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Stock Analysis & ValuationMaiquer Group CO.,LTD (002719.SZ)

Professional Stock Screener
Previous Close
$8.78
Sector Valuation Confidence Level
Low
Valuation methodValue, $Upside, %
Artificial intelligence (AI)25.74193
Intrinsic value (DCF)2.95-66
Graham-Dodd Methodn/a
Graham Formula2.40-73

Strategic Investment Analysis

Company Overview

Maiquer Group Co., Ltd. is a prominent Chinese dairy and food processing company headquartered in Changji, China, with its shares traded on the Shenzhen Stock Exchange. Operating within the Consumer Defensive sector, the company specializes in the production and distribution of a diverse portfolio of dairy and food products. Its core offerings include sterilized milk, yogurt, protein drinks, ice cream, popsicles, and quick-frozen foods. Beyond its primary dairy focus, Maiquer Group has expanded its operations to include agricultural products, livestock breeding, agricultural cultivation services, and bakery products, creating an integrated supply chain. The company plays a significant role in China's vast food distribution industry, catering to the nutritional needs of a massive domestic consumer base. Despite facing intense competition in the Chinese dairy market, Maiquer leverages its regional presence and diversified product line to maintain its market position. The company's operations are crucial within the essential food and beverage sector, contributing to food security and consumer staples availability in its operating regions.

Investment Summary

Maiquer Group presents a high-risk investment profile based on its latest financial results. The company reported a substantial net loss of CNY -230.48 million on revenue of CNY 635.21 million for the period, with diluted EPS of -CNY 1.32. While the company maintains a modest cash position of CNY 31.74 million, it carries total debt of CNY 71.28 million, indicating potential liquidity concerns. The positive operating cash flow of CNY 4.12 million is overshadowed by negative capital expenditures of CNY -13.05 million, suggesting limited investment in growth initiatives. The beta of 0.421 indicates lower volatility compared to the broader market, which may appeal to risk-averse investors, but the absence of dividend payments and persistent losses raise significant concerns about the company's profitability and long-term sustainability in China's highly competitive dairy market.

Competitive Analysis

Maiquer Group operates in China's intensely competitive dairy and food distribution sector, where it faces significant challenges in establishing a sustainable competitive advantage. The company's positioning appears to be regional rather than national, with its headquarters in Changji limiting its scale compared to industry giants. Maiquer's diversified product portfolio spanning dairy, beverages, and frozen foods provides some revenue stability but may also indicate a lack of focused competitive specialization. The company's financial performance suggests it lacks the economies of scale enjoyed by larger competitors, resulting in negative profitability despite moderate revenue generation. In the Chinese dairy market, competitive advantages typically derive from brand recognition, distribution network strength, and supply chain integration—areas where Maiquer appears to be disadvantaged relative to market leaders. The company's expansion into agricultural services and bakery products represents an attempt at vertical integration, but this diversification may be stretching limited resources thin rather than creating meaningful synergies. Without clear differentiation in product quality, brand strength, or cost leadership, Maiquer's competitive positioning remains challenging in a market dominated by well-capitalized competitors with national reach and stronger consumer brand loyalty.

Major Competitors

  • China Mengniu Dairy Company Limited (2319.HK): As one of China's largest dairy producers, Mengniu enjoys massive scale, strong brand recognition, and extensive national distribution networks. The company's strengths include diversified product portfolio, significant R&D capabilities, and strategic partnerships. However, Mengniu faces challenges with product safety concerns that have affected consumer trust historically. Compared to Maiquer, Mengniu operates at a vastly different scale with nationwide presence and significantly stronger financial resources.
  • Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SS): Yili is China's leading dairy company with dominant market share, strong brand equity, and comprehensive product offerings. The company benefits from vertical integration, extensive distribution channels, and international expansion. Weaknesses include exposure to raw milk price volatility and intense competition. Yili's national scale and brand strength create significant barriers for regional players like Maiquer, which cannot match Yili's distribution reach or marketing power.
  • Beingmate Baby & Child Food Co., Ltd. (002570.SZ): Beingmate specializes in infant formula and baby food products, representing a more focused competitive segment. The company has established brand recognition in the baby nutrition market and technical expertise in formula production. However, Beingmate has faced financial challenges and product safety issues. While operating in adjacent dairy segments, Beingmate's focus on infant nutrition differentiates it from Maiquer's broader dairy portfolio, though both face similar challenges in competing against industry giants.
  • Xinjiang Tianrun Dairy Co., Ltd. (002582.SZ): Tianrun Dairy, also based in Xinjiang, represents a direct regional competitor to Maiquer with similar geographic focus. The company benefits from proximity to dairy sources in Xinjiang and regional brand recognition. However, Tianrun faces limitations in expanding beyond its regional base and competes with national players. As a fellow regional dairy processor, Tianrun's competitive position closely mirrors Maiquer's challenges with scale limitations and national market penetration.
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