not vested
MENGNIU DAIRY(2319)
Analysis:
The company produces and sells dairy products in China, with an annual production capacity of 9.51 million tons.
In 18H1, the company achieved revenue of RMB34.47bn, a yoy increase of 17%.
Profit attributable to shareholders was RMB1.562bn, a yoy increase of 38.5%.
Looking forward, alongside consumption demand upgrade, room temperature yogurt, high-end pure milk and chilled products have become the main growth engine of the industry.
Regarding domestic infant milk formula, the market has been continuously developing in steady strides, owed mainly to quality upgrade, brand promotion and the two-child policy. The organic infant milk formula market, in particular, is growing fast.
Strategy:
Buy-in Price: $25.20, Target Price: $28.00, Cut Loss Price: $22.00
Source: Phillips