YILI(SH:600887) Sou Hu Cai Jing·2025-04-30 10:18Core Insights - The company achieved a total revenue of 1157.80 billion yuan in 2024, maintaining its position as the leading dairy enterprise in Asia, with a net profit of 115.39 billion yuan after excluding goodwill impairment, representing a year-on-year growth of 12.2% [2][3] - In Q1 2025, the company reported a revenue of 330.18 billion yuan, a year-on-year increase of 1.35%, and a net profit of 46.29 billion yuan, reflecting a significant growth of 24.19% [2] - The company aims to maintain a positive trend in operating profit margins, targeting a profit margin of 9% for 2025 [2] Financial Performance - The overall gross profit margin for 2024 was 34.03%, an increase of 131 basis points [3] - The management expense ratio decreased by 23 basis points to 3.86% in 2024, while the sales expense ratio for Q1 2025 was 16.9%, down 152 basis points [3] - Operating cash flow for 2024 reached 217.40 billion yuan, up 18.86% year-on-year, attributed to increased prepayments from distributors due to inventory buildup for the Spring Festival [3] Shareholder Returns - The company plans to distribute dividends of 77.26 billion yuan for 2024, with a payout ratio of 91.4%, marking a historical high [4] - Cumulatively, the company has distributed 508 billion yuan in dividends since its listing in 1996, leading the dairy industry in China [5] - The company commits to maintaining a dividend payout ratio of no less than 70% and aims to increase shareholder returns [5] Business Segments - The milk powder and dairy products segment achieved revenue of 296.75 billion yuan in 2024, a year-on-year growth of 7.53% [10] - The liquid milk segment generated approximately 750 billion yuan in revenue, contributing about 65% to the total revenue [7] - The company’s market share in liquid milk continues to expand, with significant growth in high-end low-temperature milk products [8] Strategic Initiatives - The company is focusing on functional nutrition and deep processing of dairy products, collaborating with traditional Chinese medicine brand Tongrentang to develop new products [13] - A new national dairy technology innovation center is under construction, aimed at addressing structural issues in the cheese industry [13] - The company plans to outline a five-year strategic plan in the second half of the year, emphasizing the reshaping of the dairy industry value chain [15]