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Inner Mongolia Yili Industrial Group

SHSE:600887
Snowflake Description

Outstanding track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
600887
SHSE
CN¥183B
Market Cap
  1. Home
  2. CN
  3. Food, Beverage & Tobacco
Company description

Inner Mongolia Yili Industrial Group Co., Ltd. The last earnings update was 160 days ago. More info.


Add to Portfolio Compare Print
600887 Share Price and Events
7 Day Returns
-1.4%
SHSE:600887
5.9%
CN Food
1.6%
CN Market
1 Year Returns
-5.1%
SHSE:600887
16.9%
CN Food
-8.9%
CN Market
600887 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Inner Mongolia Yili Industrial Group (600887) -1.4% -3.1% -8.6% -5.1% 59.3% 74%
CN Food 5.9% 2.4% 9.5% 16.9% 52.7% 49.4%
CN Market 1.6% -10.6% -7.3% -8.9% -15.5% -28%
1 Year Return vs Industry and Market
  • 600887 underperformed the Food industry which returned 16.9% over the past year.
  • 600887 outperformed the Market in China which returned -8.9% over the past year.
Price Volatility
600887
Industry
5yr Volatility vs Market

Value

 Is Inner Mongolia Yili Industrial Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Inner Mongolia Yili Industrial Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Inner Mongolia Yili Industrial Group.

SHSE:600887 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 26 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year CN Government Bond Rate 3.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SHSE:600887
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CN Govt Bond Rate 3.2%
Equity Risk Premium S&P Global 6.3%
Food Unlevered Beta Simply Wall St/ S&P Global 0.53
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.532 (1 + (1- 25%) (4.7%))
0.699
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.2% + (0.8 * 6.33%)
8.26%

Discounted Cash Flow Calculation for SHSE:600887 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Inner Mongolia Yili Industrial Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SHSE:600887 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.26%)
2020 3,185.57 Analyst x7 2,942.41
2021 7,370.83 Analyst x6 6,288.52
2022 9,374.27 Analyst x1 7,387.29
2023 10,909.70 Est @ 16.38% 7,941.02
2024 12,265.28 Est @ 12.43% 8,246.26
2025 13,449.83 Est @ 9.66% 8,352.42
2026 14,488.22 Est @ 7.72% 8,310.49
2027 15,410.30 Est @ 6.36% 8,164.67
2028 16,244.78 Est @ 5.42% 7,949.82
2029 17,016.49 Est @ 4.75% 7,691.82
Present value of next 10 years cash flows CN¥73,274.00
SHSE:600887 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CN¥17,016.49 × (1 + 3.2%) ÷ (8.26% – 3.2%)
CN¥346,781.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥346,781.48 ÷ (1 + 8.26%)10
CN¥156,752.77
SHSE:600887 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥73,274.00 + CN¥156,752.77
CN¥230,026.77
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥230,026.77 / 6,065.89
CN¥37.92
SHSE:600887 Discount to Share Price
Calculation Result
Value per share (CNY) From above. CN¥37.92
Current discount Discount to share price of CN¥29.43
= -1 x (CN¥29.43 - CN¥37.92) / CN¥37.92
22.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Inner Mongolia Yili Industrial Group is available for.
Intrinsic value
22%
Share price is CN¥29.43 vs Future cash flow value of CN¥37.92
Current Discount Checks
For Inner Mongolia Yili Industrial Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Inner Mongolia Yili Industrial Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Inner Mongolia Yili Industrial Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Inner Mongolia Yili Industrial Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Inner Mongolia Yili Industrial Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SHSE:600887 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in CNY CN¥1.16
SHSE:600887 Share Price ** SHSE (2020-04-03) in CNY CN¥29.43
China Food Industry PE Ratio Median Figure of 112 Publicly-Listed Food Companies 41.54x
China Market PE Ratio Median Figure of 3,200 Publicly-Listed Companies 32.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Inner Mongolia Yili Industrial Group.

SHSE:600887 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SHSE:600887 Share Price ÷ EPS (both in CNY)

= 29.43 ÷ 1.16

25.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inner Mongolia Yili Industrial Group is good value based on earnings compared to the CN Food industry average.
  • Inner Mongolia Yili Industrial Group is good value based on earnings compared to the China market.
Price based on expected Growth
Does Inner Mongolia Yili Industrial Group's expected growth come at a high price?
Raw Data
SHSE:600887 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 25.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts
10.9%per year
China Food Industry PEG Ratio Median Figure of 59 Publicly-Listed Food Companies 1.44x
China Market PEG Ratio Median Figure of 1,274 Publicly-Listed Companies 1.27x

*Line of best fit is calculated by linear regression .

SHSE:600887 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 25.37x ÷ 10.9%

2.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inner Mongolia Yili Industrial Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Inner Mongolia Yili Industrial Group's assets?
Raw Data
SHSE:600887 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in CNY CN¥3.99
SHSE:600887 Share Price * SHSE (2020-04-03) in CNY CN¥29.43
China Food Industry PB Ratio Median Figure of 129 Publicly-Listed Food Companies 3.1x
China Market PB Ratio Median Figure of 3,691 Publicly-Listed Companies 2.26x
SHSE:600887 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SHSE:600887 Share Price ÷ Book Value per Share (both in CNY)

= 29.43 ÷ 3.99

7.37x

* Primary Listing of Inner Mongolia Yili Industrial Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Inner Mongolia Yili Industrial Group is overvalued based on assets compared to the CN Food industry average.
X
Value checks
We assess Inner Mongolia Yili Industrial Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Food industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Food industry average (and greater than 0)? (1 check)
  5. Inner Mongolia Yili Industrial Group has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Inner Mongolia Yili Industrial Group expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Inner Mongolia Yili Industrial Group expected to grow at an attractive rate?
  • Inner Mongolia Yili Industrial Group's earnings growth is expected to exceed the low risk savings rate of 3.2%.
Growth vs Market Checks
  • Inner Mongolia Yili Industrial Group's earnings growth is positive but not above the China market average.
  • Inner Mongolia Yili Industrial Group's revenue growth is positive but not above the China market average.
Annual Growth Rates Comparison
Raw Data
SHSE:600887 Future Growth Rates Data Sources
Data Point Source Value (per year)
SHSE:600887 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts 10.9%
SHSE:600887 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts 10.5%
China Food Industry Earnings Growth Rate Market Cap Weighted Average 22.4%
China Food Industry Revenue Growth Rate Market Cap Weighted Average 16.8%
China Market Earnings Growth Rate Market Cap Weighted Average 20.8%
China Market Revenue Growth Rate Market Cap Weighted Average 15.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SHSE:600887 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SHSE:600887 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 121,264 10,036 1
2021-12-31 111,334 11,856 8,812 23
2020-12-31 99,954 10,078 7,516 26
2020-04-07
2019-12-31 89,811 10,107 7,063 25
SHSE:600887 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-09-30 86,903 7,052 7,023
2019-06-30 84,681 7,107 6,774
2019-03-31 82,930 8,305 6,615
2018-12-31 79,553 8,625 6,440
2018-09-30 76,914 8,066 6,111
2018-06-30 74,507 9,460 6,083
2018-03-31 72,021 9,206 6,367
2017-12-31 68,058 7,006 6,001
2017-09-30 66,909 7,234 6,209
2017-06-30 64,016 8,145 5,814
2017-03-31 61,073 11,321 5,842
2016-12-31 60,609 12,817 5,662

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Inner Mongolia Yili Industrial Group's earnings are expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
  • Inner Mongolia Yili Industrial Group's revenue is expected to grow by 10.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SHSE:600887 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below

All data from Inner Mongolia Yili Industrial Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SHSE:600887 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.65 1.65 1.65 1.00
2021-12-31 1.44 1.74 1.23 21.00
2020-12-31 1.23 1.36 0.99 24.00
2020-04-07
2019-12-31 1.16 1.22 1.13 24.00
SHSE:600887 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-09-30 1.16
2019-06-30 1.11
2019-03-31 1.08
2018-12-31 1.06
2018-09-30 1.01
2018-06-30 1.01
2018-03-31 1.05
2017-12-31 0.99
2017-09-30 1.02
2017-06-30 0.95
2017-03-31 0.96
2016-12-31 0.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Inner Mongolia Yili Industrial Group is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Inner Mongolia Yili Industrial Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the China market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the China market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Inner Mongolia Yili Industrial Group has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Inner Mongolia Yili Industrial Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Inner Mongolia Yili Industrial Group's growth in the last year to its industry (Food).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Inner Mongolia Yili Industrial Group's year on year earnings growth rate has been positive over the past 5 years.
  • Inner Mongolia Yili Industrial Group's 1-year earnings growth exceeds its 5-year average (14.9% vs 10.5%)
  • Inner Mongolia Yili Industrial Group's earnings growth has exceeded the CN Food industry average in the past year (14.9% vs 11%).
Earnings and Revenue History
Inner Mongolia Yili Industrial Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Inner Mongolia Yili Industrial Group Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SHSE:600887 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 86,902.56 7,022.62 24,673.77 621.87
2019-06-30 84,681.25 6,774.45 24,337.74 545.75
2019-03-31 82,930.34 6,615.28 24,110.27 493.07
2018-12-31 79,553.28 6,439.75 22,793.92 426.87
2018-09-30 76,914.32 6,111.44 21,910.02 212.96
2018-06-30 74,507.41 6,082.60 21,197.79 291.64
2018-03-31 72,020.97 6,367.47 19,936.23 235.35
2017-12-31 68,058.17 6,000.88 18,651.47 209.17
2017-09-30 66,909.04 6,209.13 18,166.83 134.66
2017-06-30 64,016.20 5,814.43 17,924.73
2017-03-31 61,073.37 5,841.72 16,788.07
2016-12-31 60,609.22 5,661.81 17,518.80
2016-09-30 60,651.78 5,384.43 18,187.61
2016-06-30 60,295.32 5,181.10 17,816.99
2016-03-31 60,693.76 4,882.76 17,264.87
2015-12-31 60,359.87 4,631.79 16,550.89
2015-09-30 58,246.36 4,223.53 15,133.64
2015-06-30 57,116.78 4,513.59 13,753.52
2015-03-31 56,318.18 4,362.83 13,724.62
2014-12-31 54,436.43 4,144.28 13,090.42
2014-09-30 53,277.17 4,229.72 12,091.48
2014-06-30 51,228.38 3,742.15 11,549.52
2014-03-31 49,164.90 3,784.26 10,932.89
2013-12-31 47,778.87 3,187.24 10,805.47
2013-09-30 45,652.72 2,866.52 10,334.28
2013-06-30 44,830.94 2,693.64 10,879.94

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Inner Mongolia Yili Industrial Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Inner Mongolia Yili Industrial Group used its assets more efficiently than the CN Food industry average last year based on Return on Assets.
  • Inner Mongolia Yili Industrial Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Inner Mongolia Yili Industrial Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Food industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Inner Mongolia Yili Industrial Group has a total score of 6/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Inner Mongolia Yili Industrial Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Inner Mongolia Yili Industrial Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Inner Mongolia Yili Industrial Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Inner Mongolia Yili Industrial Group's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Inner Mongolia Yili Industrial Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Inner Mongolia Yili Industrial Group Company Filings, last reported 6 months ago.

