1230.HK - Yashili International Holdings Ltd

HKSE - HKSE Delayed Price. Currency in HKD
0.950
+0.010 (+1.06%)
As of 3:59PM HKT. Market open.
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Previous Close0.940
Open0.970
Bid0.940 x 0
Ask0.960 x 0
Day's Range0.930 - 1.000
52 Week Range0.860 - 1.600
Volume230,000
Avg. Volume368,307
Market Cap4.508B
Beta (3Y Monthly)0.55
PE Ratio (TTM)75.85
EPS (TTM)0.013
Earnings DateMar 27, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend Date2019-06-12
1y Target Est1.54
  • Success in China Is All About Having the Right Formula
    Bloomberg

    Success in China Is All About Having the Right Formula

    (Bloomberg Opinion) -- Selling infant formula to China seems so 2016.The country abandoned its one-child policy three years ago, spurring expectations of a baby boom. These have been well and truly dashed. Fertility rates remain stuck around the levels they’ve been at for two decades, and the 15 million children born in 2018 was the lowest figure since 1961. Roughly five Indians are born each year for every three Chinese.So what’s the country’s second-biggest milk producer China Mengniu Dairy Co. doing paying an Amazon.com Inc. valuation for milk-powder producer Bellamy’s Australia Ltd.? The answer tells you a lot about the changing prospects for the Chinese consumer.Bellamy’s, which makes organic milk and infant foods and first sold shares to the public as recently as 2014. Mengniu’s cash offer, which Bellamy’s board has recommended, is a 59% premium to the last pre-deal closing price and values the company at A$1.5 billion ($1 billion), about 30 times its Ebitda in the last fiscal year (Amazon gets just 27 times).Formula producers such as Bellamy’s, Nestle SA, and Danone SA have gone through a rough patch in China recently, driven by the slowing birth rate and a general softening in consumer spending.China’s retail sales grew just 7.5% from a year earlier in August, the National Bureau of Statistics reported Monday, the second-slowest pace since the SARS epidemic in 2003. Fixed-asset investment in food processing plants year-to-date slumped 9.4% from a year earlier, suggesting companies see dismal prospects for growth.So what’s so special about Bellamy’s? For one thing, it still benefits from the long shadow of China’s 2008 tainted-milk scandal, when products including those made by Mengniu, its majority-controlled affiliate Yashili International Holdings Ltd., and arch-rival Inner Mongolia Yili Industrial Group Co. were found to have contained the toxic chemical melamine.That’s made foreign-branded infant formula such a hot commodity in China that Australian retailers have had to implement maximum-purchase rules to stop the booming buy-overseas, post-back-home trade from clearing their shelves.That’s not enough on its own, though, given the general headwinds. After all, Mengniu tried to capitalize on this trend back in 2015 when Yashili invested 1 billion yuan ($141 million) in a New Zealand factory. The mid- to high-end image of the Kieember and Kieevagour brands produced there clearly haven’t been a Bellamy’s-level success.Yashili announced plans to sell a 49% stake in the New Zealand business to Danone for the equivalent of about $201 million last December, but the sale was canceled last month amid unsuccessful attempts to strike a broader agreement between the two companies. While the valuation uplift was clearly a positive, it’s notable that neither side was desperate to gain or retain control of the asset without getting something else in return.What makes Bellamy’s different is that it eschews the mid-range altogether. Its cans of formula sell on Alibaba Group Holding Ltd.’s Tmall marketplace for 50% more than shoppers pay in Australia, where the organic branding means it’s already a premium line. It’s not so much a bet on China’s baby boom, as on growing wealth disparities and rising affluence in a country that already accounts for a third of the world’s luxury spendingEven in that context, Mengniu will struggle to make a good return on its investment. The company plans to invest to increase capacity and drive sales, Chief Executive Officer Minfang Lu said in a statement. That’s easier said than done, given that it takes three years to convert dairy farms to organic production. Australia is a relatively small organic milk producer, with output of about 50 million liters in 2017 compared with 880 million liters in China, according to KPMG.Mengniu will need to be confident this brand can hold its own against Yili, Nestle and Danone at the top end of a fiercely competitive Chinese market. Three-quarters of its revenue at present comes from sales in Australia. While Bellamy’s is often treated as a play on Chinese demand, it’s not there yet.Shareholders in the target would do well to sell into this offer. Those in Mengniu should hope they don’t end up crying over spilled milk.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Does Yashili International Holdings Ltd (HKG:1230) Have A Volatile Share Price?
    Simply Wall St.

    Does Yashili International Holdings Ltd (HKG:1230) Have A Volatile Share Price?

    Anyone researching Yashili International Holdings Ltd (HKG:1230) might want to consider the historical volatility of...

  • Does Yashili International Holdings Ltd's (HKG:1230) CEO Pay Compare Well With Peers?
    Simply Wall St.

    Does Yashili International Holdings Ltd's (HKG:1230) CEO Pay Compare Well With Peers?

    In 2017 Chopin Zhang was appointed CEO of Yashili International Holdings Ltd (HKG:1230). This analysis aims first to...

