Summary of Key Points Core Viewpoint - On July 23, 21 Hong Kong-listed companies conducted share buybacks, totaling 20.97 million shares and an aggregate amount of HKD 44.00 million [1][2]. Group 1: Buyback Details - VITASOY INT'L repurchased 1.402 million shares for HKD 12.98 million, with a highest price of HKD 9.260 and a lowest price of HKD 9.230, accumulating HKD 151.00 million in buybacks for the year [1][2]. - China Eastern Airlines repurchased 2.50 million shares for HKD 7.32 million, with a highest price of HKD 2.970 and a lowest price of HKD 2.900, totaling HKD 601.30 million in buybacks for the year [1][2]. - China Feihe repurchased 1.00 million shares for HKD 4.70 million, with a highest price of HKD 4.700, accumulating HKD 93.00 million in buybacks for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on July 23 was from VITASOY INT'L at HKD 12.98 million, followed by China Eastern Airlines at HKD 7.32 million [1][2]. - In terms of share quantity, the most shares repurchased were by Shoujia Technology at 7.40 million shares, followed by China Eastern Airlines at 2.50 million shares [1][2].

Investment Rating - The report maintains a "Recommended" rating for the food and beverage industry, particularly highlighting opportunities in the liquor sector and food products [1] Core Insights - The liquor industry is undergoing extreme pressure testing, with a significant focus on inventory clearance and bottoming out of financial reports. The second quarter has shown weak demand due to seasonal factors and regulatory impacts, leading to a notable decline in sales and pricing pressures [5][10] - High-end liquor brands like Moutai are expected to maintain growth, while mid-tier brands face challenges with declining revenues and profits. The overall industry is in a deep clearance phase, with potential for recovery as regulations stabilize [5][12] - The consumer goods sector shows mixed performance, with snacks and beverages remaining strong, while other segments like frozen foods and chain restaurants face ongoing demand pressures [20][25] Summary by Sections 1. Liquor Sector - The liquor industry is experiencing extreme pressure, with weak demand in the second quarter and significant inventory levels. Major brands like Moutai and Wuliangye are expected to show modest growth, while others like Yanghe and Luzhou Laojiao are facing declines [5][11][12] - Moutai's revenue is projected to grow by 7% in Q2, while Wuliangye is expected to see a 1% increase. In contrast, brands like Yanghe and Luzhou Laojiao are forecasted to decline by 35% and 8% respectively [11][12] 2. Consumer Goods - The overall demand for consumer goods remains weak, but segments like snacks and beverages are performing well. For instance, East Peak is expected to see a 33% increase in revenue, while other snack brands are also showing positive trends [20][25] - The beverage sector is projected to see positive growth, with major brands like Qingdao Beer and Yanjing expected to report increases in revenue and profit [25][26] 3. Investment Recommendations - The report suggests focusing on high-performing stocks in the short term while considering long-term investments in liquor brands that are currently at their bottom. Brands like Moutai and Gujing are recommended for their lower risk profiles [7][8] - For consumer goods, companies like Anqi and East Peak are highlighted for their growth potential, while traditional dairy brands like Yili and Mengniu are suggested for a bundled investment approach [7][8]

Group 1 - The top three companies with the highest short positions are WuXi AppTec (02359), CATL (03750), and COSCO Shipping Holdings (01919), with short ratios of 23.99%, 17.39%, and 14.14% respectively [1][2] - The companies with the largest increase in short positions are Giant Biogene (02367), WuXi AppTec (02359), and Henderson Land Development (00012), with increases of 2.05%, 1.43%, and 1.41% respectively [1][2] - The companies with the largest decrease in short positions are SF Holding (06936), Far East Horizon (03360), and Jiumaojiu International Holdings (09922), with decreases of -1.94%, -1.22%, and -1.18% respectively [1][3] Group 2 - The top ten companies with the highest short ratios include Ganfeng Lithium (01772) at 13.09%, Xiexin Technology (03800) at 12.57%, and Shandong Gold (01787) at 12.35% [2] - The companies with the largest increase in short ratios also include Fuyou Glass (06865) at 12.07% and Tigermed (03347) at 9.81% [2] - The companies with the largest decrease in short ratios include Vanke Enterprise (02202) at 11.38% and Green Leaf Pharmaceutical (02186) at 11.96% [3][4]

