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

• Market Cap: HK$4.20B
• Dividend Yield: 1.36%
• Average Volume (3M): 368.73K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.69
• Revenue Growth: -1.56%
• EPS Growth: 30.87%
• Country: HK
• Employees: 3,288
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 0.06
• Shares Outstanding: 1,778,144,900
• 10 Day Avg. Volume: 740,946
• 30 Day Avg. Volume: 368,730
• PEG Ratio: -0.38
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.24
• 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$2.00
• Price Target Upside: -13.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: HK$2.50 ▲(8.70%Upside)

The company's strong financial position and bullish technical indicators contribute positively to the stock score. However, overbought technical conditions present short-term risks. While the valuation is fair, the low dividend yield and negative free cash flow highlight areas for improvement. The absence of earnings call and corporate events data leaves some uncertainty in future guidance and strategic direction.

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-based products, with a significant focus on infant formula. The company offers a diverse portfolio of products under various brand names, catering to different market segments and consumer preferences. Key revenue streams include the sale of cow milk-based and goat milk-based infant formulas, which are distributed through a network of retail and online channels. Ausnutria invests in research and development to differentiate its products, enhancing their nutritional content and market appeal. Additionally, the company benefits from strategic partnerships and collaborations with research institutions and other companies in the dairy sector, which contribute to its product innovation and market expansion efforts.

Ausnutria Dairy Corp. Ltd. Financial Statement Overview

Summary

Ausnutria Dairy Corp. Ltd. demonstrates a stable financial position with strong equity but faces challenges in cash flow management. Profitability and margin improvements are noteworthy, but growth has been flat, indicating a need for strategic initiatives. The balance sheet is robust, though liquidity needs attention due to declining cash reserves. Overall, the company is well-positioned but should focus on enhancing operational efficiency and cash flow management to sustain future growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.40B	7.38B	7.80B	8.87B	7.99B
Gross Profit	3.11B	2.85B	3.39B	4.47B	3.98B
EBITDA	645.26M	503.39M	529.50M	1.19B	1.50B
Net Income	235.97M	174.39M	216.53M	1.04B	1.00B
Balance Sheet
Total Assets	9.66B	10.03B	9.80B	9.51B	9.25B
Cash, Cash Equivalents and Short-Term Investments	1.42B	2.04B	1.87B	2.26B	1.86B
Total Debt	2.25B	2.42B	1.56B	1.30B	1.09B
Total Liabilities	3.88B	4.28B	4.23B	4.02B	4.10B
Stockholders Equity	5.72B	5.69B	5.65B	5.54B	5.17B
Cash Flow
Free Cash Flow	-86.32M	-459.31M	-1.06B	514.93M	623.59M
Operating Cash Flow	299.37M	224.71M	-357.54M	1.07B	1.13B
Investing Cash Flow	-899.16M	-740.92M	-723.98M	-606.57M	-402.58M
Financing Cash Flow	-273.59M	682.45M	664.11M	-34.09M	-494.87M

Ausnutria Dairy Corp. Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.30
• 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:1717, the sentiment is Positive. The current price of 2.3 is above the 20-day moving average (MA) of 2.20, above the 50-day MA of 2.04, and above the 200-day MA of 1.97, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 58.56 is Neutral, neither overbought nor oversold. The STOCH value of 41.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Sector *	65 Neutral	$27.19B	15.58	-4.44%	2.56%	1.05%	4.97%
1717	62 Neutral	HK$4.20B	16.28	4.14%	1.36%	-1.56%	30.87%
WWNTF	―	$8.53B	13.98	25.49%	8.56%	―	―
CIADF	―	$8.58B	601.35	0.21%	1.10%	―	―
VTSYF	―	$1.30B	41.81	7.71%	0.81%	―	―
9985	68 Neutral	HK$30.19B	24.56	18.29%	4.00%	26.27%	18.86%
6186	55 Neutral	HK$43.11B	11.13	14.06%	1.59%	4.18%	3.39%

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.

Ausnutria Dairy Corp. Ltd. Announces 2025 AGM and Key Resolutions

Ausnutria Dairy Corp. Ltd. has announced its upcoming annual general meeting (AGM) scheduled for May 29, 2025, in Changsha City, China. Key agenda items include the re-election of several directors, approval of a final dividend of HK$0.06 per share, and the re-appointment of PricewaterhouseCoopers as auditors. Additionally, a general mandate for the directors to allot, issue, and dispose of shares is proposed. These resolutions aim to strengthen the company’s governance and financial strategies, potentially impacting shareholder value and market positioning.