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China Youran Dairy Group Limited (HK:9858)
:9858
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China Youran Dairy Group Limited (9858) AI Stock Analysis

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HK:9858

China Youran Dairy Group Limited

(9858)

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Neutral 48 (OpenAI - 4o)
Rating:48Neutral
Price Target:
HK$3.50
▲(21.11% Upside)
The overall stock score is primarily impacted by the company's financial performance, which shows strong revenue growth but significant profitability challenges and high leverage risks. Technical analysis indicates a bearish trend, further weighing down the score. Valuation concerns due to a negative P/E ratio and lack of dividend yield also contribute to the lower score.

China Youran Dairy Group Limited (9858) vs. iShares MSCI Hong Kong ETF (EWH)

China Youran Dairy Group Limited Business Overview & Revenue Model

Company DescriptionChina Youran Dairy Group Limited, an investment holding company, operates as an integrated provider of products and services in the upstream dairy industry in the People's Republic of China. The company operates through Raw Milk Business and Comprehensive Ruminant Farming Solutions segments. It offers raw milk to dairy manufacturers. It also provides nutritious concentrated feed and forage grass for dairy farms; frozen bovine semen, sex-sorted frozen bovine semen, embryos, breeding solutions, etc.; and ruminant farming products, such as veterinary drugs, animal husbandry equipment, and other items for dairy farms through its online retail platform, Jumuc.com, and offline pick-up stores. The company was founded in 1984 and is headquartered in Hohhot, the People's Republic of China.
How the Company Makes MoneyChina Youran Dairy Group Limited generates revenue through several key streams. The primary source of income comes from the sale of raw milk produced by its large-scale dairy farms. The company operates an integrated business model that includes dairy cow breeding, raising, and milking, ensuring a consistent supply of high-quality raw milk. Additionally, Youran Dairy provides value-added services to dairy farmers, such as technical support and management services, which contribute to its revenue. The company also benefits from strategic partnerships and collaborations with major dairy product manufacturers, enhancing its market reach and stability. These partnerships often involve long-term supply agreements, providing a steady and predictable income stream. Overall, Youran Dairy's revenue model capitalizes on its vertically integrated operations and industry expertise to maintain a robust financial performance.

China Youran Dairy Group Limited Financial Statement Overview

Summary
China Youran Dairy Group Limited shows robust revenue growth, but profitability remains a concern with continued net losses. The reliance on debt financing is high, which could pose financial risks if not managed carefully. While operating cash flows are strong, negative free cash flow highlights challenges in managing capital expenditures. Overall, the company needs to focus on improving profitability and managing its leverage to strengthen its financial position.
Income Statement
60
Neutral
The company demonstrates a strong revenue growth trajectory, with a notable increase from previous years. However, despite the growth in revenue, the company is experiencing losses in net income, indicating profitability issues. The gross profit margin has improved, reflecting efficiency in cost management, but negative net profit margins highlight challenges in overall profitability.
Balance Sheet
55
Neutral
The balance sheet shows a high level of debt compared to equity, as evidenced by a high debt-to-equity ratio. This indicates potential leverage risks. The equity ratio is moderate, suggesting a balanced asset structure. Return on equity is negative, signaling inefficiencies in generating income for shareholders.
Cash Flow
58
Neutral
The cash flow analysis reveals a positive operating cash flow, indicating good cash generation from core operations. However, free cash flow remains negative, affected by high capital expenditures. The free cash flow to net income ratio is concerning, primarily due to net losses, impacting cash sustainability.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.10B18.69B18.05B15.35B11.78B
Gross Profit5.78B4.47B4.22B4.69B3.60B
EBITDA4.81B3.42B2.01B3.21B2.24B
Net Income-690.89M-1.05B414.77M1.56B1.34B
Balance Sheet
Total Assets43.66B46.20B43.45B31.96B22.20B
Cash, Cash Equivalents and Short-Term Investments1.67B3.94B2.86B1.02B2.62B
Total Debt26.49B28.08B23.32B13.18B10.21B
Total Liabilities31.50B33.10B28.70B17.08B13.14B
Stockholders Equity11.30B11.83B13.06B13.18B7.82B
Cash Flow
Free Cash Flow-651.89M-3.66B-6.13B-5.53B-2.06B
Operating Cash Flow5.84B4.39B2.55B2.27B1.71B
Investing Cash Flow-5.60B-4.34B-10.78B-8.70B-4.75B
Financing Cash Flow-3.11B2.99B8.05B5.42B5.09B