  • Is There An Opportunity With Yashili International Holdings Ltd's (HKG:1230) 29% Undervaluation?
    Simply Wall St.

    Is There An Opportunity With Yashili International Holdings Ltd's (HKG:1230) 29% Undervaluation?

    In this article we are going to estimate the intrinsic value of Yashili International Holdings Ltd (HKG:1230) by...

  • Reuters

    BRIEF-Yashili International Holdings Says Unit Entered Agreement With Burra Foods To Purchase Base Powder Products

    March 29 (Reuters) - Yashili International Holdings Ltd : * NEWOU ENTERED AGREEMENT WITH BURRA FOODS TO PURCHASE BASE POWDER PRODUCTS Source text for Eikon: Further company coverage:

  • Reuters

    BRIEF-Yashili International Holdings Posts FY Profit Attributable RMB52.3 Mln

    March 27 (Reuters) - Yashili International Holdings Ltd : * FY PROFIT ATTRIBUTABLE RMB52.3 MILLION VERSUS LOSS OF RMB179.8 MILLION * PROPOSED SPECIAL DIVIDEND FOR YEAR IS RMB1 CENT PER SHARE * FY REVENUE ...

  • Investors Who Bought Yashili International Holdings (HKG:1230) Shares Five Years Ago Are Now Down 73%
    Simply Wall St.

    Investors Who Bought Yashili International Holdings (HKG:1230) Shares Five Years Ago Are Now Down 73%

    We're definitely into long term investing, but some companies are simply bad investments over any time frame. It hits us in the gut when we see fellow investors suffer aRead More...

  • Reuters

    BRIEF-Yashili International Says Yashili New Zealand Entered Into Supply Agreement

    Feb 28 (Reuters) - Yashili International Holdings Ltd : * YASHILI INTERNATIONAL HOLDINGS LTD - YASHILI NEW ZEALAND ENTERED INTO A SUPPLY AGREEMENT WITH PURCHASERS DAPH, DANONE ELN AND AFFILIA Source text ...

  • Reuters

    BRIEF-Yashili International Holdings Says Unit To Provide Processing Services To Junlebao

    Jan 28 (Reuters) - Yashili International Holdings Ltd : * UNIT ENTERED PROCESSING DEAL WITH JUNLEBAO TO PROVIDE PROCESSING SERVICES IN RESPECT OF WHOLE MILK POWDER TO JUNLEBAO Source text for Eikon: Further ...

  • Reuters

    BRIEF-Yashili International Holdings Enters Supply Agreement With Daph And Danone Eln

    Jan 18 (Reuters) - Yashili International Holdings Ltd : * YASHILI INTERNATIONAL HOLDINGS LTD - UNIT ENTERED INTO SUPPLY AGREEMENT WITH DAPH AND DANONE ELN * YASHILI INTERNATIONAL HOLDINGS - YASHILI NEW ...

  • Reuters

    BRIEF-Yashili International Expects Mengniu Group To Increase Purchase Amount Of Goods In 2019

    Dec 31 (Reuters) - Yashili International Holdings Ltd : * EXPECTS MENGNIU GROUP WILL INCREASE ITS PURCHASE AMOUNT OF GOODS FROM GROUP SINCE 2019 * EXPECTS THAT IT WILL INCREASE ITS PURCHASE AMOUNT OF GOODS ...

  • Reuters

    BRIEF-Yashili International's Unit To Dispose 140.6 Mln Shares In Yashili NZ To Danone Asia Pacific Holdings

    Dec 14 (Reuters) - Yashili International Holdings Ltd : * YASHILI (HK) TO DISPOSE 140.6 MILLION ORDINARY SHARES IN YASHILI NEW ZEALAND TO DANONE ASIA PACIFIC HOLDINGS * CONSIDERATION OF DISPOSAL IS NOT ...

  • What You Must Know About Yashili International Holdings Ltd’s (HKG:1230) Financial Strength
    Simply Wall St.

    What You Must Know About Yashili International Holdings Ltd’s (HKG:1230) Financial Strength

    Yashili International Holdings Ltd (HKG:1230) is a small-cap stock with a market capitalization of HK$6.3b. While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, Read More...

  • Reuters

    BRIEF-Yashili International Holdings Says Unit Entered Letter Of Intent With Danone Eln

    Oct 9 (Reuters) - Yashili International Holdings Ltd : * UNIT ENTERED LETTER OF INTENT WITH DANONE ELN * DEAL FOR PROPOSED DEVELOPMENT AND MANUFACTURE OF INFANT FORMULA PRODUCTS BY DANONE ELN FOR DUMEX ...

  • Reuters

    BRIEF-Yashili International Holdings Announces Distribution Agreement With Unit Of Mengniu Dairy

    Oct 2 (Reuters) - Yashili International Holdings Ltd : * INNER MONGOLIA DIGITAL TECHNOLOGY TO DISTRIBUTE PRODUCTS OF GROUP VIA A NUMBER OF DESIGNATED E-COMMERCE PLATFORMS Source text for Eikon: Further ...