corporation Ltd has announced a change in its executive team with the resignation of Mr. Wang Wensong as Chief Financial Officer, effective June 30, 2025, due to a change in work arrangements. He is succeeded by Ms. Yang Ruijie, who brings extensive experience in financial management from her previous roles at Inner Mongolia Yili Industrial Group and Procter & Gamble. This transition is expected to bring fresh perspectives to the company’s financial strategies and operations.

Ausnutria Dairy Approves Dividend and Re-elects Directors at AGM

Ausnutria Dairy Corporation Ltd. announced the successful passage of all resolutions during its Annual General Meeting held on May 29, 2025. Key resolutions included the approval of a final dividend of HK$0.06 per share for the year ending December 31, 2024, and the re-election of several directors. The company’s strong shareholder participation, with over 84% of issued shares represented, underscores robust investor confidence. This development is likely to positively impact the company’s financial health and reinforce its market position.