China Youran Dairy Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price2.89
Price Trends
50DMA
3.73
Negative
100DMA
3.17
Negative
200DMA
2.60
Positive
Market Momentum
MACD
-0.21
Positive
RSI
27.62
Positive
STOCH
7.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:9858, the sentiment is Negative. The current price of 2.89 is below the 20-day moving average (MA) of 3.44, below the 50-day MA of 3.73, and above the 200-day MA of 2.60, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 27.62 is Positive, neither overbought nor oversold. The STOCH value of 7.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:9858.

China Youran Dairy Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
12.61B7.6748.38%1.25%0.00%0.00%
64
Neutral
1.34B4.325.86%13.78%432.26%
52
Neutral
9.79B-4.29-14.86%1.07%-2.62%-695.87%
50
Neutral
2.51B77.50-1.65%0.74%-7.11%0.00%
48
Neutral
HK$11.25B-5.81%3.07%-64.23%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:9858
China Youran Dairy Group Limited
2.89
1.68
138.84%
HK:1431
YuanShengTai Dairy Farm
0.27
0.15
125.00%
DE:7OM
China Shengmu Organic Milk Ltd
0.03
<0.01
50.00%
HK:1117
China Modern Dairy Holdings Ltd.
1.25
0.48
62.34%
HK:2419
Dekon Food And Agriculture Group Class H
81.50
37.62
85.73%

China Youran Dairy Group Limited Corporate Events

China Youran Dairy Group to Hold EGM for Financial Agreement Approval
Sep 5, 2025

China Youran Dairy Group Limited has announced an Extraordinary General Meeting scheduled for September 26, 2025, to approve a Supplemental Financial Services Framework Agreement and its Revised Annual Caps. This meeting aims to authorize the company’s directors to execute necessary actions related to the agreement, potentially impacting the company’s financial operations and strategic positioning within the dairy industry.

The most recent analyst rating on (HK:9858) stock is a Hold with a HK$3.50 price target. To see the full list of analyst forecasts on China Youran Dairy Group Limited stock, see the HK:9858 Stock Forecast page.

China Youran Dairy Reports Improved Interim Results Amid Continued Losses
Aug 22, 2025

China Youran Dairy Group Limited reported its interim results for the six months ending June 30, 2025, showing a 2.3% increase in revenue and an 8.3% rise in gross profit compared to the previous year. Despite these gains, the company experienced a loss of RMB 247,126,000, though this was a 47% improvement from the previous period. The company did not declare an interim dividend, signaling a cautious approach amid ongoing financial challenges.

The most recent analyst rating on (HK:9858) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Youran Dairy Group Limited stock, see the HK:9858 Stock Forecast page.

China Youran Dairy Revises Financial Agreement Caps Amid Rising Deposit Needs
Aug 22, 2025

China Youran Dairy Group Limited has announced a revision of the annual caps for its ongoing financial services agreement with Yili Finance Company due to an increase in required deposits. The revised caps, effective upon shareholder approval, will increase the maximum daily balance of deposits significantly for the periods ending in 2025 and 2026. This adjustment reflects the company’s growing financial needs and impacts its compliance with Hong Kong’s Listing Rules, requiring additional reporting and shareholder approvals.

The most recent analyst rating on (HK:9858) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Youran Dairy Group Limited stock, see the HK:9858 Stock Forecast page.

