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China Mengniu Dairy Co Ltd
HKEX:2319

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China Mengniu Dairy Co Ltd
HKEX:2319
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Price: 17.35 HKD 3.89% Market Closed
Market Cap: HK$67.3B

EV/IC

0.7
Current
20%
Cheaper
vs 3-y average of 0.8

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.7
=
Enterprise Value
HK$48.3B
/
Invested Capital
¥63.9B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
0.7
=
Enterprise Value
HK$48.3B
/
Invested Capital
¥63.9B

Valuation Scenarios

China Mengniu Dairy Co Ltd is trading below its 3-year average

If EV/IC returns to its 3-Year Average (0.8), the stock would be worth HK$21.61 (25% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-24%
Maximum Upside
+91%
Average Upside
24%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 0.7 HK$17.35
0%
3-Year Average 0.8 HK$21.61
+25%
5-Year Average 1.3 HK$33.17
+91%
Industry Average 0.7 HK$18.15
+5%
Country Average 0.5 HK$13.16
-24%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
HK
China Mengniu Dairy Co Ltd
HKEX:2319
67.3B HKD 0.7 36.6
JP
Goyo Foods Industry Co Ltd
TSE:2230
53.2T JPY 27 042.7 540 752.8
CH
Nestle SA
SIX:NESN
203.3B CHF 2.4 22.5
US
Mondelez International Inc
NASDAQ:MDLZ
78.7B USD 1.6 31.9
FR
Danone SA
PAR:BN
42.7B EUR 1.5 23.5
ZA
Tiger Brands Ltd
JSE:TBS
47.6B ZAR 2.7 12.5
US
Hershey Co
NYSE:HSY
37.7B USD 3.5 41.7
CN
Muyuan Foods Co Ltd
SZSE:002714
244.2B CNY 2 25
ZA
Avi Ltd
JSE:AVI
33.1B ZAR 3.9 12.8
CN
Foshan Haitian Flavouring and Food Co Ltd
SSE:603288
225.7B CNY 13 32.1
CH
Chocoladefabriken Lindt & Spruengli AG
SIX:LISN
23.2B CHF 3 31.9

Market Distribution

In line with most companies in Hong Kong
Percentile
61th
Based on 1 589 companies
61th percentile
0.7
Low
0 — 0.3
Typical Range
0.3 — 0.9
High
0.9 —
Distribution Statistics
Hong Kong
Min 0
30th Percentile 0.3
Median 0.5
70th Percentile 0.9
Max 59 382.5

China Mengniu Dairy Co Ltd
Glance View

Market Cap
67.3B HKD
Industry
Food Products

In the heart of China’s booming consumer market lies China Mengniu Dairy Co Ltd., a leading dairy product manufacturer that has woven itself into the fabric of everyday life across the nation. Established in 1999, Mengniu quickly rose from humble beginnings to become a household name, driven by its commitment to quality and innovation. At the core of its operations, Mengniu processes raw milk into a diverse range of products, including liquid milk, yogurt, and milk powder. The company’s extensive network of dairy farms and its stringent quality control measures ensure a steady supply of high-standard raw materials, enabling it to offer nutritious and safe dairy products to millions of customers across China and beyond. Mengniu's financial engine is fueled by a keen understanding of market dynamics and consumer preferences. As the burgeoning Chinese middle class continues to prioritize health and wellness, Mengniu has strategically positioned itself to capitalize on this trend by expanding its product portfolio with premium and health-oriented dairy offerings. The company invests heavily in marketing and distribution, leveraging partnerships with e-commerce giants and brick-and-mortar retailers to optimize its reach across both urban and rural areas. By emphasizing brand strength and operational efficiency, Mengniu not only thrives domestically but also carves out a presence in international markets, laying a solid foundation for sustainable growth and resilience amid the ever-changing global economic landscape.

Intrinsic Value
30.17 HKD
Undervaluation 42%
Intrinsic Value
Price HK$17.35
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