Core Viewpoint - The company, Miaokelando, announced that it does not currently meet the conditions for cash dividends due to negative retained earnings in both consolidated and parent company financial statements as of September 30, 2025, but will actively consider cash dividends once conditions are met [2] Financial Performance - In Q3, Miaokelando achieved a revenue of 1.39 billion yuan, representing a year-on-year increase of 14.22%, and a net profit attributable to shareholders of 43 million yuan, up 214.67% year-on-year [3][5] - For the first three quarters, the company reported a total revenue of 3.96 billion yuan, a 10.09% increase year-on-year, and a net profit of 176 million yuan, which is a 106.88% increase year-on-year [3][5] Profitability and Margins - The increase in net profit is attributed to the optimization of product structure and a rise in revenue from high-margin cheese products, along with increased government subsidies and investment income [5] - The gross margin for the first three quarters was 29.88%, an increase of 0.95 percentage points year-on-year, driven by domestic procurement of raw materials and product structure upgrades [5] Strategic Initiatives - The company has implemented a stock option incentive plan and an employee stock ownership plan, focusing on revenue growth and profit release as key performance indicators [2] - Miaokelando's future strategies include a dual-driven approach targeting both B2B and B2C markets, as well as pursuing mergers and acquisitions to enhance its market position [6] Shareholder Structure - As of the latest report, Mengniu Dairy holds a 36.77% stake in Miaokelando, making it the largest shareholder, while the founder, Chai Xiu, holds 14.92% [6] Industry Outlook - Chai Xiu expressed confidence in the rapid growth of the cheese industry in China, predicting that the market will reach a scale of hundreds of billions [7]

Core Insights - Miaokelando's Q3 2025 financial report shows significant growth, with revenue reaching 1.39 billion yuan, a year-on-year increase of 14.22%, and net profit soaring by 214.67% to 43 million yuan [1][3] - The company's transformation strategy is yielding results, focusing on expanding its cheese product offerings to various consumer demographics, including adults and families [3][4] Financial Performance - Q3 revenue of 1.39 billion yuan, up 14.22% year-on-year, with cheese business revenue at 1.166 billion yuan, increasing by 22.44% [1] - For the first three quarters, total revenue reached 3.957 billion yuan, a 10.09% increase, and net profit was 176 million yuan, up 106.88% [1] Strategic Initiatives - The company is implementing a "dual-wheel drive" strategy targeting both consumer (C-end) and business (B-end) markets, with innovative products launched for adult and family consumption [3][4] - New products like "Ginseng Yogurt" and "Cheese Nut Crisp" have received positive feedback, indicating strong market acceptance [3] B-end Expansion - Miaokelando is intensifying efforts to expand its B-end business, particularly in the tea and restaurant sectors, gaining recognition from major clients like Yum China [4] - The demand for dairy products, particularly "two oils and one cheese" (cream, butter, and cheese), is expected to grow, positioning B-end business as a new growth driver [4] Future Outlook - The company is preparing for significant growth over the next five years, with initiatives aimed at enhancing operational efficiency and product quality [5] - The founder expresses confidence in the Chinese cheese market reaching a scale of 100 billion yuan in the medium term, driven by market size and evolving consumer trends [5][6]

Investment Rating - The report upgrades the investment rating of the company to "Buy" [1][10]. Core Insights - The company achieved a revenue of 3.957 billion yuan for the first three quarters of 2025, representing a year-on-year increase of 10.09%, and a net profit attributable to shareholders of 176 million yuan, up 106.88% year-on-year [5][10]. - The company continues to focus on its "cheese" strategy and the "BC dual-wheel drive" strategy, with significant growth in both B-end and C-end businesses [8][10]. - The company has established a strong position in the cheese market, benefiting from industry consolidation as smaller brands exit the market [9][10]. Revenue Performance - For Q3 2025, the company reported revenue of 1.39 billion yuan, a year-on-year increase of 14.22%, and a net profit of 43 million yuan, up 214.67% year-on-year [5][6]. - The revenue breakdown for Q3 2025 shows cheese, liquid milk, and trading business revenues of 1.166 billion, 130 million, and 87 million yuan, respectively, with year-on-year growth rates of 22.4%, 36.8%, and a decline of 38.0% [6]. Profitability Metrics - The gross margin for the first three quarters of 2025 was 29.88%, an increase of 0.95 percentage points year-on-year, driven by an improved product mix [7]. - The net profit margin for Q3 2025 reached 3.09%, up 2.6 percentage points year-on-year [7]. Strategic Developments - The company has successfully developed B-end clients and expanded C-end product categories, including innovative cheese snacks targeting the adult market [8]. - The company has entered the supply chain of international restaurant chains and collaborated with beverage brands, enhancing its service capabilities [8]. Financial Forecasts - The report raises the forecast for the company's net profit attributable to shareholders for 2025 to 235 million yuan, an increase of 9% [10]. - The projected earnings per share (EPS) for 2025 is 0.46 yuan, with corresponding price-to-earnings (PE) ratios of 55x for 2025, 40x for 2026, and 28x for 2027 [10].

