China Youran Dairy Group Limited (9858) AI Stock Analysis

• Market Cap: HK$13.70B
• Dividend Yield: N/A
• Average Volume (3M): 33.65M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: 3.07%
• EPS Growth: -64.23%
• Country: HK
• Employees: 12,930
• Sector: Consumer Defensive
• Sector Strength: 44
• Industry: Agricultural Farm Products
• EPS (TTM): -0.09
• Shares Outstanding: 3,892,727,800
• 10 Day Avg. Volume: 55,781,622
• 30 Day Avg. Volume: 33,646,748
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$3.50
• Price Target Upside: 2.34% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: HK$3.50 ▲(2.34% Upside)

The overall stock score is primarily influenced by the company's robust revenue growth, which is overshadowed by significant profitability challenges and high leverage risks. The technical analysis indicates a bearish trend, with the stock trading below key moving averages and nearing oversold conditions. The negative P/E ratio and lack of dividend yield further highlight valuation concerns. The absence of earnings call data and corporate events means these factors do not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding operations and market presence, which is crucial for long-term business sustainability and competitiveness.

Integrated Business Model

A vertically integrated model ensures control over the supply chain, leading to cost efficiencies and a reliable supply of high-quality raw milk, enhancing competitive advantage.

Strategic Partnerships

Long-term supply agreements with major manufacturers provide a steady income stream and reinforce market position, contributing to financial stability.

Negative Factors

Profitability Challenges

Despite revenue growth, ongoing net losses highlight challenges in cost management and profitability, which can affect long-term financial health and investor confidence.

High Leverage

High debt levels can strain financial resources and limit flexibility, posing risks to future investments and growth opportunities if not managed effectively.

Negative Free Cash Flow

Negative free cash flow suggests challenges in funding operations and growth initiatives, potentially leading to increased borrowing or reduced investment capacity.

China Youran Dairy Group Limited Business Overview & Revenue Model

Company Description

China Youran Dairy Group Limited (9858) is a prominent player in the dairy industry, primarily focused on providing comprehensive dairy farming services and producing raw milk. The company operates within the agricultural sector, serving as a crucial link between dairy farmers and the broader dairy market. Its core offerings include breeding, raising, and milking dairy cows, as well as delivering high-quality raw milk to various dairy product manufacturers.

How the Company Makes Money

China Youran Dairy Group Limited generates revenue through several key streams. The primary source of income comes from the sale of raw milk produced by its large-scale dairy farms. The company operates an integrated business model that includes dairy cow breeding, raising, and milking, ensuring a consistent supply of high-quality raw milk. Additionally, Youran Dairy provides value-added services to dairy farmers, such as technical support and management services, which contribute to its revenue. The company also benefits from strategic partnerships and collaborations with major dairy product manufacturers, enhancing its market reach and stability. These partnerships often involve long-term supply agreements, providing a steady and predictable income stream. Overall, Youran Dairy's revenue model capitalizes on its vertically integrated operations and industry expertise to maintain a robust financial performance.

China Youran Dairy Group Limited Financial Statement Overview

Summary

China Youran Dairy Group Limited shows robust revenue growth, but profitability remains a concern with continued net losses. The reliance on debt financing is high, which could pose financial risks if not managed carefully. While operating cash flows are strong, negative free cash flow highlights challenges in managing capital expenditures. Overall, the company needs to focus on improving profitability and managing its leverage to strengthen its financial position.

Income Statement

The company demonstrates a strong revenue growth trajectory, with a notable increase from previous years. However, despite the growth in revenue, the company is experiencing losses in net income, indicating profitability issues. The gross profit margin has improved, reflecting efficiency in cost management, but negative net profit margins highlight challenges in overall profitability.

Balance Sheet

The balance sheet shows a high level of debt compared to equity, as evidenced by a high debt-to-equity ratio. This indicates potential leverage risks. The equity ratio is moderate, suggesting a balanced asset structure. Return on equity is negative, signaling inefficiencies in generating income for shareholders.

