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China Shengmu Organic Milk Ltd (1432) AI Stock Analysis
China Shengmu Organic Milk Ltd
(HKEX:1432)
The score is held back primarily by deteriorating fundamentals (recent revenue declines, margin compression, and losses) and weak cash conversion (negative free cash flow for three years). Technical indicators also point to bearish momentum with the price below major moving averages. Valuation is not supportive because losses produce a negative P/E and there is no dividend yield data to provide offsetting income appeal.
China Shengmu Organic Milk Ltd (1432) vs. iShares MSCI Hong Kong ETF (EWH)
- Market Cap
- HKD 2.01B
- Dividend Yield
- ―
- Average Volume (3M)
- 2.18M
- Price to Earnings (P/E)
- -6.5
- Beta (1Y)
- 0.55
- Revenue Growth
- 4.62%
- EPS Growth
- -947.50%
- Country
- Hong Kong
- Employees
- 2,167
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Agricultural Farm Products
China Shengmu Organic Milk Ltd Business Overview & Revenue Model
Company Description
Operating as an investment holding company, China Shengmu Organic Milk Limited manufactures and supplies unprocessed milk and various dairy products, serving both domestic markets within the People's Republic of China and global customers. Establishe...
How the Company Makes Money
The company makes money primarily by producing and selling raw milk, with an emphasis on organic raw milk. Revenue is generated when the company delivers raw milk under supply arrangements to dairy processors or other customers who use it to manufact...
China Shengmu Organic Milk Ltd Financial Statement Overview
Summary
Financial performance has weakened materially: revenue has declined in the last two annual periods, margins compressed versus earlier years, and net income shifted from profits (2020–2022) to losses in 2024–2025 (net margin about -12.4% in 2025). The balance sheet looks manageable (debt-to-equity ~0.63), but negative ROE and three years of negative free cash flow indicate reduced flexibility if the downturn persists.
Income Statement
46NeutralBalance Sheet
62PositiveCash Flow
40Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.11B | 3.01B | 3.13B | 3.38B | 3.18B | 2.98B |
| Gross Profit | 838.24M | 755.26M | 925.89M | 1.03B | 1.01B | 1.06B |
| EBITDA | 780.71M | 702.48M | 844.45M | 919.95M | 929.24M | 999.57M |
| Net Income | -261.07M | -373.40M | -65.50M | 86.08M | 416.46M | 471.71M |
Balance Sheet | ||||||
| Total Assets | 7.17B | 7.98B | 8.46B | 8.52B | 7.89B | 7.13B |
| Cash, Cash Equivalents and Short-Term Investments | 752.63M | 1.12B | 697.23M | 525.46M | 994.08M | 579.57M |
| Total Debt | 2.23B | 2.25B | 2.33B | 2.18B | 1.85B | 1.68B |
| Total Liabilities | 3.35B | 4.17B | 4.29B | 4.28B | 3.63B | 3.24B |
| Stockholders Equity | 3.65B | 3.59B | 3.96B | 4.02B | 4.06B | 3.68B |
Cash Flow | ||||||
| Free Cash Flow | -686.69M | -272.00M | -482.21M | -375.46M | 126.00M | 224.27M |
| Operating Cash Flow | 475.96M | 973.98M | 916.23M | 940.28M | 1.12B | 1.03B |
| Investing Cash Flow | -380.96M | -660.63M | -966.85M | -1.15B | -1.06B | -1.07B |
| Financing Cash Flow | -85.40M | -103.84M | 86.06M | 118.43M | -98.82M | 238.32M |
China Shengmu Organic Milk Ltd Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1432, the sentiment is Negative. The current price of 0.24 is below the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.33, and below the 200-day MA of 0.34, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 26.76 is Positive, neither overbought nor oversold. The STOCH value of 9.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1432.