Market Overview - The beverage and dairy sector increased by 0.4% compared to the previous trading day, with Junyao Health leading the gains [1] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [1] Stock Performance - Junyao Health (605388) closed at 7.37, up 3.37% with a trading volume of 120,100 shares and a turnover of 87.84 million yuan [1] - Weiweijia (600300) closed at 3.58, up 3.17% with a trading volume of 1,225,600 shares and a turnover of 436 million yuan [1] - New Dairy (002946) closed at 17.42, up 2.41% with a trading volume of 88,900 shares and a turnover of 15.3 million yuan [1] - Other notable stocks include Panda Dairy (300898) up 1.77% and Miaokelan Duo (600882) up 1.95% [1] Capital Flow - The beverage and dairy sector saw a net inflow of 70.53 million yuan from institutional investors, while retail investors contributed a net inflow of 150 million yuan [2] - However, there was a net outflow of 221 million yuan from speculative funds [2] Individual Stock Capital Flow - Chengde Lulu (000848) had a net inflow of 49.92 million yuan from institutional investors, but a net outflow of 64.64 million yuan from speculative funds [3] - Dongpeng Beverage (605499) experienced a net inflow of 33.18 million yuan from institutional investors, with a slight outflow from speculative funds [3] - Weiweijia (600300) had a net inflow of 19.50 million yuan from institutional investors, while retail investors saw a net outflow of 20.42 million yuan [3]

Investment Rating - The report upgrades the investment rating of the company to "Buy" [1][10] Core Views - The company has shown continuous improvement in revenue and profit, with a notable increase in net profit for the first three quarters of 2025 [5][10] - The B-end business has performed well, contributing significantly to profit growth, while the C-end is expanding through innovative products and new channels [8][10] - The company is focusing on a dual strategy of "focusing on cheese" and "BC dual-wheel drive," which has led to substantial breakthroughs in customer development [8][9] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved operating revenue of 39.57 billion, a year-on-year increase of 10.09%, and a net profit attributable to shareholders of 1.76 billion, up 106.88% [5] - In Q3 2025, the operating revenue reached 13.90 billion, growing by 14.22% year-on-year, with net profit increasing by 214.67% [5][6] Product and Regional Performance - In Q3 2025, revenue from cheese, liquid milk, and trading businesses was 11.66 billion, 1.30 billion, and 0.87 billion respectively, with year-on-year growth rates of 22.4%, 36.8%, and a decline of 38.0% [6] - Revenue by region in Q3 2025 showed North, Central, and South regions generating 4.83 billion, 6.00 billion, and 3.00 billion respectively, with year-on-year growth of 9.2%, 26.0%, and 11.4% [6] Profitability and Cost Structure - The company's gross margin for the first three quarters of 2025 was 29.88%, an increase of 0.95 percentage points year-on-year, driven by an improved product mix [7] - The net profit margin for Q3 2025 reached 3.09%, up 2.6 percentage points year-on-year [7] Strategic Initiatives - The company has successfully developed B-end clients and expanded C-end product categories, launching innovative products targeting the adult market [8] - The company aims for cumulative revenue of nearly 20 billion and cumulative net profit of nearly 1 billion from 2025 to 2027, reflecting management's confidence in long-term growth [9] Earnings Forecast and Valuation - The net profit forecast for 2025 has been raised to 2.35 billion, a 9% increase, with EPS estimates for 2025-2027 at 0.46, 0.64, and 0.90 respectively [10][11]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The food and beverage sector has seen a decline in fund allocation, with the configuration ratio dropping to a new low of 6.4% in Q3 2025 from 8.0% in Q2 2025, indicating a significant reduction in investment interest [5][14] - The white wine sector is expected to reach a performance and valuation bottom, with recommendations to strategically invest in this area due to its relatively low valuation and stable chip structure [8][40] - The beverage and snack sectors are performing well, driven by their essential consumption characteristics and resilience against external market fluctuations [41][43] Summary by Sections Fund Allocation Trends - In Q3 2025, the allocation ratio for food and beverage in all market funds decreased to 6.4%, down 1.6 percentage points from Q2 2025, marking the lowest level since 2020 [5][14] - The allocation ratio for active equity funds in food and beverage fell to 4.1% in Q3 2025, down from 5.6% in Q2 2025, reflecting a continued significant reduction in investment [5][14] White Wine Sector Insights - The proportion of active equity funds heavily invested in white wine decreased from 4.0% in Q2 2025 to 3.2% in Q3 2025, indicating a trend of reduced allocation across both active and passive funds [6][25] - Companies with cleared financial reports, such as Luzhou Laojiao and Shede Liquor, are gaining market favor, while others like Wuliangye and Moutai are seeing reduced holdings [6][25] Performance and Market Dynamics - The food and beverage sector's market value increased by 3.7% in Q3 2025, but it underperformed the CSI 300 index by approximately 18.6 percentage points, ranking fifth from the bottom in the overall market [15][21] - The overall market transaction amount for the food and beverage sector fell to 1.65%, down 1.05 percentage points from the previous quarter, indicating a decline in trading activity [15][21] Investment Recommendations - It is suggested to strategically invest in the white wine sector, focusing on stable companies like Kweichow Moutai and Shanxi Fenjiu, as well as those undergoing market reforms like Shede Liquor [8][40] - For the broader consumer goods sector, attention should be given to companies that benefit from new channels and product categories, such as Wei Long and Ximai Foods [43]

