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Consumer Non-Durables

China Mengniu Dairy Co., Ltd.

  • 22.15 HKD
  • +0.55
  • +2.55%
  • Hong Kong
    Aug 17, 2018
  • Ticker
    HKG(2319)
  • Prev. close
    21.60
  • Market cap (HKD)
    84,832.56M
  • Market cap (USD)
    10,807.24M
  • Shares
    3,927.43M

Company Background

China Mengniu Dairy is a Chinese manufacturer and distributor of dairy products, including raw milk, yogurt, milk beverages, ice cream and milk powder. The state-owned company held the largest share of the domestic milk market until 2014. Mengniu Dairy became the first dairy products maker to be included on the Hang Seng Index in 2014.

In August 1999, Mengniu Dairy was established as a private company in Hohhot, the Inner Mongolia Autonomous Region. In 2009, however, China National Cereals, Oils and Foodstuffs (COFCO), China's largest state-owned agricultural conglomerate, acquired a stake in the company, becoming its biggest shareholder. It listed on the Hong Kong Stock Exchanges and Clearing (HKEX) in June 2004. It has more than 50 plants in over 20 provinces in China, with an annual production capacity of more than 8.1 million tons.

The company has formed strategic alliances with makers of dairy products in Denmark, France, the U.S. and New Zealand. In 2008, it was revealed that milk powder manufactured by Chinese dairy company Sanlu Group was contaminated with the toxic chemical melamine. Mengniu Dairy's milk powder was also found to be tainted with the substance, shaking the Chinese public's sense of safety regarding domestic milk powder.

It plans to expand its business overseas. In April, the company announced its strategic alliance with Shanghai Disney Resort, scheduled to open in the spring of 2016. It aims to increase its name recognition among overseas visitors by selling its own-brand milk and ice cream, along with other products, at the theme park.

Business Summary

China Mengniu Dairy Co., Ltd. is an investment holding company, which engages in the manufacture and distribution of dairy products. It operates through the following segments: Liquid Milk Products, Ice Cream Products, Milk Powder Products, and Others. The Liquid Milk Products segment produces and distributes ultra-high temperature milk, milk beverages, and yogurt. The Ice Cream Products segment offers its products under the Deluxe, Mood for Green, Ice+, and Suibian brands. The Milk Powder Products segment includes infant milk formula brand products such as Milex, Meimengyi, Ruipuen Oushi Series, Yashily Super a-Golden, Yashili Golden Ambery, Arla Merla, Arla Baby & Me, and Dumex Series. The Others segment comprises of cheese products, plant-based nutrition product, and trading business. The company was founded on February 16, 2004 and is headquartered in Hong Kong.

Financial Highlights

Dec 2017 HKDUSD
Revenue69,364.65M8,901.10M
Gross Profit24,451.87M3,137.74M
Operating income3,725.90M478.12M
Income before tax3,026.80M388.41M
Net income2,361.33M303.01M
EBITDA5,659.47M726.24M
Diluted EPS0.600.07
Dividends Per Share0.140.01
Total Assets69,792.36M8,927.93M
Total liabilities36,364.06M4,651.74M
Total equity27,135.19M3,471.17M
Operating cash flow7,354.52M943.75M
Currency in HKDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 54,704.19M 62,988.44M 60,473.25M 62,836.77M 69,364.65M
Gross Profit 14,763.11M 19,427.13M 18,950.56M 20,589.67M 24,451.87M
Operating income 2,074.82M 3,144.18M 3,147.04M 1,791.84M 3,725.90M
Income before tax 2,781.46M 3,964.37M 3,737.65M -539.09M 3,026.80M
Net income 2,027.23M 2,958.63M 2,919.85M -877.66M 2,361.33M
EBITDA 3,611.07M 4,832.77M 4,896.46M 3,631.29M 5,659.47M
Diluted EPS 0.56 0.75 0.74 -0.22 0.60
Dividends Per Share 0.12 0.17 0.16 0.10 0.14
Total Assets 51,666.13M 58,849.85M 60,454.10M 54,805.24M 69,792.36M
Total liabilities 28,341.14M 27,896.26M 28,326.99M 25,757.16M 36,364.06M
Total equity 19,674.04M 26,861.23M 26,419.73M 23,255.44M 27,135.19M
Operating cash flow 4,564.93M 4,645.07M 3,150.38M 5,752.57M 7,354.52M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 7,052.56M 8,122.63M 7,800.41M 8,094.95M 8,901.10M
Gross Profit 1,903.28M 2,505.21M 2,444.42M 2,652.46M 3,137.74M
Operating income 267.49M 405.45M 405.93M 230.83M 478.12M
Income before tax 358.59M 511.22M 482.11M -69.44M 388.41M
Net income 261.35M 381.52M 376.63M -113.06M 303.01M
EBITDA 465.54M 623.20M 631.59M 467.80M 726.24M
Diluted EPS 0.07 0.09 0.09 -0.02 0.07
Dividends Per Share 0.01 0.02 0.02 0.01 0.01
Total Assets 6,663.37M 7,588.78M 7,800.37M 7,068.77M 8,927.93M
Total liabilities 3,655.15M 3,597.26M 3,655.02M 3,322.15M 4,651.74M
Total equity 2,537.35M 3,463.79M 3,408.93M 2,999.48M 3,471.17M
Operating cash flow 588.51M 599.00M 406.36M 741.07M 943.75M

Valuation Measures

Dec 2017
PER38.33
ROA3.79%
ROE9.37%
Operating margin5.37%
Profit margin3.40%

Key executives

  • Chief Executive Officer & Executive Director: Min Fang Lu
  • Chief Financial Officer: Ping Zhang
  • Vice President-Research, Development & Innovation: Wei Zu Yu
  • Secretary & Financial Controller: Wai Cheong Kwok
  • Head-Investor Relations: Willow Wu

Shareholders

  • China State-Owned Assets Supervision & Admn Commission (31.4%)
  • First State Investments (Hong Kong) Ltd. (4.6%)
  • FIL Investment Advisors (UK) Ltd. (2.2%)
  • T. Rowe Price International Ltd. (2.1%)
  • Genesis Investment Management LLP (2.1%)
  • The Vanguard Group, Inc. (1.7%)
  • BlackRock Fund Advisors (1.4%)
  • FIL Investment Management (Hong Kong) Ltd. (1.2%)
  • Schroder Investment Management Ltd. (1.1%)
  • Norges Bank Investment Management (1.0%)

Contact Details

  • Website:http://www.mengniuir.com
  • Address: 32/F, COFCO Tower, 2, 262 Gloucester Road, Hong Kong, Hong Kong
  • Phone: +852.2180.9050

Related Companies

  • Tian Jin New Value Supply Chain Co. Ltd.
  • Wuhan Mengniu Dairy Co., Ltd.
  • Future Discovery Ltd.
  • China Mengniu Investment Co. Ltd.
  • China Mengniu International Co. Ltd.
  • Mengniu Dairy (Shenyang) Co. Ltd.
  • Mengniu Dairy (Qiqihar) Co. Ltd.
  • China Modern Dairy Holdings Ltd.
  • Yashili International Holdings Ltd.
  • China Dairy (Mauritius) Ltd.
  • Mengniu Dairy (Ma'anshan) Co., Ltd.
  • Mengniu Dairy (Beijing) Co., Ltd.
  • Inner Mongolia Mengniu Dairy (Group) Co., Ltd.

Competitors

  • China Shengmu Organic Milk Ltd
  • Xinjiang Western Animal Husbandry Co., Ltd. Class A
Last Updated on 17 Aug, 2018

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