Core Viewpoint - The company reported a decline in revenue and profit for the first half of 2025, attributed to intensified competition and proactive inventory reduction measures [1] Financial Performance - The company achieved a main revenue of 9.151 billion yuan in H1 2025, a year-on-year decrease of 9.36% [1] - The net profit attributable to shareholders was 1 billion yuan, down 46.66% year-on-year [1] - The gross profit margin was 61.58%, a decrease of 6.3 percentage points year-on-year [1] - The net profit margin was 10.93%, down 7.64 percentage points year-on-year [1] Revenue Breakdown - Revenue from ultra-high-end, high-end, ordinary, and adult milk powder was 6.19 billion, 1.69 billion, 330 million, and 290 million yuan respectively, with year-on-year changes of -13%, -14%, +3%, and -4% [1] - Online sales performed better than offline, with offline revenue at 6.58 billion yuan (down 15%) and online revenue at 2.57 billion yuan (up 10%) [1] Cost and Expenses - Selling expense ratio was 34.69%, a slight decrease of 0.33 percentage points year-on-year [1] - Management expense ratio increased to 8.46%, up 1.14 percentage points year-on-year due to reduced economies of scale and increased employee compensation [1] - Other income and gains decreased, primarily due to reduced government subsidies and interest income [1] Market Position and Strategy - The company faced significant operational pressure due to intensified market competition and slow approval of new ultra-high-end products [1] - The market share declined by over 1 percentage point to 18.2% in June 2025 [1] - The company is actively adjusting its operations, with inventory levels reaching healthy targets and plans to launch three customized products in the second half of the year [1] Future Outlook - The company aims to improve its operational performance through product launches and inventory adjustments, with expectations for revenue growth [1] - The target price for 2026 is set at 5.1 HKD, with a recommendation to monitor the performance of new products [2]
中国飞鹤(06186.HK)2025年中报点评：经营务实调整 股息率成支撑