Core Insights - The company reported a strong performance for Q1-Q3 2025, with revenue of 3.957 billion yuan, a year-on-year increase of 10.09%, and a net profit attributable to shareholders of 176 million yuan, up 106.88% [1] - In Q3 2025, the company achieved revenue of 1.390 billion yuan, reflecting a year-on-year growth of 14.22%, and a net profit of 43 million yuan, which is a significant increase of 214.67% [1] Financial Performance - For Q1-Q3 2025, the company's net profit after deducting non-recurring items was 120 million yuan, a year-on-year increase of 92.44% [1] - In Q3 2025, the gross margin and net margin were 28.18% and 3.09%, respectively, representing increases of 5.73 percentage points and 2.60 percentage points year-on-year [1] - The company’s revenue breakdown for Q3 2025 shows cheese, trade, and liquid milk generating 1.166 billion, 130 million, and 87 million yuan, with year-on-year growth rates of 22%, 37%, and a decline of 38% respectively [1] Strategic Initiatives - The company is focusing on a "B+C dual drive" strategy, emphasizing "store efficiency doubling" to enhance sales transformation and performance growth [2] - The company aims to leverage its strengths in both B2B and B2C segments, particularly in the ready-to-eat nutritional cheese market, to drive growth [2] - The strategic focus on "store efficiency doubling" is seen as a top priority for the next three years, expected to enhance sales performance and market influence [2] Future Outlook - The company is projected to achieve net profits attributable to shareholders of 235 million, 338 million, and 432 million yuan for 2025-2027, with year-on-year growth rates of 107%, 44%, and 28% respectively [2] - Earnings per share (EPS) are expected to be 0.46, 0.66, and 0.85 yuan per share for the same period, with corresponding price-to-earnings (PE) ratios of 54X, 38X, and 30X [2]

Core Viewpoint - The stock price of Miaokelan Duo has increased by 43.13% year-to-date, with a recent trading volume indicating active market participation and a mixed flow of funds [2][1]. Company Overview - Miaokelan Duo, established on November 29, 1988, and listed on December 6, 1995, is located in Shanghai and specializes in the research, production, and sales of dairy products, primarily cheese [2]. - The company's main revenue sources are cheese (83.20%), trade (8.94%), liquid milk (7.29%), and others (0.57%) [2]. Financial Performance - For the period from January to September 2025, Miaokelan Duo reported a revenue of 3.957 billion yuan, representing a year-on-year growth of 10.09%, and a net profit attributable to shareholders of 176 million yuan, which is a significant increase of 106.88% year-on-year [2]. - The company has distributed a total of 368 million yuan in dividends since its A-share listing, with no dividends paid in the last three years [3]. Shareholder Information - As of September 30, 2025, the number of shareholders increased by 13.85% to 39,100, with an average of 13,045 circulating shares per person, which decreased by 12.51% [2]. - Hong Kong Central Clearing Limited is noted as a new major shareholder, holding 6.1521 million shares [3].

