China Mengniu Dairy 2319

[winston]

vested

Mengniu won't be pushed into price cuts

by Avery Chen

Jeffrey Lu says the company is maintaining its full-year revenue targets. Sing Tao

China Mengniu Dairy (2319) will not be reducing prices of its products despite facing intense competition in the mainland market, chief executive Jeffrey Lu Minfang said. But it is seeking merger and acquisition opportunities, he added.

He spoke as shares of the mainland dairy giant were slumping 5.83 percent to HK$31.5 yesterday after it posted a lower-than-expected first-half result, which made it the worst performer among blue-chip stocks.

Mengniu's first-half net profit rose 33 percent to 2.08 billion yuan (HK$2.28 billion) and revenue grew 15.6 percent to 39.86 billion yuan.

Basic earnings per share were 53.1 fen against a market expectation of 55 fen. No interim dividend was declared.

The gross profit margin was reduced by 0.1 percentage points to 39.1 percent. Lu said the decline was due to a 5-6 percent increase in raw milk prices.

Lu also said the company is maintaining a full-year revenue target of double-digit growth, and the operating profit margin is expected to increase by 50 basis points.

Mengniu said last month that it would be selling its 51 percent stakes in Shijiazhuang Junlebao Dairy for 4.01 billion yuan cash to strengthen its financial position.

Chief financial officer Zhangping said excluding Junlebao's contribution, Mengniu's revenue growth rose 13 percent year-on-year - still in line with the company's target.

Source: The Standard

http://www.thestandard.com.hk/section-n ... 0830&sid=2

[winston]

vested

<Research Report>JPM Hikes MENGNIU DAIRY (02319.HK) TP to $38; Rated Overweight

JP Morgan found that MENGNIU DAIRY (02319.HK)'s interim sales and earnings (up 15.6% and 33% YoY) represented approximately 5% overshoot of street consensus, delivering positive results.

The broker raised the company's 2019E-2021E earnings by 5-6%, assuming the company attains higher sales growth and better operating leverage.

The target price was hiked to $38 from $33.8 with rating kept Overweight.

Source: AAStocks Financial News

[winston]

vested

China Mengniu Dairy (2319 HK)

1H19: Driving Top-line With Operational Excellence

Mengniu delivered strong 1H19 results, thanks to accelerating sales and a back-to-profit associate, Modern Dairy.

The sale of Junlebao was an unfortunate development, in our view, but management once again demonstrated its competence in driving growth via product innovation, brand building and supply chain revamp.

Reiterate BUY with a higher target price of HK$35.00 (from HK$33.00).

Source: UOBKH

https://research.uobkayhian.com/content ... 53b32145fe

[winston]

not vested

Sep 27, 2019

MENGNIU DAIRY: 3Q Revenue Growth Resilient; GPM Remains Stable YoY

China Galaxy International issued a report, covering the investor telephone conference hosted by the broker for MENGNIU DAIRY (02319.HK).

The 3Q19 revenue growth of the company made a good headway comparing with 1H19, according to the company's management guidance.

The GPM of the milk maker was kept stable YoY, thanks to product mix upgrade and lower value-added tax, although 3Q19 raw milk price went up 5-7% YoY.

China Galaxy International retained MENGNIU DAIRY at Overweight with target price of HK$36.8.

Source: AAStocks Financial News

[winston]

vested

G Sachs Cites MENGNIU DAIRY: Sees 4Q19 GPM Pressured on Raw Material Cost Hike

Goldman Sachs in its report cited MENGNIU DAIRY (02319.HK)'s executives that pressure is seen on GPM heading to 4Q19, due to the rising input costs and that the cost control on SG&A may not be enough to fully offset the impacts therefrom and to meet the margin expansion target.

The broker kept Neutral on MENGNIU DAIRY at the target price $31.4.

Source: AAstocks.com

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vested

BABA-SW (09988.HK) Buys Into MENGNIU DAIRY (02319.HK)'s Smart Fridge Arm: Report

BABA-SW (09988.HK)'s Alibaba.com has pumped RMB150 million into MENGNIU DAIRY (02319.HK)'s TXP, said Chinese media.

TXP engages in the sales of dairy products by smart fridges in 15 Chinese cities, such as Shanghai and Nanjing.

Source: AAStocks Financial News

[winston]

not vested

11 May, 2020

<Research Report>Citi Foresees MENGNIU DAIRY (02319.HK) 1Q Recovery to Beat; Rated Buy

Citigroup in its report predicted MENGNIU DAIRY (02319.HK) to have delivered flattish organic business sales in 1Q20, better than its peers.

The broker retained Buy on MENGNIU DAIRY at the target price $39.05, whose organic business sales was expected to grow positively in both 2Q20 and 1H20, ahead of street forecast.

Citigroup remained upbeat on the outlook of MENGNIU DAIRY and CHINA RES BEER (00291.HK).

Source: AAStocks Financial News

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not vested

Mar 26, 2020

MENGNIU DAIRY: Expects 1H20 Sales to Dented by Epidemic

MENGNIU DAIRY (02319.HK) announced that since the COVID-19 outbreak, the transportation of some of the Group’s products have been largely affected and this had adversely affected the operations of the Group’s sales outlets and product turnover, which had in turn affected the sales of the Group for February and March 2020 as well as its upstream and downstream supply chain.

In addition, the costs of the Group for February and March 2020 have increased mainly due to the following reasons:
1. Tthe Group had incurred additional expenses on epidemic prevention and control to safeguard the health and safety of the employees and
2. To ensure the resumption of work and production; the Group had incurred additional marketing expenses to accelerate the Group’s sales efforts, with a view to reducing inventories in its distribution channels and
3. The Group had actively fulfilled its corporate social responsibilities and had made cash and supply donations to those in need.

In view of the above, the Board expected that the Outbreak may adversely impact the Group’s sales and financial performance for the first half of 2020.

As the Outbreak is still affecting the market and the industry, it remains difficult for the Company to quantify the impact the Outbreak will have on the Group for the first half of 2020.

Source: AAStocks Financial News

[winston]

not vested

Mar 26, 2020

<Blue Chip Results>MENGNIU DAIRY FY19 NP Up 35% to RMB4.1B; Final Div 18.1 Fen

MENGNIU DAIRY (02319.HK) revealed annual results for the year ended 31 December 2019.

The Group made revenue of RMB79.03 billion, representing an increase of 14.6% year-on-year.

Net profit increased by 34.9% to RMB4.105 billion.

Earnings per share was RMB1.049.

The Board recommended the payment of a final dividend of RMB0.181 per ordinary share, flattish yearly.

The management of Mengniu believed that the impact brought by the epidemic to the business of Mengniu is temporary.

Despite the fact that the epidemic has created challenges for the dairy product industry, it brought new momentums and opportunities to consumption upgrades of dairy products.

Source: AAStocks Financial News

[winston]

not vested

What’s New

April’s sales recovery; destocking on track; steady recovery in 2H20

Margin expansion in the medium term driven by product mix enhancement and recent M&As

TP lifted to HK$33.1, maintain BUY

Source: DBS

https://researchwise.dbsvresearch.com/R ... egbdkfhgbh