[ET Net News Agency, 15 January 2019] Goldman Sachs lowered its target price for China
Mengniu Dairy (02319) to HK$24.2 from HK$24.5 and maintained its "neutral" rating as
valuation looks fair.
The research house said recent news reports are pointing to a sharp decline in the
number of China's new births in 2018 (an estimated 15-16mn, or a 7-13% YoY drop). This
would imply the lowest new births in China since 1961.
The tapering off of the second child effect and unfavorable demographics are likely to
further pressure the number of new births in China. With that, Goldman lowered its infant
milk formula (IMF) industry volume growth forecast and expect competition to remain
intense in 2019-20 for the overall industry.
Goldman revised its 2018-20 EPS estimates by +0.5% to -2%, mainly to account for lower
IMF sales from 2019. It sees Mengniu further gaining share and improving its margin in
2019. (KL)
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02319 MENGNIU DAIRY
Nominal 
16.120 +0.320 (+2.025%) Others
15/01/2019 17:58
[I-bank focus]Goldman trims Mengniu Dairy (02319) to HK$24.2
| Remark: | Real time quote last updated: 26/04/2024 16:51 |
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