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China Shengmu Organic Milk Ltd
(1432)
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Rating:52Neutral
Price Target:
HK$0.36
▲(10.30% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by deteriorating financial performance—recent net losses, weaker margins, and multi-year negative free cash flow—despite a still-manageable balance sheet. Technicals provide some support as the stock trades above key moving averages with positive MACD, but overbought momentum indicators temper the outlook. Valuation is constrained by a negative P/E and the absence of dividend yield data.
Positive Factors
Organic raw-milk specialization
Focusing on organic raw milk gives the company a defined position in China’s dairy supply chain. This specialization supports a clear operating model, while established supply arrangements with processors can provide recurring routes to market for production over the next several quarters.
Negative Factors
Revenue and margin deterioration
Two consecutive years of revenue decline indicate weakening top-line momentum, while the substantial reduction in gross margin shows that profitability per unit has deteriorated. Together, these trends can reduce reinvestment capacity and make recovery more dependent on improved pricing or cost control.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic raw-milk specialization
Focusing on organic raw milk gives the company a defined position in China’s dairy supply chain. This specialization supports a clear operating model, while established supply arrangements with processors can provide recurring routes to market for production over the next several quarters.
Read all positive factors
China Shengmu Organic Milk Ltd (1432) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$2.98B
Dividend Yield1.28%
Average Volume (3M)4.71M
Price to Earnings (P/E)―
Beta (1Y)0.52
Revenue Growth4.62%
EPS Growth-947.50%
CountryHK
Employees2,167
SectorConsumer Defensive
Sector Strength42
IndustryAgricultural Farm Products
Share Statistics
EPS (TTM)-0.04
Shares Outstanding8,381,295,000
10 Day Avg. Volume599,500
30 Day Avg. Volume4,709,285
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.72
Price to Sales (P/S)0.85
P/FCF Ratio-9.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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. Establi...
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 manuf...
China Shengmu Organic Milk Ltd Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
62
Positive
Cash Flow
40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.01B | 3.13B | 3.38B | 3.18B | 2.98B |
| Gross Profit | 755.26M | 925.89M | 1.03B | 1.01B | 1.06B |
| EBITDA | 681.12M | 809.48M | 900.27M | 922.50M | 997.18M |
| Net Income | -373.40M | -65.50M | 86.08M | 416.46M | 471.71M |
Balance Sheet | |||||
| Total Assets | 7.98B | 8.46B | 8.52B | 7.89B | 7.13B |
| Cash, Cash Equivalents and Short-Term Investments | 1.12B | 697.23M | 525.46M | 994.08M | 579.57M |
| Total Debt | 2.25B | 2.33B | 2.18B | 1.85B | 1.68B |
| Total Liabilities | 4.17B | 4.29B | 4.28B | 3.63B | 3.24B |
| Stockholders Equity | 3.59B | 3.96B | 4.02B | 4.06B | 3.68B |
Cash Flow | |||||
| Free Cash Flow | -272.00M | -482.21M | -375.46M | 126.00M | 224.27M |
| Operating Cash Flow | 973.98M | 916.23M | 940.28M | 1.12B | 1.03B |
| Investing Cash Flow | -660.63M | -966.85M | -1.15B | -1.06B | -1.07B |
| Financing Cash Flow | -103.84M | 86.06M | 118.43M | -98.82M | 238.32M |
China Shengmu Organic Milk Ltd Technical Analysis
Negative
0.33
Price Trends
0.36
Negative
0.34
Positive
0.34
Positive
Market Momentum
>-0.01
Positive
45.33
Neutral
38.10
Neutral
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 0.33 is below the 20-day moving average (MA) of 0.37, below the 50-day MA of 0.36, and below the 200-day MA of 0.34, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | HK$1.52B | 1.83 | 11.75% | ― | 12.04% | 144.39% | |
65 Neutral | HK$2.16B | 11.25 | 8.74% | ― | -18.70% | -5.97% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
54 Neutral | HK$9.53B | -19.41 | -12.23% | 1.60% | -10.01% | -129.99% | |
52 Neutral | HK$2.98B | -10.05 | -7.23% | 1.28% | 4.62% | -947.50% | |
46 Neutral | HK$19.92B | 24.56 | 5.40% | 1.30% | 6.96% | ― | |
44 Neutral | HK$13.18B | -56.43 | -2.37% | 0.80% | 5.24% | 90.34% |
* Consumer Defensive Sector Average
HK:1432
China Shengmu Organic Milk Ltd
0.37
0.04
12.12%
HK:3839
Chia Tai Enterprises International
8.53
-1.32
-13.40%
HK:1431
YuanShengTai Dairy Farm
0.31
-0.02
-4.69%
HK:9858
China Youran Dairy Group Limited
4.45
1.09
32.44%
HK:1117
China Modern Dairy Holdings Ltd.
