Core Viewpoint - New Dairy Industry's stock price has shown fluctuations with a year-to-date increase of 26.12%, while recent trading indicates a slight decline over the past five days [1] Financial Performance - For the first half of 2025, New Dairy achieved a revenue of 5.526 billion yuan, representing a year-on-year growth of 3.01%, and a net profit attributable to shareholders of 397 million yuan, reflecting a significant increase of 33.76% [2] Stock Market Activity - As of September 17, New Dairy's stock price was 17.94 yuan per share, with a market capitalization of 15.441 billion yuan. The stock experienced a trading volume of 50.6096 million yuan and a turnover rate of 0.34% [1] - The stock has been on the龙虎榜 once this year, with the last appearance on April 10, where it recorded a net purchase of 67.0816 million yuan [1] Shareholder Information - As of September 10, the number of shareholders for New Dairy was 16,800, a decrease of 3.70% from the previous period, with an average of 50,691 circulating shares per shareholder, an increase of 3.84% [2] - The top ten circulating shareholders include various funds, with notable changes in holdings among them [3]

Summary of the Conference Call for New Dairy Industry Company Overview - **Company**: New Dairy Industry - **Industry**: Liquid Milk Industry in China Key Points and Arguments Financial Performance - New Dairy Industry's net profit for the first half of 2025 increased by 27.5% year-on-year, with a net profit margin improvement of 1.6 percentage points [2][3] - In Q1 2025, the company achieved a slight revenue growth, with profits up by 48.5% year-on-year [3] - Q2 2025 saw a revenue increase of 5% year-on-year, with net profit growth of 27.5% and a net profit margin increase of 1.6 percentage points [3] Market Trends - The Chinese liquid milk market is expected to reach a scale of 240 billion yuan by 2024, with a five-year compound growth rate of 1.5% [2][6] - Low-temperature milk has significant growth potential due to its alignment with health and functional consumption trends, despite current low penetration rates [6][8] - The average penetration rate for low-temperature milk in China was 39% in 2023, compared to over 90% in developed countries [6] Industry Dynamics - The low-temperature milk sector is characterized by regional fragmentation, with major players like Bright Dairy in East China and New Hope Dairy in Southwest China [9] - New Dairy Industry is expanding its market share through strategic acquisitions and resource integration [9][10] Competitive Advantages - New Dairy Industry has strong product capabilities, supply chain management, and brand influence [10] - The company implements a "Fresh Cube" strategy, focusing on high freshness and rapid product iteration [10] - The D to C (Direct to Consumer) channel has increased to 20% of sales, with plans to reach 30% in five years, enhancing profit margins and market responsiveness [12][13] Supply Chain Optimization - The company has a well-distributed network of quality dairy farms, allowing flexibility in responding to market fluctuations [12] - New Life Cold Chain, a subsidiary, supports the company by ensuring 90% of fresh milk products reach consumers on the same day [12] Future Growth Strategy - New Dairy Industry aims to maintain stable growth in the second half of 2025, with low-temperature products expected to outperform ambient products [14] - The company plans to focus on high-end low-temperature milk and functional yogurt, projecting revenues of over 11 billion yuan and profits of 720 million yuan for 2025 [14] - The company anticipates a compound annual growth rate of approximately 20% in profits over the next three years [14] Investment Outlook - The company is viewed positively for its future development, with projected P/E ratios of 21 and 18 for 2025 and 2026, respectively, indicating potential for growth compared to industry averages [15] Additional Important Insights - The cold chain infrastructure in China has significantly improved, with refrigerated truck numbers increasing from 180,000 to 380,000 and cold storage capacity rising from 131 million tons to 220 million tons between 2018 and 2022 [7] - The company is actively engaging in consumer education and promoting student milk programs to cultivate consumption habits [7][9]

Market Overview - The beverage and dairy sector experienced a decline of 1.06% on September 15, with Huanlejia leading the drop [1] - The Shanghai Composite Index closed at 3860.5, down 0.26%, while the Shenzhen Component Index closed at 13005.77, up 0.63% [1] Stock Performance - Key stocks in the beverage and dairy sector showed varied performance, with the following notable movements: - Huangshi Group (002329) rose by 1.55% to close at 3.93, with a trading volume of 298,800 shares and a turnover of 116 million yuan [1] - Huanlejia (300997) fell by 4.83% to close at 19.51, with a trading volume of 151,700 shares and a turnover of 300 million yuan [2] - Yili Group (600887) saw a slight decrease of 0.07%, closing at 28.23, with a trading volume of 591,300 shares and a turnover of 1.673 billion yuan [1] Capital Flow - The beverage and dairy sector experienced a net outflow of 405 million yuan from institutional investors, while retail investors saw a net inflow of 375 million yuan [2] - The following stocks had significant capital flow: - Huangshi Group had a net inflow of 15.88 million yuan from institutional investors, but a net outflow from retail investors [3] - Xibu Muye (300106) had a net inflow of 11.18 million yuan from institutional investors, with a net outflow from retail investors [3]

Core Viewpoint - New Hope Dairy's stock price has shown volatility, with a year-to-date increase of 23.23% but a recent decline of 7.35% over the past five trading days [1] Financial Performance - For the period from January to June 2025, New Hope Dairy achieved a revenue of 5.526 billion yuan, representing a year-on-year growth of 3.01% [2] - The net profit attributable to shareholders for the same period was 397 million yuan, reflecting a significant year-on-year increase of 33.76% [2] Shareholder Information - As of September 10, 2025, the number of shareholders for New Hope Dairy was 16,800, a decrease of 3.70% from the previous period [2] - The average number of circulating shares per shareholder increased by 3.84% to 50,691 shares [2] Dividend Distribution - Since its A-share listing, New Hope Dairy has distributed a total of 676 million yuan in dividends, with 448 million yuan distributed over the past three years [3] Institutional Holdings - As of June 30, 2025, the third-largest circulating shareholder was China Europe Value Select Mixed Fund A, holding 5.9028 million shares, a decrease of 1.5897 million shares from the previous period [3] - Hong Kong Central Clearing Limited entered as a new shareholder, holding 4.4983 million shares [3] - Hua'an Anxin Consumer Mixed Fund A increased its holdings by 477,600 shares, ranking as the fifth-largest circulating shareholder [3]

Core Insights - The total revenue of 19 dairy companies in A-shares reached 96.559 billion yuan in the first half of 2025, with a year-on-year growth of 2.06%, while the net profit attributable to shareholders was 8.326 billion yuan, down 3.11% year-on-year [1][8]. Revenue Performance - Leading companies by revenue include Yili Group with 61.933 billion yuan, Bright Dairy with 12.472 billion yuan, and New Dairy with 5.526 billion yuan [4][8]. - Knight Dairy and Jiahe Food reported revenue growth exceeding 10% [1][4]. Profitability Analysis - Yili Group achieved a net profit of 7.2 billion yuan, significantly higher than other companies, while four companies, including Western Pastoral, reported losses [6][8]. - The average gross margin for the 19 dairy companies was approximately 25.34%, with a median of 26.17%, both showing a slight decline year-on-year [1][8]. Gross Margin Insights - The highest gross margin was recorded by Beingmate at 45.27%, followed by Sunshine Dairy, Yili Group, and Junyao Health, all exceeding 32% [1][8]. - Companies like Knight Dairy, Jiahe Food, and Western Pastoral had gross margins below 15% [8][12].

Group 1 - The food and beverage sector experienced a pullback on September 12, with the Food ETF (515710) declining by 1.23% by the end of the trading day [1] - Key stocks in the sector, such as liquor and dairy products, saw significant declines, with Guizhou Moutai dropping 5.28% and Shede Liquor down 3.09% [1] - The overall market sentiment is influenced by recent consumption stimulus policies introduced in various regions, which are expected to boost domestic consumption during the Mid-Autumn Festival and National Day [3][5] Group 2 - Analysts from Dongxing Securities are optimistic about the recovery of the consumer sector in the second half of the year, particularly in the restaurant industry, driven by tourism and sports economies [3] - The Food ETF manager noted that the current low valuation of the food and beverage sector presents a good investment opportunity, with a price-to-earnings ratio of 21.52, which is at the 11.76% percentile of the past decade [4] - The white liquor sector is expected to see a recovery as multiple policies are anticipated to improve demand, especially during the upcoming holidays [5][6] Group 3 - The white liquor sector faced significant challenges in the second quarter due to policy impacts, but there are signs of recovery as consumer scenarios improve [6] - The Food ETF (515710) is strategically positioned with approximately 60% of its holdings in leading high-end and mid-range liquor stocks, and nearly 40% in other beverage and dairy segments [6]

Group 1 - New Dairy Industry's stock price fell by 2.24% to 17.91 CNY per share, with a total market capitalization of 15.415 billion CNY, and has experienced a cumulative decline of 5.34% over the past four days [1] - The company, New Hope Dairy Co., Ltd., was established on July 5, 2006, and went public on January 25, 2019, focusing on the research, production, and sales of dairy products and dairy-containing beverages [1] - The main revenue composition of New Dairy Industry includes liquid milk at 91.70%, other products at 7.47%, and milk powder at 0.83% [1] Group 2 - Huabao Fund has a significant holding in New Dairy Industry, with its Huabao Consumption Upgrade Mixed Fund (007308) holding 74,500 shares, representing 3.1% of the fund's net value, making it the ninth largest holding [2] - The fund has experienced a floating loss of approximately 30,500 CNY today and a total floating loss of 75,200 CNY during the four-day decline [2] - The Huabao Consumption Upgrade Mixed Fund was established on June 19, 2019, with a current scale of 45.1802 million CNY and has achieved a year-to-date return of 12.58% [2]

Core Viewpoint - The company has integrated a comprehensive 4Q quality management system into its business processes to enhance quality awareness and management across the entire industry chain, setting a benchmark for quality management in the food industry [1][2]. Group 1: Quality Planning (QP) - The company emphasizes "advancement, comprehensiveness, appropriateness, and effectiveness" as guiding principles for its quality planning, ensuring the effective operation and continuous improvement of the 4Q quality management system [1]. - Quality activity plans are developed, and management personnel undergo training on laws and regulations, fostering a quality culture within the company [1]. Group 2: Quality Control (QC) - The company has established a "Pasture Quality Safety Management System" based on the ISO 9000 framework, covering all aspects of pasture management, including planting, dairy cow feeding, milk production, and storage [1]. - IoT technology is utilized to create a product information traceability system from suppliers to distributors, linking material usage orders and batches throughout the process to form a complete traceability chain [1]. Group 3: Quality Assurance (QA) - The company adopts the highest international standards, integrating consumer demands into a triadic excellence quality standard from product design, ensuring consistent delivery of high-quality products [2]. - A "full-process visual monitoring system" is established for real-time monitoring of key control points in production, ensuring precise inspection results through laboratory quality control [2]. Group 4: Quality Support (QS) - The company leverages a robust talent pool from Mengniu Group to support excellent quality management, providing development pathways for quality technical professionals [2]. - Quality technical personnel can advance through professional rank assessments, fostering a positive cycle of talent development and capability enhancement [2].

Core Viewpoint - New Hope Dairy's stock price has shown fluctuations, with a year-to-date increase of 26.19% but a recent decline of 1.27% over the last five trading days [1] Financial Performance - For the first half of 2025, New Hope Dairy achieved a revenue of 55.26 billion, representing a year-on-year growth of 3.01%, while the net profit attributable to shareholders was 3.97 billion, up 33.76% year-on-year [2] Stock Market Activity - As of September 12, New Hope Dairy's stock was trading at 17.95 per share, with a total market capitalization of 154.49 billion [1] - The stock has seen a net outflow of 225.89 million in principal funds, with significant selling activity [1] - The company has appeared on the trading leaderboard once this year, with a net buy of 67.08 million on April 10 [1] Shareholder Information - As of August 29, the number of shareholders increased to 17,400, with an average of 48,818 circulating shares per person [2] - The company has distributed a total of 6.76 billion in dividends since its A-share listing, with 4.48 billion in the last three years [3] Institutional Holdings - As of June 30, 2025, major shareholders include China Europe Value Select Mixed A, which reduced its holdings by 1.59 million shares, and Hong Kong Central Clearing Limited, which is a new shareholder with 4.50 million shares [3]

Market Overview - The beverage and dairy sector experienced a slight decline of 0.04% on September 10, with New Dairy leading the drop [1] - The Shanghai Composite Index closed at 3812.22, up 0.13%, while the Shenzhen Component Index closed at 12557.68, up 0.38% [1] Stock Performance - Notable gainers in the beverage and dairy sector included: - Happy Family (300997) with a closing price of 21.92, up 8.19% and a trading volume of 322,500 shares, totaling 661 million yuan [1] - Yiming Food (605179) closed at 23.02, up 3.69% with a trading volume of 153,400 shares, totaling 350 million yuan [1] - Western Pastoral (300106) closed at 11.95, up 3.02% with a trading volume of 157,700 shares, totaling 186 million yuan [1] - Conversely, New Dairy (002946) saw a decline of 1.85%, closing at 18.55 with a trading volume of 53,600 shares, totaling 99.44 million yuan [2] Capital Flow - The beverage and dairy sector experienced a net outflow of 1.5413 million yuan from institutional investors, while retail investors saw a net outflow of 6.40847 million yuan [2] - Conversely, speculative funds recorded a net inflow of 65.626 million yuan [2] Individual Stock Capital Flow - Western Pastoral (300106) had a net inflow of 29.1616 million yuan from institutional investors, while retail investors experienced a net outflow of 19.8580 million yuan [3] - Yiming Food (605179) saw a net inflow of 28.1769 million yuan from institutional investors, with retail investors facing a net outflow of 15.6304 million yuan [3] - New Dairy (002946) had a net outflow of 9.3036 million yuan from speculative funds [3]