Cash Flow

The cash flow analysis reveals a positive operating cash flow, indicating good cash generation from core operations. However, free cash flow remains negative, affected by high capital expenditures. The free cash flow to net income ratio is concerning, primarily due to net losses, impacting cash sustainability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.10B	18.69B	18.05B	15.35B	11.78B
Gross Profit	5.78B	4.47B	4.22B	4.69B	3.60B
EBITDA	4.81B	3.42B	2.01B	3.21B	2.24B
Net Income	-690.89M	-1.05B	414.77M	1.56B	1.34B
Balance Sheet
Total Assets	43.66B	46.20B	43.45B	31.96B	22.20B
Cash, Cash Equivalents and Short-Term Investments	1.67B	3.94B	2.86B	1.02B	2.62B
Total Debt	26.49B	28.08B	23.32B	13.18B	10.21B
Total Liabilities	31.50B	33.10B	28.70B	17.08B	13.14B
Stockholders Equity	11.30B	11.83B	13.06B	13.18B	7.82B
Cash Flow
Free Cash Flow	-651.89M	-3.66B	-6.13B	-5.53B	-2.06B
Operating Cash Flow	5.84B	4.39B	2.55B	2.27B	1.71B
Investing Cash Flow	-5.60B	-4.34B	-10.78B	-8.70B	-4.75B
Financing Cash Flow	-3.11B	2.99B	8.05B	5.42B	5.09B

China Youran Dairy Group Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.42
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9858, the sentiment is Neutral. The current price of 3.42 is below the 20-day moving average (MA) of 3.89, below the 50-day MA of 3.70, and above the 200-day MA of 2.53, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.48 is Neutral, neither overbought nor oversold. The STOCH value of 28.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:9858.

China Youran Dairy Group Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2419	71 Outperform	HK$13.67B	8.60	47.64%	1.16%	―	―
1431	68 Neutral	HK$1.55B	4.92	5.66%	―	13.78%	432.26%
Sector *	62 Neutral	$20.32B	14.51	-2.69%	3.18%	1.92%	-6.57%
1117	56 Neutral	HK$10.42B	―	-21.76%	1.03%	-2.62%	-695.87%
9858	48 Neutral	HK$13.70B	―	-5.81%	―	3.07%	-64.23%
7OM	―	€321.89M	73.00	0.82%	―	―	―

China Youran Dairy Group Limited Corporate Events

China Youran Dairy Group Schedules Board Meeting to Review Interim Results

China Youran Dairy Group Limited has announced a board meeting scheduled for August 22, 2025, to review and approve the interim financial results for the first half of the year and discuss the potential payment of an interim dividend. This meeting could impact the company’s financial strategies and shareholder returns, reflecting its ongoing commitment to transparency and stakeholder engagement.

China Youran Dairy Announces Board Reshuffle

China Youran Dairy Group Limited announced changes in its board of directors and committee compositions, effective June 27, 2025. The resignations of Mr. Xu Jun, Mr. Yang Huicheng, and Mr. Shen Jianzhong were due to other work commitments, and the company expressed gratitude for their contributions. New appointments include Mr. Bai Wenzhong, Ms. Li Lin, and Ms. Huang Lin, who bring extensive experience in financial management and governance, potentially strengthening the company’s strategic oversight and operational effectiveness.

China Youran Dairy Group Announces Board Composition and Governance Structure

China Youran Dairy Group Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board also oversees four committees: Audit, Remuneration, Nomination, and Environmental, Social and Governance, with specific directors assigned roles as chairpersons and members. This announcement highlights the company’s governance structure, which is crucial for maintaining transparency and accountability, potentially impacting stakeholder confidence and the company’s industry positioning.

China Youran Dairy Enters Connected Transaction for Research Center Sale

China Youran Dairy Group Limited has entered into a connected transaction with a subsidiary of Yili, involving the sale and purchase of a Ruminant Nutrition and Health Technology Research Center. The agreement stipulates that the Vendor, a wholly-owned subsidiary of China Youran, will complete the development and construction of the Research Center, with the final consideration expected not to exceed RMB250 million. This transaction is subject to reporting and announcement requirements under the Hong Kong Listing Rules, as it involves connected persons.

China Youran Dairy Group’s AGM Resolutions Passed with Strong Support

China Youran Dairy Group Limited announced that all resolutions were passed at its Annual General Meeting held on May 23, 2025. The meeting saw the re-election of several directors and the adoption of the audited financial statements for the year ended December 31, 2024, with overwhelming shareholder support, indicating strong confidence in the company’s leadership and strategic direction.