Summary of the Conference Call on the Infant Formula Industry Industry Overview - The report focuses on the **infant formula food industry in China**, particularly following the implementation of the new national standards for infant formula in February 2023, which provides a regulatory framework for formula registration [1][3] - The new standards emphasize nutritional requirements, product safety, and production process regulations, prompting companies to reapply for formula registration to comply with these standards [1][4] Key Insights and Arguments - The report includes sections on **industry overview, supply chain analysis, competitive landscape, and company profiles** [2] - A comparison between the new national standards and EU standards highlights differences in mandatory vitamins and minerals, indicating varying safety and quality requirements across regions [3] - The market demand for infant formula is declining due to a decrease in birth rates, with the birth rate dropping from **1.0% in 2019 to 0.64% in 2023**, resulting in a reduction of newborns from **14.67 million to 9.02 million** [4][6] - The market size for the infant formula industry decreased from **197.29 billion yuan in 2019 to 176.08 billion yuan in 2023**, with a projected decline to **112.86 billion yuan by 2028**, reflecting a compound annual growth rate (CAGR) of **-2.8%** and **-8.5%** respectively [6] Market Dynamics - The demand for infant formula is expected to drop below **350,000 tons** due to the shrinking population of infants, which will negatively impact market growth [7] - The pricing structure of infant formula is categorized into three segments: - Ordinary formula (below 300 yuan) - High-end formula (300-400 yuan) - Super high-end formula (above 400 yuan) - High-end and super high-end products account for **50.5%** of the overall market despite only holding **35%** of the market share [7] Supply Chain Analysis - The supply chain consists of upstream raw material suppliers, midstream manufacturers, and downstream sales channels, including both online and offline platforms [8] - The number of dairy cows in China is increasing slowly, impacting the supply of milk, which is a primary ingredient in infant formula [9] Competitive Landscape - The competition between foreign and domestic brands is intensifying, with foreign brands like **Mead Johnson and Wyeth** holding over **75%** of the market share, especially in first-tier cities [12] - Domestic brands are increasing their investment in research and quality control to improve their product offerings and adapt to market demands [13] - The new national standards require different stages of formula to have independent standards, affecting the formulation of proteins, fats, and carbohydrates [13] Future Outlook - The market is expected to see a significant shift as nearly one-third of brands may exit the market, solidifying the dominance of leading domestic brands [14] - The concentration of production facilities is skewed towards northern regions, with **119 domestic factories** registered compared to **35 foreign factories** [14] - Leading companies like **Feihe, Junlebao, and Yili** are expanding their production capabilities and product lines to capture market share [15] Conclusion - The infant formula industry in China is facing challenges due to declining birth rates and increasing competition, but there is potential for growth in high-end product segments as consumer preferences shift towards quality and safety [11][16]

Core Viewpoint - The article discusses the successful integration of online and offline sales channels by Feihe, a leading infant formula brand, through a brand joint operation model on Douyin, resulting in significant sales growth and customer acquisition [4][10][51]. Group 1: Online and Offline Integration - Feihe has achieved impressive results in just two months, with single live-stream sales exceeding 3.5 million yuan, ranking first on Douyin's national brand sales list [4][10]. - The brand joint operation model launched by Douyin on April 29 supports retail brands with offline sales but no independent stores, offering incentives such as commission waivers and local advertising support [4][11]. - The strategy involves selling popular products and vouchers in live streams, directing users to nearby supermarkets and chain stores for redemption, thus converting online traffic into offline sales [4][16][19]. Group 2: Customer Engagement and Acquisition - During a two-week live streaming event, Feihe collaborated with over 80 stores in South China, showcasing popular products and large vouchers to attract online users to physical stores [8][9]. - The live streams featured high engagement, with peak online viewers exceeding 8,300, driven by a combination of executive endorsements, cultural aesthetics, and attractive offers [7][8]. - The promotional strategy included offering vouchers like "600 yuan off 700 yuan," making it convenient for consumers to redeem them at local stores, similar to group buying platforms [9][19]. Group 3: Support and Incentives - Douyin's support measures include zero commission and 1:1 local advertising matching for brands that join by June 30, allowing for rapid market entry and cost reduction [26][27]. - The local push advertising tool is designed to target specific geographic areas, enhancing the effectiveness of marketing efforts for brands like Feihe [33][34]. - The financial support from Douyin helps brands lower operational costs while increasing GMV and accumulating more offline consumers [36][30]. Group 4: User Retention and Long-term Value - Feihe's strategy has resulted in a significant influx of new customers, with 90% of viewers being new users and 95% of them visiting stores, indicating effective customer acquisition [38][46]. - The high average first-order value of over 450 yuan reflects the brand's ability to attract quality customers who are likely to return [38][50]. - The partnership with chain stores like Aiying Island and Kidswant not only boosts immediate sales but also fosters long-term customer loyalty, as parents tend to stick with trusted brands for essential products like infant formula [50][51].

Core Viewpoint - The company anticipates a decline in revenue and net profit for the first half of 2025, primarily due to inventory reduction and the impact of a fertility subsidy program [1][2]. Group 1: Financial Performance - The company expects to achieve revenue of 9.1-9.3 billion for H1 2025, representing a year-on-year decline of 7.9%-9.9% [1]. - The projected net profit for H1 2025 is estimated to be between 1.0-1.2 billion, reflecting a year-on-year decrease of 36%-47% [1]. - The company plans to allocate no less than 1.0 billion for share buybacks and expects to distribute dividends of at least 2.0 billion in 2025, down from 2.72 billion in the previous year [1][2]. Group 2: Market Outlook - The company forecasts low single-digit growth for full-year revenue, with H2 2025 revenue expected to increase by 10%-15% [2]. - The anticipated completion of inventory adjustments in Q3 2025 is expected to positively impact revenue [2]. - The company plans to launch higher-end products in H2 2025, which may drive revenue improvement [2]. Group 3: Investment Strategy - The company has announced a share buyback plan and a commitment to dividend distribution, enhancing shareholder returns [2][3]. - The long-term outlook remains positive due to expected recovery in newborn population growth and the implementation of fertility subsidies, suggesting a potential industry improvement cycle of 2-3 years [2]. - The company has adjusted its earnings forecasts for 2025-2027, with a target price set at 5.1 HKD and a recommendation downgrade to "recommended" [3].

机构：中金公司 研究员：陈文博/王文丹/方云朋 预告1H25 盈利同比下降36-47% 启动不少于10 亿元股份回购，全年派息额不低于20 亿元。公司拟启动不低于10 亿元的股份回购用于潜 在员工激励计划，公告25 年派息不低于20亿人民币，相当于25 年我们利润预期的60%以上，彰显公司 对于提升股东回报的决心。考虑公司覆盖全生命周期营养产品的长期布局，未来公司有望在功能营养事 业及儿青事业获取更多增量。同时我们认为去库存利好公司渠道稳健稳定发展，短期虽有影响，但长期 利好公司竞争力进一步夯实。 盈利预测与估值 由于公司去库存调整及大包粉减值，我们下调25/26 年盈利预测26%/16%至28.7/36.6 亿元，当前交易在 13/10 倍25/26 年P/E；下调目标价27%至6 港币，对应18/14 倍25/26 年P/E和31%上行空间，维持跑赢行 业评级。 飞鹤发布盈利预警公告：预计1H25 收入91-93 亿元，同比下降7.9-9.9%，预计1H25 净利润10-12 亿元， 同比下滑36-47%，低于市场预期，主因去库存调整及大包粉减值。 关注要点 去库存及奶粉补贴多重影响致收入低于市场预期，利 ...