Summary of Miao Ke Lan Duo Conference Call Company Overview - **Company**: Miao Ke Lan Duo - **Industry**: Dairy Products, specifically Cheese Key Financial Performance - **Revenue**: In the first half of 2025, Miao Ke Lan Duo achieved revenue of 2.567 billion yuan, a year-on-year increase of 7.98% [3] - **Net Profit**: The net profit attributable to shareholders was 1.133 billion yuan, up 86.27% year-on-year [3] - **Cheese Segment Revenue**: Revenue from the cheese segment was 2.136 billion yuan, reflecting a 14.85% increase, with a gross margin of 35.25%, down 1.5 percentage points [3] - **Trade Business Revenue**: Revenue from trade business was 230 million yuan, a 3.69% increase, with a gross margin of 4.73%, up 3 percentage points [3] - **Liquid Milk Revenue**: Revenue from liquid milk was 187 million yuan, a 0.63% increase, with a gross margin of 8.7%, up 1.63 percentage points [3] Growth Drivers - **Cheese Business**: The cheese business is identified as the growth engine, with the catering industrial series revenue growing by 36.2% and the family dining series by 28.44% [2][5] - **Market Demand**: Strong market demand is evident, with the cheese market in China experiencing a significant annual compound growth rate of 24% [2][7] Market Position - **Market Share**: Miao Ke Lan Duo's market share increased to 27%, surpassing Bai Ji Fu to become the leading brand in the Chinese market [2][9] - **Competition**: The market is still dominated by foreign brands, but domestic brands like Mengniu and Duomeixian hold a combined 40% market share, indicating potential for further growth [9] Strategic Initiatives - **Channel Optimization**: The company is optimizing its distribution channels by integrating Mengniu's dual-brand advantages and expanding into emerging channels such as baking and maternal-infant markets [2][6] - **E-commerce Focus**: Miao Ke Lan Duo is deepening its presence on traditional e-commerce platforms like JD, Tmall, and Pinduoduo, while also developing new platforms like Douyin and Kuaishou [2][6] - **B2B Transformation**: The company is transitioning its B2B catering channels towards professional dairy service providers, enhancing its service capabilities for large clients [6] Product Innovation - **New Product Development**: The introduction of room-temperature cheese sticks addresses the challenges of low-temperature transportation and expands consumption scenarios for children [10][11] - **Product Line**: The company has a diverse product line, including ready-to-eat nutrition series, family dining series, and catering industrial series [11] Collaboration with Mengniu - **Strategic Partnership**: Miao Ke Lan Duo has a long-term cooperative relationship with Mengniu, providing cheese OEM services and benefiting from Mengniu's global procurement advantages [12] - **Synergies**: The collaboration enhances procurement, R&D, production, and sales, leveraging Mengniu's resources to improve efficiency and expand market reach [12] Market Trends - **Consumer Behavior**: There is a noticeable shift in consumer preferences from liquid milk to healthier yogurt and cheese products, indicating growth potential for the cheese market [2][7] - **Comparative Analysis**: Compared to Japan and South Korea, China's cheese market is still in its infancy, with significant room for growth as consumer habits evolve [8] Future Outlook - **Growth Strategy**: Miao Ke Lan Duo aims to extend its product offerings into the snack market, transitioning from dairy products to leisure snacks [14] - **Trade Business Expansion**: The company plans to introduce high-quality raw milk products into the domestic market, creating synergies with its core business [14] - **Long-term Prospects**: The overall outlook for Miao Ke Lan Duo is positive, with expectations for continued growth and market leadership in the cheese sector [14]

Core Viewpoint - Miaokelan Duo reported a significant increase in both revenue and net profit for the first three quarters of 2025, indicating strong financial performance and growth potential in the market [1] Financial Performance - The company achieved an operating revenue of approximately 3.96 billion yuan, representing a year-on-year increase of 10.1% [1] - The net profit attributable to shareholders reached approximately 176 million yuan, showing a substantial year-on-year increase of 106.9% [1]