China Mengniu Dairy 2319

[iam802]

This is Winston's trading counter for the week.

[Atlas]

I asked around here in Shanghai and most of my local friends have not heard of the recent scandal. I assume it was simply not reported in the mainstream media. Can't imagine sales being affected that much...

[Atlas]

Hmm, maybe I asked the wrong people

MENGNIU DAIRY (02319) recovers sales to 10-20% decline only

2012-01-05 09:43:48

MENGNIU DAIRY (02319)'s sales plunged 50-60% on the day its products were said to contain excessive level of carcinogen. The management of the company expressed that sales decline mainly occurred in first-tier cities while that in rural areas was small.

Currently, MENGNIU DAIRY's sales dropped 10-20% only compared to before the news was out. The management said the group's gross profit margin will not be affected by a large extent.

The group is still investigating into the reason behind this incident, estimating to be attributable to carelessness of staff during raw milk monitoring. The group will examine all the products in its 28 factories and conduct reviews on production processes in order to avoid the same thing from happening again.


AAStocks Financial News

[winston]

not vested

DJ MARKET TALK: UOB Cuts Mengniu To Sell;Consumers Losing Confidence

1106 [Dow Jones] STOCK CALL: UOB KayHian cuts Mengniu Dairy (2319.HK) to Sell from Buy, and slashes its target price to HK$15.00 vs HK$33.00.

The house says after the endless scandals involving the quality of China's dairy products over the past few years, consumers are losing confidence; it cuts Mengniu's FY12 net profit forecasts by 24.9%, and FY13's by 17.7% to reflect the worse-than-expected sales and decreasing operating margin due to rising selling expenses.

UOB adds, Mengniu is trading at 19.8X FY12 P/E, higher than its Hong Kong-listed F&B peers' 17.7X.

"As we expect sales and operating margin to fall in 2012 due to the quality scandal, we believe Mengniu does not deserve to trade at a premium to peers."

Mengniu is down 1.9% at HK$19.76, ending a two-session 11.0% rebound.


Source: Dow Jones Newswire

[winston]

not vested

MENGNIU DAIRY (02319) admits poor ice-cream factory environment
2012-06-22

A photo revealing the poor environment of MENGNIU DAIRY (02319)'s ice-cream processing plant located in the Mainland, has been circulating on internet recently.

Mengniu admitted the non-compliance issues happening in the factory in the official microblogging on 20 June, and said it has ordered the factory to rectify the problem immediately.

For unqualified acceptance, the cooperation will be terminated and the persons in charge would be suspended from their duties. The Company will also set up a subcommittee to conduct a comprehensive review, in order to prevent similar problems from recurring.

As to the accusation of sampling failure, Mengniu said it is not not true after investigation and stressed that all products have approved compliance verification in accordance with national standards before leaving the factory.


Source: AAStocks Financial News

[winston]

not vested

JP Morgan bought an additional 1.773 million shares of China Mengniu Dairy Co Ltd, the country's biggest dairy products maker, at an average of HK$22.85 each for about HK$40.51 million ($5.22 million) on Aug. 13, according to an exchange disclosure.


Source: MING PAO DAILY NEWS

[winston]

not vested

<Result Ann>MENGNIU DAIRY (02319.HK) IR NP down 18.4% to RMB640M; Nil div

MENGNIU DAIRY (02319.HK) announced for the half year ended June, the income fell 1.2% year-on-yar to RMB18.36 billion; net profit fell 18.4% to RMB640 million, representing EPS of RMB0.365. No interim dividend was declared.

During the period, the Group eliminated a large number of fragmented milk sources and increased the proportion of purchase from integrated milk sources so as to enhance the quality of its products;

In the meantime, costs also surged upon further efforts devoted by the Group in engaging more quality assurance staff to inspect each stage of production on a more regular basis.

The Group recorded a gross profit of RMB4.71 billion, a slight decrease of 2.37%. Overall gross profit margin reached 25.7%, a decrease of 0.3 percentage points from the same period last year.

At the end of June, the Group's net cash sharply dropped to RMB830 million. The decrease was primarily attributable to the improvement of efficiency in the application of funding resulting from an increase in the amount of investment deposits. The unsettled bank loan amounted to RMB730 million, and the debt to equity ratio equaled 5.9%.


Source: AAStocks Financial News

[winston]

not vested

Scares drain Mengniu profits

China Mengniu Dairy (2319) reported an 18-percent fall in first-half net profit from a year earlier to 645 million yuan (HK$787.3 million), as sales slowed due to negative reports about product quality.

Earnings per share dropped to 36.5 fens at the nation's largest milk producer and no dividend was recommended.

Total revenue fell 1.2 percent to 18.4 billion yuan from a year earlier.

This came as sales plunged by 30 percent in the first quarter, after reports at the year-end about alleged cancer- causing substances in its dairy products.

Premium products accounted for more than half of revenue in the six months to June 30 but sales dropped 1.8 percent.

The gross profit margin may have narrowed by 0.3 percentage points to 25.7 percent, but chief executive Sun Yiping is upbeat going forward.

"Sales have recovered [as the negative news has been almost absorbed]," she said. "We expect to see further improvements in sales in the second half."

However, she warned that margins will ease as Mengniu aims to boost its brand name and market share through fresh advertising and promotion drives.

The firm has pledged to speed up construction of self-operated dairies as part of a four billion yuan project and is confident that most sourcing will be internalized by 2015. Sourcing milk from small, scattered farms has been blamed for its recurrent product-quality scandals.


http://www.thestandard.com.hk/news_deta ... 20829&fc=4

[winston]

not vested

MENGNIU DAIRY (02319.HK)'s kids yogurt said to contain illegal additive

MENGNIU DAIRY (02319.HK) is suspected of misleading consumers, as the kids yogurt produced by the company reportedly contains additive that is not suitable for infants.

The spokesperson of MENGNIU DAIRY said products containing milk mineral salt are not infant food and the regulator has never requested labeling such contents on the package.


Source: AAStocks Financial News

[winston]

<Result Ann>MENGNIU DAIRY (02319.HK) 1H net profit gains 39.9%

MENGNIU DAIRY (02319.HK) reported interim fiscal results.

Revenue escalated 25% yearly to RMB25.836 billion.

Net profit jumped 39.9% to RMB1.049 billion.

EPS was RMB54 fen, and no dividend was declared. ~

Source: AAStocks Financial News