China Mengniu Dairy 2319

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BofAS Chops MENGNIU DAIRY (02319.HK) TP to $24.5, Lowers EPS Forecasts

MENGNIU DAIRY (02319.HK) 's results missed expectation, BofA Securities released a research report saying.

BofA Securities lowered its EPS forecasts for 2024 and 2025 by 8% each, and chopped its target price by 18% from $30 to $24.5, reflecting the industry's de-rating.

Despite the lack of catalysts in the near term and the expected decrease of the market's forecasts, BofA Securities reiterated rating at Buy on MENGNIU DAIRY, due to its extremely attractive valuation, which is now believed to be 13x of 2024 projected PE ratio, 41% lower than the average of the past decade, representing a 15% underperformance over the HSI since 2023, and its continued expansion of its market share in the dairy industry of China.

Related News: M Stanley: MENGNIU DAIRY 2023 NP 7%/ 12% Below Forecasts of M Stanley/ Street

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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<Research>Haitong Int'l Chops MENGNIU DAIRY TP to $29.8 as Non-recurring Profit & Loss Shakes NP

MENGNIU DAIRY (02319.HK) 's 2023 net profit margin was 4.9%, down 85 bps YoY, falling more than expected, mainly due to the net profit fluctuation brought by non-recurring gains and losses, including the impairment in mixed flour of RMB320 million, up 36% YoY, Haitong International issued a research report saying.

This project is expected to be reduced QoQ this year.

Haitong International expected MENGNIU DAIRY's operating revenue from 2024 to 2026 to be RMB101.49 billion/ RMB105.53 billion/ RMB109.6 billion respectively, up 2.9%/ 4%/ 3.9% YoY.

Net profit was expected to be RMB5.42 billion/ RMB6.22 billion/ RMB6.75 billion, up 12.7%/ 14.7%/ 8.6% YoY.

Related News: CLSA Reduces MENGNIU DAIRY (02319.HK) TP to $24, Rates Buy

EPS was forecasted to be RMB1.38/ RMB1.58/ RMB1.72, respectively. Haitong International chopped its target price from $41.5 to $29.8, with rating kept at Outperform.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

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<Research>M Stanley: MENGNIU DAIRY (02319.HK) Mgmt Remained Conservative on Short-term Growth

Morgan Stanley commented in a report that MENGNIU DAIRY (02319.HK) management remained conservative on the company's short-term growth.

The company forecasted earlier that for FY24, sales growth will reach mid- to low-single-digit, core operating profit margin will expand by 30 to 50 bps, operating expenditure ratio will increase slightly, and non-operating income should be similar to last year's.

According to the broker, MENGNIU's year-to-date sales situation has continued from 2H23, with only a small increase.

Inventories remained at a healthy level.

The broker also pointed out that the oversupply of raw milk will continue this year, and raw milk prices will be on a downward trend.

However, MENGNIU management expected the downward cycle of raw milk prices to change by 2025 at the earliest.

Morgan Stanley believed MENGNIU's gearing ratio will remain below 60%.

Company management also indicated that there may be more room for dividend payout in the future as capital expenditure declines.

The broker therefore set a target price of $26 for MENGNIU and rated it Overweight.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN