YILI(SH:600887) Xin Lang Cai Jing·2025-09-02 06:06Core Viewpoint - The company reported better-than-expected performance for H1 2025, with total revenue and profit exceeding market expectations [1] Group 1: Financial Performance - For H1 2025, total revenue reached 61.93 billion (up 3.4% YoY), with net profit attributable to shareholders at 7.2 billion (down 4.4% YoY) and net profit excluding non-recurring items at 7.02 billion (up 32% YoY) [1] - In Q2 2025, total revenue was 28.92 billion (up 5.8% YoY), with net profit attributable to shareholders at 2.33 billion (up 45% YoY) and net profit excluding non-recurring items at 2.39 billion (up 49% YoY) [1] Group 2: Product Performance - In Q2 2025, revenue from liquid milk, milk powder and dairy products, cold drinks, and other products changed by -0.85%, +9.7%, +38%, and -3.1% YoY respectively [1] - The liquid milk business saw a narrowing decline in revenue due to no inventory pressure and a low base in Q2 2025, with positive growth expected in low-temperature fresh milk [1] - The cold drink business experienced high revenue growth due to a low base from last year's inventory reduction and favorable weather conditions [1] Group 3: Cost and Profitability - In Q2 2025, the gross margin increased by 0.6% YoY, attributed to the decline in milk prices and a higher proportion of high-margin milk powder business [2] - The company improved its cost control, with sales, management, R&D, and financial expense ratios changing by -0.7%, +0.5%, -0.1%, and -0.5 percentage points YoY respectively [3] - The net profit margin for Q2 2025 was 8.1%, an increase of 2.2 percentage points YoY, exceeding expectations due to reduced impairment losses [3] Group 4: Future Outlook - The company is expected to see further improvement in operations as the raw milk cycle turns upward, with projected total revenues of 119.78 billion, 124.62 billion, and 129.66 billion for 2025-2027, reflecting a YoY growth of 4% each year [3]