Summary of Key Points Core Viewpoint - On July 9, 37 Hong Kong-listed companies conducted share buybacks, totaling 49.01 million shares and an amount of 1.129 billion HKD [1][2]. Group 1: Buyback Details - Tencent Holdings repurchased 1.005 million shares for 500 million HKD, with a highest price of 504.000 HKD and a lowest price of 495.200 HKD, accumulating a total buyback amount of 39.543 billion HKD for the year [1][2]. - WuXi Biologics repurchased 11.5 million shares for 298 million HKD, with a highest price of 26.150 HKD and a lowest price of 25.650 HKD, accumulating a total buyback amount of 1.708 billion HKD for the year [1][2]. - AIA Group repurchased 4 million shares for 274 million HKD, with a highest price of 68.950 HKD and a lowest price of 68.050 HKD, accumulating a total buyback amount of 16.935 billion HKD for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on July 9 was from Tencent Holdings at 500 million HKD, followed by WuXi Biologics at 298 million HKD [1][2]. - The largest number of shares repurchased on July 9 was by WuXi Biologics at 11.5 million shares, followed by Ying Group and China Aluminum Can with 8 million shares and 5 million shares, respectively [1][2]. Group 3: Additional Buyback Information - China Feihe conducted its first buyback of the year, while Tencent Holdings has conducted multiple buybacks totaling 39.543 billion HKD for the year [2]. - A detailed table of buybacks on July 9 includes various companies, their stock codes, number of shares repurchased, buyback amounts, highest and lowest prices, and cumulative buyback amounts for the year [2][3].

Investment Rating - The investment rating for China Feihe (06186.HK) has been downgraded to "Recommended" due to lower-than-expected performance [2][7]. Core Views - The company is expected to achieve revenue of 9.1-9.3 billion with a year-on-year decline of 7.9%-9.9% and a net profit of 1-1.2 billion, reflecting a year-on-year decline of 36%-47% for the first half of 2025 [2][7]. - The company plans to invest no less than 1 billion in share buybacks and expects to distribute dividends of no less than 2 billion in 2025, down from 2.72 billion in the same period last year [2][7]. - The company anticipates low single-digit growth for the full year, with a projected revenue increase of 10%-15% in the second half of 2025 [7]. Financial Summary - Total revenue (million) for 2024 is projected at 20,749, with a slight increase to 20,766 in 2025, and further growth to 22,054 in 2026 [4]. - The net profit (million) is expected to decline from 3,570 in 2024 to 3,025 in 2025, before recovering to 3,602 in 2026 [4]. - Earnings per share (CNY) are forecasted to decrease from 0.39 in 2024 to 0.33 in 2025, with a gradual increase to 0.40 in 2026 [4]. Market Performance - The target price for the stock is set at 5.1 HKD, with the current price at 4.58 HKD [4][7]. - The company maintains a market capitalization of 41.5 billion HKD and a total share capital of 9.067 billion shares [5][7]. Industry Outlook - The company is expected to benefit from a recovery in newborn population growth and the implementation of fertility subsidies, which may improve industry conditions over the next 2-3 years [7]. - The company is positioned as a leading brand in the infant formula market, with a strong channel foundation and plans to launch higher-end products in the second half of 2025 [7].

Group 1 - The infant formula market is experiencing a recovery in the first half of 2025, with several companies reporting positive earnings forecasts, indicating sustained growth [1][2] - Child King (301078.SZ) expects a net profit of 120 million to 160 million yuan, a year-on-year increase of 50% to 100%, driven by steady growth in self-operated business and the expansion of its franchise model in lower-tier markets [2] - Health and Happiness Group (01112.HK) reported single-digit revenue growth, with a strong performance in the ultra-premium infant formula segment, increasing its market share from 13% to 15.8% [2] Group 2 - According to Nielsen IQ data, the total sales of infant formula maintained growth for three out of five months leading up to May 25, 2025, with strong sales in the first and second stages of formula [3] - After four years of decline, the domestic birth rate increased to 9.54 million in 2024, contributing to the recovery of the infant formula market, although there are concerns about a potential slight decline in birth rates in 2025 [6] Group 3 - A subsidy war initiated in April 2025 has intensified competition in the infant formula market, with several companies, including China Feihe (06186.HK) and Yili (600887.SH), launching substantial subsidy programs [7][8] - The subsidy strategy primarily involves offering free formula, leading to consumer behavior where multiple brands' products are exchanged among consumers, complicating sales for companies [7][8] - China Feihe issued a profit warning, expecting revenue between 9.1 billion and 9.3 billion yuan for the first half of 2025, down from 10.1 billion yuan in the same period of 2024, attributing the decline to the subsidy program [8]