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Inner Mongolia Yili Industrial Group (600887) Fair Value & Analysis

Consumer Defensive · CN · Market cap 165B CNY

IM Inner Mongolia Yili Industrial Group 600887 · SHG
Price¥26.32
Fair Value¥32.50
Upside+23.5%
Quality63/100
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Healthy Growth
Solidly profitable · 10.3% net margin
Low debt · generates free cash flow
5.30% dividend yield
Ranks above peers (10/15)
Moderate moat 59/100
Evidence: High Range ¥23.32 – ¥42.64 Share as image

Fair value as of: Jul 17, 2026

From 26 valuation models · updated 21 days ago

Share price +5.0% over the past month.

A solid business, screening 23% undervalued on our models.

What matters now

  • Solid quality (63/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (¥23.32 to ¥42.64) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

¥36.22 ¥19.48 Fair Value ¥32.50 Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range ¥19.48 – ¥36.22 · fair‑value band ¥23.32 – ¥42.64 · the ¥26.32 price screens below the ¥32.50 fair value. Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Inner Mongolia Yili Industrial Group (600887) currently trades at ¥26.32, while our model-based Fair Value estimate is ¥32.50, implying the stock looks roughly 23.5% undervalued today. We read business quality at 63/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Inner Mongolia Yili Industrial Group generated revenue of 118B CNY at a net margin of 10.3%. Revenue grew 5.5% year over year. It earns a return on equity of 19.1%. Net debt stands at 26.6B CNY. Fundamentals as of Jul 17, 2026

Our scenario range runs from ¥23.32 (bear case) to ¥42.64 (bull case); at ¥26.32, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 8% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at -3% fair-value upside, at 23%, 600887 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF ¥27.45 ¥51.74 ¥89.52 80
Residual Income ¥11.35 ¥13.64 ¥34.29 76
Rev-Margin DCF ¥24.46 ¥42.02 ¥66.19 74
All 26 models by family
DCF Models
FCF DCF ¥28.03 ¥50.35 ¥99.75 38
Owner Earnings ¥32.01 ¥60.83 ¥115.16 31
5Y Revenue Exit ¥24.46 ¥42.69 ¥68.38 39
5Y EBITDA Exit ¥29.11 ¥52.86 ¥84.04 41
5Y P/E Exit ¥28.66 ¥51.87 ¥79.79 38
10Y Revenue Exit ¥24.72 ¥42.96 ¥73.05 36
10Y EBITDA Exit ¥28.60 ¥50.67 ¥86.95 37
10Y P/E Exit ¥28.30 ¥49.92 ¥83.19 35
Earnings-Based
Graham-Dodd ¥12.43 ¥69.83 ¥97.00 54
Lynch FV ¥19.56 ¥27.94 ¥36.32 50
PEG = 1.0 ¥19.56 ¥27.94 ¥36.32 46
EPV ¥21.07 ¥24.08 ¥26.71 59
Dividend Discount
Gordon GGM ¥17.36 ¥36.10 ¥57.26 70
DDM Multi-Stage ¥17.36 ¥30.44 ¥37.88 61
Multiples
P/E Multiple ¥27.43 ¥36.57 ¥45.71 63
P/S Multiple ¥23.31 ¥31.08 ¥38.85 58
P/B Multiple ¥19.44 ¥25.92 ¥32.40 55
EV/EBIT ¥32.16 ¥41.87 ¥51.59 53
EV/EBITDA ¥31.12 ¥40.49 ¥49.86 54
EV/Revenue ¥22.66 ¥31.08 ¥39.50 43
Asset-Based
NCAV (Graham) ¥4.32 ¥5.79 ¥8.64 50
Growth DCF
Growth DCF ¥27.45 ¥51.74 ¥89.52 80
Rev-Margin DCF ¥24.46 ¥42.02 ¥66.19 74
Economic Profit
Residual Income ¥11.35 ¥13.64 ¥34.29 76
ROIC Compounder ¥24.03 ¥31.53 ¥41.29 72
Growth Earnings
Growth-Adj P/E ¥28.62 ¥40.89 ¥53.15 68

Widest divergence: DCF Models (¥50.35) versus Asset-Based (¥5.79). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 118B CNY
Revenue growth (YoY) +5.5%
Net margin 10.3%
Return on equity 19.1%
Free cash flow 11.3B CNY FY2025
P/E ratio 13.4
More key figures
Operating margin 17.6%
EPS (TTM) ¥1.91
Dividend yield 5.4%
EPS growth (YoY) +10.4%
Net debt 26.6B CNY FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 61 · Market factors (momentum, volatility) 57

