China Mengniu Dairy 2319

[winston]

And all the smart people who bought when the news came out, are now under water ..

Do u know why you are buying or selling ?

At the low of 6.00, people are afraid of buying. Now at 20, people are chasing it...

Ha Ha .... I think Temasek has a stake in Hopu ..

[-dol-]

Yes, I can confirm that Temasek has a stake in Hopu.

Here we go again...

[winston]

DJ Mengniu Dairy 1H Net Profit CNY661.9 Mln Vs CNY582.9 Mln

HONG KONG (Dow Jones)--China Mengniu Dairy Co. (2319.HK) said Tuesday its first-half net profit rose 13.6% from a year earlier as sales gradually recovered after last year's tainted milk scandal.

The company said its net profit for the six months ended June 30 was CNY661.9 million, up from CNY582.9 million a year earlier.

The Inner Mongolia-based dairy producer said its revenue fell 11.7% to CNY12.1 billion from CNY13.7 billion a year earlier.

The company didn't pay a first-half dividend this year and last year. -By Jackie Cheung, Dow Jones Newswires; 852-2802-7002; [email protected]

[winston]

DJ MARKET TALK: GS Upgrades Mengniu Dairy To Buy; HK$24.80 Target

1453 [Dow Jones] STOCK CALL: Goldman Sachs upgrades Mengniu Dairy (2319.HK) to Buy from Neutral, raises target price to HK$24.80 from HK$23.00; Broker adds company to Conviction List as expects profitability improvement, demand recovery to rebuild investor confidence. Notes stock is top pick among Chinese consumer peers.

Adds although some input prices in sector have bottomed over past 3-6 months, house does not think cost pressure will be concern in 2H09, given current prices are still lower than 2008 levels and most companies have some lower-priced inventory on their books. Tips moderate cost rise in 2010, while positive earnings outlook for leading staples names remains intact.

Source: Dow Jones Newswire

[winston]

Not Vested. From UOBKH:-


Earnings Risk

No change to our earnings forecasts. However, there could be potential downside to earnings if raw milk prices continue to rise in the medium term.


Valuation/Recommendation

Based on our earnings forecasts, Mengniu is trading at 23.9x 2009F PE and 18.7x 2010F PE, lower than its Hong Kong peers’ 26.0x and 21.1x respectively. As a leading dairy producer with visible earnings growth and
extensive distribution network, we believe the stock deserves a premium to Hong Kong-listed China consumer staple sector.

Historically, Mengniu traded at a 20-40% premium to its F&B peers. Maintain BUY and our target price of HK$26.00.

[winston]

Mengniu Dairy CEO's unaccredited MBA
26th April 2010

According to the 1-Jun-2004 IPO prospectus of China Mengniu Dairy Co Ltd (Mengniu, 2319), co-founder and then executive director Yang Wenjun (Mr Yang) "graduated with a Master's degree in Business Administration from Barrington University in 2003" - just in time for the IPO. The latest annual report (for 2008) repeats the claim, stating that Mr Yang, who became CEO on 27-Aug-2009, "holds a Master's degree in Business Administration from Barrington University".

Barrington University, Inc. (Barrington) was a company incorporated and headquartered in Alabama and was owned by Virtual Academics.com, Inc. (VADC), an Over-The-Counter Bulletin Board stock based in Boca Raton, Florida. An investigative report by South Florida Business Journal (SFBJ) dated 13-Oct-2000 found that the location listed for Barrington's headquarters was just an answering, secretarial and bookkeeping service in Mobile, Alabama.

http://webb-site.com/articles/barrington.asp

[winston]

If the "expert analysts" cant get it right, what chance do you and I have ?

DJ MARKET TALK: GS Removes Mengniu From Conviction Buy List

1218 [Dow Jones] STOCK CALL: Goldman Sachs removes China Mengniu Dairy (2319.HK) from Conviction Buy list, as higher expenses may dampen short-term earnings; but maintains Buy call given long-term growth outlook remains solid.

Notes, FY09 earnings (net profit at CNY1.116 billion vs loss of CNY948.6 million FY08) was 10% below house's view. Cuts FY10-FY12 EPS forecast by 11%-12% and cuts target to HK$26.00 vs HK$29.50, with new target based on 26X FY10 P/E.

( And they still see it fit to apply a Forward PE of 26 )


"Mengniu will remain a good long-term investment with solid positioning in the domestic dairy market." Stock down 1.9% at HK$23.80.

Source: Dow Jones Newswire

[winston]

Mengniu milks COFCO link in quality push

Thursday, June 10, 2010

China Mengniu Dairy (2319) says it is now able to reach more domestic and overseas customers through the sales channels of major shareholder China National Cereals, Oils and Foodstuffs Corporation.

Co-founder and non-executive director Niu Gensheng said the mainland - where Mengniu is a market leader - remains the main focus for the company.

Mengniu said it has derived more benefits from synergy with COFCO after the state-backed company and Hopu Investment bought a combined 20 percent stake in July.

"COFCO has been supplying quality raw materials for our production," chief executive Yang Wenjun said.

"Also by adopting its concept of integrating the entire production chain, we can ensure that our products are safe for consumption."

Mengniu was one of several dairies involved in the mainland's tainted milk scandal in 2008. Yang said Mengniu is not worried about production costs surging because of wage rises, a recent cause for concern at many companies.

"By developing new products, and improving current products and marketing strategies we are able to offset the rise in costs with increased sales revenue," he added.

Niu, who stepped down in 2006 as chief executive, said he will remain non- executive director. ZERN WONG


http://www.thestandard.com.hk/

[winston]

Mengniu pours cold milk on `arrests' rumors
Thursday, October 21, 2010

China Mengniu Dairy (2319) has denied reports that it was involved in any activities damaging the business reputation of a rival company.

Mengniu added that all members of management are working as usual, denying a Caijing report that executives and its outside public relations representatives have been arrested or are under investigation. Shares of Mengniu plunged 2.5 percent to HK$23 yesterday.

"Mengniu Group never planned, organized or acted related to the claim that Shengyuan dairy products triggered precocious puberty," the group said in the statement. The milk maker also said it has reported the matter to the police.

There have been postings on several mini-blogs in the mainland saying Mengniu was behind a plan to damage the image of Shengyuan.

At least 10 people, including executives of the mainland dairy product maker and its public relations firm, were arrested, according to the postings. They included executive assistant to the chairman Yang Zaifei, director of liquid milk operation An Yong, and Zhao Xiyong - deputy manager of Beijing Bosi Zhiqi Public Relations Consulting.

At least three others from the consulting firm have been detained, sources said. Mainland market watchers doubt the postings. The rapid spread of the rumors indicate someone is trying to harm Mengniu, said Wang Dingmian, an independent dairy industry analyst.

Shengyuan, which focuses on the milk powder market, in which Mengniu has only a 5 percent market share, are not direct competitors.

But the Mengniu statement, which denied all allegations involving Shengyuan, did not respond to claims by Yili, another rival, that Mengniu targeted that company in July, and planned to spread rumors involving its products.

Yili said the case is under investigation, while some Mengniu staff had been arrested.

http://www.thestandard.com.hk/news_deta ... 01021&fc=7

[iam802]

Interesting news, isn't it.

Company CEO and PR firm boss are being detained.

But, why go after Synutra? Are they the only competitor? Are they the biggest?

And how big is Mengniu's baby infant market?