YILI(SH:600887) Xin Lang Cai Jing·2025-08-30 00:52Core Viewpoint - The company showed improved quarterly performance in Q2 2025, with a year-on-year revenue growth of 5.77% and a significant increase in net profit due to lower raw milk prices and a favorable comparison base from the previous year [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved total revenue of 61.933 billion yuan, a year-on-year increase of 3.37%, while net profit attributable to shareholders was 7.200 billion yuan, a decline of 4.39% [1]. - The company's Q2 revenue reached 28.915 billion yuan, with a year-on-year growth of 5.77% [1]. - Q2 net profit attributable to shareholders increased by 44.65% to 2.326 billion yuan [1]. Group 2: Product Performance - For the first half of 2025, the company reported revenues from liquid milk, milk powder and dairy products, and cold drinks of 36.126 billion yuan, 16.578 billion yuan, and 8.229 billion yuan, respectively, with year-on-year changes of -2.06%, +14.26%, and +12.39% [1]. - In Q2 2025, liquid milk revenue decreased by 0.84% to 16.486 billion yuan, but the decline was less severe compared to the previous quarter [1]. - The milk powder and dairy products segment grew by 9.66% to 7.765 billion yuan, driven by favorable demographic factors [1]. Group 3: Profitability Metrics - The company achieved a gross margin of 34.19% in Q2 2025, an increase of 0.61 percentage points year-on-year [2]. - The sales expense ratio and management expense ratio for Q2 were 19.87% and 3.77%, showing a year-on-year change of -0.69 percentage points and +0.51 percentage points, respectively [2]. - The net profit margin increased by 2.00 percentage points to 7.94% in Q2 2025 [2]. Group 4: Future Outlook - The company maintains a "buy" rating, with expected earnings per share of 1.75 yuan and 1.87 yuan for 2025 and 2026, respectively, corresponding to PE ratios of 16 times and 15 times [2]. - The company is positioned as a leader in the dairy industry, with resilient operations and anticipated marginal improvements in dairy demand due to favorable birth policies [2].