Jinwu Financial News | According to Orient Securities Research Report, Mengniu Dairy (02319) recently released the 2023 results announcement. In 2023, it achieved revenue of 98.624 billion yuan (yoy +6.5%) and achieved net profit of 4.809 billion yuan (yoy -9.3%) in 2023. According to the bank, the company achieved revenue of 82.07 billion yuan (yoy +4.9%) in 2023, with steady growth. In the long run, the company has benefited from the increase in milk consumption per capita in sinking markets such as rural areas, as well as the upgrading trend of fresh milk, cheese and other products, and still has good investment value.
According to the 23-year results announcement, revenue was lowered, gross profit margin was raised, and expense ratios were raised for 23, 24, and 25. The bank adjusted the company's 23-25 earnings per share forecast to 1.22, 1.44, and 1.59 yuan (the original forecast was 1.57, 1.90, and 2.09 yuan). Combined with comparable companies, 16 times PE was awarded for 24 years, calculated at the HKD/RMB exchange rate of 0.91, corresponding to a target price of HK$25.42, maintaining the purchase rating.