China Mengniu Dairy Company Limited (2319.HK) stock analysis

In our weekly check, China Mengniu Dairy Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7.

About China Mengniu Dairy Company Limited

China Mengniu Dairy Company Limited is a Consumer Defensive company (Packaged Foods) based in Hong Kong, listed on HKSE as 2319.HK.

What our checks show for 2319.HK

Red flags

• Operating profit does not cover the interest bill (0.8x): interest is paid from cash or new debt.
• The net margin fell by 3.8 points over 5 years, to 1.9%: the company keeps less of each sale as profit.
• Revenue fell 3.9% a year over the last 3 years.
• The net margin is only 1.9%: little room if costs rise.
• The dividend takes 858% of profit: little cushion if profit falls.
• The stock has fallen as much as 83% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 4.8 years.

Warning signs

• Earnings per share fell 33.2% a year over the last 3 years.
• Net profit fell 33.7% a year over the last 3 years.
• Return on capital (ROCE) is only 8.7%.

Strengths

• The gross margin is 39.3% and has risen by 2.6 points: pricing power is holding.
• Operating cash flow is 5.66x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 59.6% a year over the next years.
• Analysts expect the net margin to improve by 4.7 points from today's 1.9%.
• Beta 0.31: the stock usually moves less than the market.
• Actively traded: about 18.6 million shares a day.

Similar companies

0288.HK · ORK.OL · 2280.SR · BN.PA · 5285.KL · KHC

Questions

What grade does China Mengniu Dairy Company Limited (2319.HK) have?

In our weekly check, China Mengniu Dairy Company Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 3, red flags: 7. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 2319.HK stock?

This week's biggest flags for China Mengniu Dairy Company Limited: Weak interest cover, Margins falling, Weak revenue growth. In total 10 of 25 checks show a warning or a red flag.

What does China Mengniu Dairy Company Limited do?

China Mengniu Dairy Company Limited is a Consumer Defensive company (Packaged Foods) based in Hong Kong, listed on HKSE as 2319.HK.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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