SHSE:600887 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 24,496.22 8,601.28 7,769.44
2019-06-30 25,562.74 7,705.57 11,242.06
2019-03-31 26,436.48 700.29 11,962.80
2018-12-31 28,037.22 1,523.29 11,251.50
2018-09-30 26,552.35 793.29 12,427.16
2018-06-30 24,673.75 3,673.29 15,334.86
2018-03-31 27,313.00 6,060.29 19,468.38
2017-12-31 25,239.82 7,860.29 21,823.07
2017-09-30 24,331.74 6,651.29 21,543.55
2017-06-30 22,902.40 6,870.29 18,627.97
2017-03-31 24,961.27 3,050.29 15,815.31
2016-12-31 23,235.89 150.29 13,823.65
2016-09-30 21,792.04 590.29 14,928.92
2016-06-30 20,574.89 790.29 10,879.06
2016-03-31 21,716.29 5,390.29 12,572.86
2015-12-31 20,145.92 6,190.29 13,083.67
2015-09-30 19,468.52 5,914.81 14,250.71
2015-06-30 18,990.52 6,939.77 14,163.73
2015-03-31 20,127.81 8,206.22 14,659.20
2014-12-31 18,821.55 8,775.96 14,272.62
2014-09-30 18,127.61 7,736.99 14,299.93
2014-06-30 16,898.69 7,465.91 14,397.53
2014-03-31 17,358.09 4,677.39 8,884.41
2013-12-31 16,312.78 4,086.29 11,073.35
2013-09-30 15,611.52 4,118.63 11,858.87
2013-06-30 14,735.12 4,088.63 10,305.87
  • Inner Mongolia Yili Industrial Group's level of debt (34.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (42.7% vs 34.6% today).
  • Debt is well covered by operating cash flow (83.2%, greater than 20% of total debt).
  • Inner Mongolia Yili Industrial Group earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Inner Mongolia Yili Industrial Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Inner Mongolia Yili Industrial Group has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Inner Mongolia Yili Industrial Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.38%
Current annual income from Inner Mongolia Yili Industrial Group dividends. Estimated to be 2.9% next year.
If you bought CN¥2,000 of Inner Mongolia Yili Industrial Group shares you are expected to receive CN¥48 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Inner Mongolia Yili Industrial Group's pays a higher dividend yield than the bottom 25% of dividend payers in China (0.46%).
  • Inner Mongolia Yili Industrial Group's dividend is above the markets top 25% of dividend payers in China (2.03%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SHSE:600887 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
China Food Industry Average Dividend Yield Market Cap Weighted Average of 82 Stocks 1.4%
China Market Average Dividend Yield Market Cap Weighted Average of 2587 Stocks 1.9%
China Minimum Threshold Dividend Yield 10th Percentile 0.2%
China Bottom 25% Dividend Yield 25th Percentile 0.5%
China Top 25% Dividend Yield 75th Percentile 2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SHSE:600887 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.19 1.00
2021-12-31 0.93 17.00
2020-12-31 0.78 20.00
2020-04-07
2019-12-31 0.73 20.00
SHSE:600887 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-04-01 0.700 2.330
2018-06-11 0.700 2.788
2017-05-02 0.600 2.324
2016-04-22 0.450 2.585
2015-05-21 0.400 2.530
2014-07-09 0.267 1.954
2013-05-02 0.093 0.778
2013-01-15 0.093 0.974
2012-02-28 0.083 1.174

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Inner Mongolia Yili Industrial Group has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Inner Mongolia Yili Industrial Group only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Inner Mongolia Yili Industrial Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Inner Mongolia Yili Industrial Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Inner Mongolia Yili Industrial Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Inner Mongolia Yili Industrial Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Inner Mongolia Yili Industrial Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gang Pan
COMPENSATION CN¥14,865,607
AGE 49
CEO Bio

Mr. Gang Pan has been Chairman of Inner Mongolia Yili Industrial Group Co., Ltd since June 2005 and serves as its President. Mr. Pan served as President of Inner Mongolia Yili Industrial Group Co., Ltd since June 2005 and served as its Chief Executive Officer. Mr. Pan served as the Assistant to the President of Liquid Milk Business and served as its General Manager. Mr. Pan was granted the honor of Top 10 Personalities in China's Food Safety in 2006.