1.66
0.38
29.30%
HK:2419
Dekon Food And Agriculture Group Class H
58.95
-27.25
-31.61%
China Shengmu Organic Milk Ltd Corporate Events
China Shengmu Flags Public Float Risk, Affirms New Independent Directors
Aug 31, 2026
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 c...
China Shengmu Warns of Delisting Risk as Public Float Falls Below HKEX Threshold
Aug 31, 2026
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...
China Shengmu Warns of Public Float Shortfall and Potential Delisting Risk
Aug 27, 2026
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 i...
China Shengmu Overhauls Board Amid Public Float Shortfall Risk
Aug 26, 2026
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 a...
China Shengmu Moves to Restore Public Float Amid Delisting Risk
Aug 11, 2026
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 com...
China Shengmu Warns of Public Float Shortfall as Board Sets Interim Results Meeting
Aug 10, 2026
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 p...
China Shengmu Warns of Public Float Shortfall and Potential Delisting Risk
Aug 6, 2026
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 investo...
China Shengmu Adds Public Float Marker to Stock Name Amid Listing Risk
Aug 4, 2026
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 p...
China Modern Dairy Lifts Stake in China Shengmu to Over 83% After Cash Offer Closes
Aug 3, 2026
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 e...
China Shengmu Faces Delisting Risk After Public Float Falls Below HKEX Threshold
Aug 3, 2026
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 p...
Modern Dairy’s Cash Offer Lifts China Shengmu Stake Above 81%, Public Float in Focus
Jul 21, 2026
China Modern Dairy has launched a mandatory conditional cash offer, through CLSA, to acquire all outstanding shares of China Shengmu Organic Milk not already owned by Modern Dairy and its concert parties, following earlier share purchase agreement...
China Modern Dairy Secures Majority Control of China Shengmu Organic Milk
Jul 20, 2026
China Modern Dairy has launched a mandatory conditional cash offer, via CLSA, for all shares of China Shengmu Organic Milk that it does not already own, moving to deepen its control over the organic milk producer. The offer follows earlier share p...
China Shengmu Grants Long-Term Award Shares to Boost Management Incentives
Jul 6, 2026
China Shengmu Organic Milk Limited has granted 114,073,000 award shares, equal to about 1.36% of its issued share capital, to 65 middle and senior managers under its long-term Share Award Scheme. The move is designed to motivate key personnel and ...
China Shengmu Issues Supplemental Clarification on China Modern Dairy Cash Offer
Jul 3, 2026
China Shengmu Organic Milk has issued a supplemental announcement regarding the mandatory conditional cash offer made by China Modern Dairy Holdings, clarifying that Shengmu holds no shares, options or derivatives in China Modern Dairy and has not...
China Modern Dairy Launches Mandatory Cash Offer for China Shengmu Organic Milk
Jun 29, 2026
China Modern Dairy Holdings Ltd., a leading player in China’s dairy sector, has moved to acquire all outstanding shares of China Shengmu Organic Milk Limited that it does not already own, excluding those held or to be acquired by a related p...
China Shengmu Updates Mandate of Strategy and Sustainability Committee
Jun 26, 2026
China Shengmu Organic Milk Limited has amended and restated the terms of reference for its board-level Strategy and Sustainability Committee, originally established in July 2021 and renamed in August 2021, with the latest revision adopted on 26 Ju...
China Modern Dairy pushes back deadline for China Shengmu offer document
Jun 18, 2026
China Modern Dairy Holdings Ltd. and China Shengmu Organic Milk Limited have announced a further extension to the timetable for issuing an offer document related to a mandatory conditional cash offer for all of China Shengmu’s remaining shar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.