Profitability 55
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 51
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 96
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 85
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Inner Mongolia Yili Industrial Group Co., Ltd. engages in the production and sale of various dairy products and health drinks in China. The company offers liquid milk, dairy beverages, milk powder, yogurt, frozen drinks, cheese, milk fat, and packaged drinking water. It also exports its products. The company was founded in 1956 and is based in Hohhot, China.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Inner Mongolia Yili Industrial Group reported revenue of ¥116B in FY2025 versus ¥111B in FY2021, a compound +1.2%/yr. Reported net income was ¥11.6B in FY2025, compounding +7.4%/yr from FY2021.

Growth Quality 76/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
116B CNY
Latest YoY
+0.1%
Avg. growth/yr (3Y)
−2.0%
Avg. growth/yr (5Y)
+3.7%
Avg. growth/yr (33Y)
+28.0%
Revenue +1.2%/yr
FY21 ¥111B
FY22 ¥123B
FY23 ¥126B
FY24 ¥116B
FY25 ¥116B
Net income +7.4%/yr
FY21 ¥8.7B
FY22 ¥9.4B
FY23 ¥10.4B
FY24 ¥8.5B
FY25 ¥11.6B

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Cite: Fair Value Calculator (2026). "Inner Mongolia Yili Industrial Group Fair Value". https://www.fairvalue-calculator.com/stock/600887

Peer Group

Packaged Foods · 650 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 63 · Top 25%
Fair Value upside +24% · Above median
Return on equity (TTM) 19% · Top 25%
Return on assets 5% · Above median
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 6% · Above median
Dividend yield (TTM) 5.3% · Top 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 13.7× · Cheaper than median
P/B 3.02× · Pricier than 75% of peers
P/S (TTM) 1.40× · Pricier than median
P/FCF 2.2× · Pricier than median
EV/EBITDA 8.8× · Pricier than median
PEG 1.92× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 65 · sector 30
FUTURE 28 · sector 20
PAST 76 · sector 27
HEALTH 100 · sector 96
DIVIDEND 100 · sector 47

Insider activity: 48/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Nestlé India Limited NESTLEIND ₹1,427 ₹362.37 -75%
Britannia Industries Limited BRITANNIA ₹5,413 ₹1,870 -65%
Tata Consumer Products Limited TATACONSUM ₹1,089 ₹327.27 -70%
PT Indofood CBP Sukses Makmur Tbk ICBP 6,650 IDR 15,757 IDR +137%
Samyang Foods Co 003230 1,139,000 KRW 1,010,543 KRW -11%
Patanjali Foods Limited PATANJALI ₹413.80 ₹157.04 -62%
Vietnam Dairy Products Joint Stock Company VNM 58,500 VND 68,259 VND +17%
PT Mayora Indah Tbk, MYOR 1,750 IDR 2,699 IDR +54%
PT Cisarua Mountain Dairy Tbk CMRY 4,490 IDR 4,355 IDR -3%
Nongshim Co 004370 348,500 KRW 530,619 KRW +52%

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Frequently asked questions

Is Inner Mongolia Yili Industrial Group (600887) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of ¥32.50 versus a price of ¥26.32, about +23% (undervalued).
What is the fair value of 600887?
Our model-based fair value for Inner Mongolia Yili Industrial Group is ¥32.50 (as of Jul 17, 2026), built from audited fundamentals. The current price is ¥26.32.
What is the quality score of 600887?
Inner Mongolia Yili Industrial Group has a Quality Score of 63/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Inner Mongolia Yili Industrial Group (600887)?
Inner Mongolia Yili Industrial Group reported trailing-twelve-month revenue of about 118B CNY (latest available figure, as of Jul 17, 2026).
What is the net profit margin of 600887?
The net profit margin of Inner Mongolia Yili Industrial Group is about 10.3%, meaning it keeps roughly 10.3% of revenue as net income. Based on the latest reported figures.
Does Inner Mongolia Yili Industrial Group pay a dividend?
Inner Mongolia Yili Industrial Group currently shows a dividend yield of about 5.38% relative to its recent price (as of Jul 17, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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