CEO Compensation
  • Gang's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Gang's remuneration is lower than average for companies of similar size in China.
Management Team

Gang Pan

TITLE
Chairman of the Board & President
COMPENSATION
CN¥15M
AGE
49

Cheng Zhao

TITLE
CFO, VP & Director
COMPENSATION
CN¥6M
AGE
48

Rui Sheng Wang

TITLE
Assistant to the President & Director
COMPENSATION
CN¥887K
AGE
54

Li Ping Hu

TITLE
VP, Secretary & Director
COMPENSATION
CN¥4M
AGE
48
TENURE
14.8 yrs

Chun Hai Liu

TITLE
VP & Director
COMPENSATION
CN¥6M
AGE
55
TENURE
14.8 yrs

Xiangmin Qiu

TITLE
Secretary of the Board
AGE
44
Board of Directors Tenure

Average tenure and age of the Inner Mongolia Yili Industrial Group board of directors in years:

14.8
Average Tenure
53
Average Age
  • The average tenure for the Inner Mongolia Yili Industrial Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Gang Pan

TITLE
Chairman of the Board & President
COMPENSATION
CN¥15M
AGE
49
TENURE
14.8 yrs

Cheng Zhao

TITLE
CFO, VP & Director
COMPENSATION
CN¥6M
AGE
48
TENURE
14.8 yrs

Rui Sheng Wang

TITLE
Assistant to the President & Director
COMPENSATION
CN¥887K
AGE
54
TENURE
13.3 yrs

Li Ping Hu

TITLE
VP, Secretary & Director
COMPENSATION
CN¥4M
AGE
48
TENURE
14.8 yrs

Chun Hai Liu

TITLE
VP & Director
COMPENSATION
CN¥6M
AGE
55
TENURE
14.8 yrs

Xiao Gang Wang

TITLE
Chairman of the Supervisory Board
COMPENSATION
CN¥2M
AGE
45
TENURE
13.3 yrs

Jin Guo Yang

TITLE
Director
COMPENSATION
CN¥62K
AGE
55

Hong Gao

TITLE
Independent Director
COMPENSATION
CN¥250K
AGE
52

De Bu Gao

TITLE
Independent Director
COMPENSATION
CN¥250K
AGE
63

Zhang Ping

TITLE
Director
AGE
57
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CN¥) Value (CN¥)
X
Management checks
We assess Inner Mongolia Yili Industrial Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Inner Mongolia Yili Industrial Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Inner Mongolia Yili Industrial Group Co., Ltd. produces and sells dairy products in China and internationally. The company offers liquid milk, milk powder, yoghourt, ice cream, and cheese. Inner Mongolia Yili Industrial Group Co., Ltd. has strategic partnership with SterilgardaAlimentiS.p.A for the development of dairy products. The company was founded in 1956 and is based in Hohhot, China.

Details
Name: Inner Mongolia Yili Industrial Group Co., Ltd.
600887
Exchange: SHSE
Founded: 1956
CN¥183,129,123,488
6,065,886,833
Website: http://www.yili.com
Address: Inner Mongolia Yili Industrial Group Co., Ltd.
No. 8, Jinshan Road,
Jinshan Development Zone,
Hohhot,
Inner Mongolia Province, 010110,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SHSE 600887 Domestic Shares Shanghai Stock Exchange CN CNY 07. Aug 1996
XSSC 600887 Domestic Shares Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect CN CNY 07. Aug 1996
Number of employees
Current staff
Staff numbers
0
Inner Mongolia Yili Industrial Group employees.
Industry
Packaged Foods and Meats
Food, Beverage & Tobacco
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/07 14:42
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/20
Last earnings filing: 2019/10/30
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.