China Shengmu Organic Milk Ltd Peers Comparison
Overall Rating
HK:143170Outperform
HK:241964Neutral
HK:383961Neutral- HK:143245Neutral
HK:985842Neutral
HK:111738Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| HK:1431 | 70Outperform | HKD 1.34B | 1.70 | 11.75% | ― | 12.04% | 144.39% |
| HK:2419 | 64Neutral | HKD 8.69B | -17.95 | -12.23% | 1.76% | -10.01% | -129.99% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| HK:3839 | 61Neutral | HKD 1.98B | 10.29 | 8.74% | ― | -18.70% | -6.74% |
| HK:1432 | 45Neutral | HKD 2.01B | -6.47 | -7.21% | ― | 4.62% | -947.50% |
| HK:9858 | 42Neutral | HKD 15.16B | 18.43 | 5.40% | ― | 6.96% | ― |
| HK:1117 | 38Underperform | HKD 9.87B | -42.26 | -2.37% | 1.06% | 5.12% | 90.34% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| HK:1432 | China Shengmu Organic Milk Ltd | 0.24 | -0.10 | -28.36% | |
| HK:3839 | Chia Tai Enterprises International | 7.80 | 0.82 | 11.75% | |
| HK:1431 | YuanShengTai Dairy Farm | 0.28 | 0.02 | 9.62% | |
| HK:9858 | China Youran Dairy Group Limited | 3.38 | -0.10 | -2.74% | |
| HK:1117 | China Modern Dairy Holdings Ltd. | 1.25 | 0.01 | 0.81% | |
| HK:2419 | Dekon Food And Agriculture Group Class H | 55.00 | -16.85 | -23.45% |
China Shengmu Organic Milk Ltd Corporate Events
China Shengmu Warns of Listing Risk as Public Float Falls Short
China Shengmu Organic Milk Limited has disclosed that its public float currently stands at about 12.87%, below the Hong Kong Stock Exchange’s minimum requirement and falling within the exchange’s definition of a Significant Public Float S...
China Shengmu Warns of Delisting Risk as Public Float Falls Short
China Shengmu Organic Milk Limited has confirmed that its public float stands at about 12.87%, below the Hong Kong Stock Exchange’s minimum requirement and meeting the criteria for a Significant Public Float Shortfall. The shortfall exposes the...
China Modern Dairy Adjusts Voting Control as China Shengmu Faces Public Float Risk
China Modern Dairy Holdings Ltd. and China Shengmu Organic Milk Limited jointly announced a partial lapse of an irrevocable voting proxy previously granted by Start Great Holdings Limited in favour of China Modern Dairy. Under a Voting Rights Agreeme...
China Shengmu Flags Public Float Risk, Affirms New Independent Directors
China Shengmu Organic Milk has warned shareholders and potential investors that it currently fails to meet Hong Kong’s minimum public float requirements and faces possible delisting if it does not restore compliance by 2 February 2028. The comp...
China Shengmu Warns of Delisting Risk as Public Float Falls Below HKEX Threshold
China Shengmu Organic Milk Limited has confirmed that its public float stands at about 12.87%, below the Hong Kong Stock Exchange’s minimum requirement and qualifying as a Significant Public Float Shortfall. The shortfall exposes the company to...
China Shengmu Warns of Public Float Shortfall and Potential Delisting Risk
China Shengmu Organic Milk Limited has been deemed to have a Significant Public Float Shortfall under Hong Kong listing rules after failing to maintain the minimum required public float for its shares. The company faces potential cancellation of its...
China Shengmu Overhauls Board Amid Public Float Shortfall Risk
China Shengmu Organic Milk Limited, a Cayman-incorporated dairy producer listed in Hong Kong, focuses on organic milk and related products for China’s growing health-conscious consumer market. The group’s operations and investor base are...
China Shengmu Moves to Restore Public Float Amid Delisting Risk
China Shengmu Organic Milk Limited has been classified as having a Significant Public Float Shortfall after failing to meet the minimum public float required under Hong Kong Listing Rule 13.32B, exposing the company to the risk of delisting if compli...
China Shengmu Warns of Public Float Shortfall as Board Sets Interim Results Meeting
China Shengmu Organic Milk Limited has been classified as having a significant public float shortfall under Hong Kong Listing Rules, after failing to maintain the required minimum level of publicly held shares. The company warns shareholders and pote...
China Shengmu Warns of Public Float Shortfall and Potential Delisting Risk
China Shengmu Organic Milk Limited has disclosed that it is currently regarded as having a Significant Public Float Shortfall under Hong Kong Listing Rule 13.32F, meaning it has failed to maintain the minimum level of shares held by public investors...
China Shengmu Adds Public Float Marker to Stock Name Amid Listing Risk
China Shengmu Organic Milk Limited, a Hong Kong-listed organic dairy producer incorporated in the Cayman Islands, trades under stock code 1432 and targets the Chinese market. The company operates within a regulated environment where adherence to publ...
China Modern Dairy Lifts Stake in China Shengmu to Over 83% After Cash Offer Closes
China Modern Dairy Holdings Ltd. has completed a mandatory unconditional cash offer for shares in China Shengmu Organic Milk Limited, closing the offer on August 3, 2026. The offer, launched through CLSA, was not revised or extended and followed earl...
China Shengmu Faces Delisting Risk After Public Float Falls Below HKEX Threshold
China Shengmu Organic Milk Limited has fallen below the Hong Kong Stock Exchange’s minimum public float requirement after a takeover-style offer increased the stake of China Modern Dairy Holdings Ltd. and its concert parties to about 83.52 perc...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 23, 2026