YILI(SH:600887) Zhong Guo Jing Ying Bao·2025-04-30 16:09Core Viewpoint - Yili Group reported a robust financial performance for 2024, with total revenue reaching 115.78 billion yuan and a net profit of 11.54 billion yuan, marking a 12.2% increase, while the first quarter of 2025 showed continued growth in revenue and net profit [2][4] Financial Performance - In 2024, Yili achieved total revenue of 1157.80 billion yuan, with a net profit of 115.39 billion yuan after excluding goodwill impairment, reflecting a growth of 12.2% [2] - For Q1 2025, the company reported total revenue of 330.18 billion yuan, a year-on-year increase of 1.35%, and a net profit of 46.29 billion yuan, up 24.19% [2] - The gross profit margin improved by 131% to 34.03% in 2024, with operating cash flow net amount increasing by 18.86% to 21.74 billion yuan [2] Business Segmentation - Yili's business matrix is structured into three tiers: liquid milk and cold drinks, milk powder and cheese, and health drinks and overseas markets [3] - The liquid milk segment generated revenue of 750.03 billion yuan, maintaining the highest market share in ambient white milk, although it faced a 19.61% decline in revenue year-on-year [3] - The milk powder and dairy products segment saw revenue of 296.75 billion yuan, a growth of 7.53%, driven by strong performance in high-end products [3] - The overseas business, while showing growth in cold drinks and infant formula, still represents less than 10% of total revenue [3] Strategic Focus - For 2025, Yili plans to achieve total revenue of 1190 billion yuan and a profit of 12.6 billion yuan, representing increases of 2.8% and 24.4% respectively compared to 2024 [4] - The strategic focus for 2025 will be on functional nutrition and deep processing of dairy products [4] Challenges Ahead - The company faces challenges such as declining newborn numbers affecting infant formula demand and the need to cater to the aging population's nutritional needs [5] - Cost pressures from excess raw milk supply and competition from brands like Feihe and Junlebao may dilute Yili's market share [5] - Geopolitical and tariff risks could hinder the progress of Yili's globalization efforts [5]