China Youran Dairy Group Enters Logistics Agreement with Yishun
Aug 22, 2025

China Youran Dairy Group Limited has entered into a Logistics and Operation Support Services Framework Agreement with Yishun Group, a subsidiary of its controlling shareholder Yili. Under this agreement, Yishun will provide logistics and operational support services, including transportation, loading, packaging, and other tasks, to China Youran Dairy Group. This arrangement, effective from August 22, 2025, to December 31, 2027, is classified as a continuing connected transaction under the Hong Kong Stock Exchange’s Listing Rules. While the transaction is exempt from independent shareholders’ approval, it is subject to reporting, annual review, and announcement requirements, indicating a structured approach to enhancing operational efficiency.

The most recent analyst rating on (HK:9858) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Youran Dairy Group Limited stock, see the HK:9858 Stock Forecast page.

China Youran Dairy Updates on Research Center Sale Agreement
Aug 22, 2025

China Youran Dairy Group Limited has announced a change in the purchaser for its Ruminant Nutrition and Health Technology Research Center. The original sale agreement with a non-wholly owned subsidiary of Yili has been terminated, and a new agreement has been executed with a wholly-owned subsidiary of Yili. This transaction, valued at an estimated RMB250 million, is classified as a connected transaction under the Hong Kong Listing Rules, exempt from independent shareholders’ approval but subject to reporting requirements.

The most recent analyst rating on (HK:9858) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Youran Dairy Group Limited stock, see the HK:9858 Stock Forecast page.

China Youran Dairy Group Establishes Nomination Committee
Aug 22, 2025

China Youran Dairy Group Limited has established a Nomination Committee as part of its corporate governance structure. This committee, formed by the board of directors, will consist of at least three members, primarily independent non-executive directors, and aims to ensure diverse representation, including gender diversity, in its membership.

The most recent analyst rating on (HK:9858) stock is a Hold with a HK$4.00 price target. To see the full list of analyst forecasts on China Youran Dairy Group Limited stock, see the HK:9858 Stock Forecast page.

China Youran Dairy Group Schedules Board Meeting to Review Interim Results
Aug 7, 2025

China Youran Dairy Group Limited has announced a board meeting scheduled for August 22, 2025, to review and approve the interim financial results for the first half of the year and discuss the potential payment of an interim dividend. This meeting could impact the company’s financial strategies and shareholder returns, reflecting its ongoing commitment to transparency and stakeholder engagement.

China Youran Dairy Announces Board Reshuffle
Jun 27, 2025

China Youran Dairy Group Limited announced changes in its board of directors and committee compositions, effective June 27, 2025. The resignations of Mr. Xu Jun, Mr. Yang Huicheng, and Mr. Shen Jianzhong were due to other work commitments, and the company expressed gratitude for their contributions. New appointments include Mr. Bai Wenzhong, Ms. Li Lin, and Ms. Huang Lin, who bring extensive experience in financial management and governance, potentially strengthening the company’s strategic oversight and operational effectiveness.

China Youran Dairy Group Announces Board Composition and Governance Structure
Jun 27, 2025

China Youran Dairy Group Limited has announced the composition of its board of directors, which includes executive, non-executive, and independent non-executive directors. The board also oversees four committees: Audit, Remuneration, Nomination, and Environmental, Social and Governance, with specific directors assigned roles as chairpersons and members. This announcement highlights the company’s governance structure, which is crucial for maintaining transparency and accountability, potentially impacting stakeholder confidence and the company’s industry positioning.

China Youran Dairy Enters Connected Transaction for Research Center Sale
Jun 27, 2025

China Youran Dairy Group Limited has entered into a connected transaction with a subsidiary of Yili, involving the sale and purchase of a Ruminant Nutrition and Health Technology Research Center. The agreement stipulates that the Vendor, a wholly-owned subsidiary of China Youran, will complete the development and construction of the Research Center, with the final consideration expected not to exceed RMB250 million. This transaction is subject to reporting and announcement requirements under the Hong Kong Listing Rules, as it involves connected persons.

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.Date of analysis: Sep 12, 2025