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China Youran Dairy Group Limited (HK:9858)
:9858
Hong Kong Market

China Youran Dairy Group Limited (9858) AI Stock Analysis

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HK

China Youran Dairy Group Limited

(9858)

Rating:56Neutral
Price Target:
HK$2.50
▼(-6.02%Downside)
The overall stock score is primarily influenced by the company's strong revenue growth, which is offset by profitability concerns and high debt levels. Technical analysis provides a neutral outlook, with slight bullish momentum but no clear trend. The negative P/E ratio and absence of dividends significantly impact the valuation score, highlighting financial risks. Investors should focus on the company's ability to improve profitability and leverage management.

China Youran Dairy Group Limited (9858) vs. iShares MSCI Hong Kong ETF (EWH)

China Youran Dairy Group Limited Business Overview & Revenue Model

Company DescriptionChina Youran Dairy Group Limited (9858) is a leading player in the dairy industry, primarily focused on the upstream dairy supply chain in China. The company is involved in the breeding of dairy cows, production and sale of raw milk, and provision of comprehensive farm management services. By integrating advanced dairy farming techniques and management practices, China Youran Dairy Group aims to enhance the efficiency and productivity of dairy farms, ensuring a steady supply of high-quality raw milk to meet the growing demand in the region.
How the Company Makes MoneyChina Youran Dairy Group Limited generates revenue through several key streams. The primary source of income is the sale of raw milk produced by its own dairy farms. Additionally, the company offers farm management services, including breeding, feeding, and herd management solutions, to other dairy farms, which provides a secondary revenue stream. The company may also engage in strategic partnerships and collaborations with other entities in the dairy industry to expand its market reach and optimize its operational capabilities. These partnerships can enhance the company's ability to maintain a steady supply chain and improve its profitability through economies of scale and increased efficiency.

China Youran Dairy Group Limited Financial Statement Overview

Summary
China Youran Dairy Group Limited shows robust revenue growth but suffers from net losses, highlighting profitability concerns. The high debt-to-equity ratio poses leverage risks, and while operating cash flows are strong, negative free cash flow due to high capital expenditures is concerning.
Income Statement
60
Neutral
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
55
Neutral
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
58
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
20.10B18.69B18.05B15.35B11.78B
Gross Profit
5.78B4.47B4.22B4.69B3.60B
EBIT
4.21B3.00B1.56B2.90B1.99B
EBITDA
4.81B3.42B2.01B3.21B2.24B
Net Income Common Stockholders
-690.89M-1.05B414.77M1.56B1.34B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.67B3.94B2.86B1.02B2.62B
Total Assets
43.66B46.20B43.45B31.96B22.20B
Total Debt
26.49B28.08B23.32B13.18B10.21B
Net Debt
25.66B24.15B22.39B12.17B7.59B
Total Liabilities
31.50B33.10B28.70B17.08B13.14B
Stockholders Equity
11.30B11.83B13.06B13.18B7.82B
Cash FlowFree Cash Flow
-651.89M-3.66B-6.13B-5.53B-2.06B
Operating Cash Flow
5.84B4.39B2.55B2.27B1.71B
Investing Cash Flow
-5.60B-4.34B-10.78B-8.70B-4.75B
Financing Cash Flow
-3.11B2.99B8.05B5.42B5.09B

China Youran Dairy Group Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.66
Price Trends
50DMA
2.49
Positive
100DMA
2.35
Positive
200DMA
1.85
Positive
Market Momentum
MACD
0.07
Positive
RSI
50.12
Neutral
STOCH
34.52
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 2.66 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.49, and above the 200-day MA of 1.85, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 50.12 is Neutral, neither overbought nor oversold. The STOCH value of 34.52 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
HK$1.29B4.016.05%13.36%
75
Outperform
HK$14.21B7.88
1.07%
65
Neutral
$8.77B15.114.67%3.71%3.60%-2.96%
56
Neutral
HK$10.35B-5.98%5.49%37.55%
55
Neutral
HK$2.35B-1.61%0.82%-9.24%-177.19%
46
Neutral
HK$8.84B-13.67%1.16%-3.39%-868.11%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9858
China Youran Dairy Group Limited
2.60
1.41
118.49%
HK:1117
China Modern Dairy Holdings Ltd.
1.09
0.40
57.97%
HK:1432
China Shengmu Organic Milk Ltd
0.27
0.09
50.00%
HK:1431
YuanShengTai Dairy Farm
0.28
0.18
180.00%
HK:2419
Dekon Food And Agriculture Group Class H
86.50
34.14
65.20%

China Youran Dairy Group Limited Corporate Events

China Youran Dairy Group’s AGM Resolutions Passed with Strong Support
May 23, 2025

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.

China Youran Dairy Group Announces 2025 Annual General Meeting Agenda
Apr 25, 2025

China Youran Dairy Group Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Hohhot, Inner Mongolia. Key agenda items include the adoption of financial statements for 2024, re-election of several directors, re-appointment of Deloitte Touche Tohmatsu as auditors, and granting a general mandate to the directors to manage shares. These resolutions aim to ensure continuity in leadership and strategic flexibility in share management, potentially impacting the company’s operational efficiency and stakeholder confidence.

China Youran Dairy Announces Board Reshuffle for Strategic Unity
Mar 28, 2025

China Youran Dairy Group Limited has announced changes in its board of directors, effective March 28, 2025. Mr. Yuan Jun and Mr. Qiu Zhongwei have resigned due to other work commitments, and Mr. Hao Haijun and Ms. Meng Yilan have been appointed as executive directors. Mr. Hao will also serve as the chairman and president, a decision supported by the board for strategic unity despite deviating from corporate governance norms. These changes are expected to enhance strategic decision-making and operational efficiency.

China Youran Dairy Group Announces Board Composition and Committee Roles
Mar 28, 2025

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 announcement also details the membership of various board committees, highlighting the roles and responsibilities of each director. This update is crucial for stakeholders as it outlines the governance structure and leadership roles within the company, potentially impacting its strategic direction and operational oversight.

China Youran Dairy Group Reports Improved Financial Performance for 2024
Mar 28, 2025

China Youran Dairy Group Limited reported its annual results for the year ended December 31, 2024, showing a 7.5% increase in revenue to RMB 20,096,160,000 and a 29.4% rise in gross profit. The company reduced its loss attributable to owners by 34.2% and achieved a 38.3% increase in Cash EBITDA. Despite these improvements, the Board did not recommend a final dividend, indicating a focus on reinvestment or financial consolidation.

China Youran Dairy Group Enters Significant Lease Agreement for Dairy Assets
Mar 28, 2025

China Youran Dairy Group Limited has entered into a lease agreement with Xianyang Zhongshanmu for the lease of assets used in dairy farming. The lease, which begins in December 2024, is considered a discloseable transaction under the Listing Rules due to its size, with the transaction value exceeding 5% but less than 25% of applicable percentage ratios. The agreement includes a 20-year initial term with a possible 5-year renewal, and the rent is set at 8% of the investment amount, capped at RMB400 million.

China Youran Dairy Group Renews Key Agreements with Yili and YouYuan Farm
Mar 28, 2025

China Youran Dairy Group Limited has renewed two key agreements: the Shared Financial Services Framework Agreement with Yili and the Purchase and Sale Framework Agreement with YouYuan Farm. These agreements, effective from January 1, 2026, to December 31, 2028, involve Yili providing accounting services and YouYuan Farm purchasing farming solutions. The transactions are categorized as continuing connected transactions under the Listing Rules, exempt from independent shareholder approval but subject to reporting and review requirements.

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.