MENGNIU DAIRY(HK:02319) Ge Long Hui·2025-09-03 05:56Core Viewpoint - The report from Zhongyin International indicates that Mengniu's net profit for the first half of the year decreased by 16.4% year-on-year, and revenue fell by 6.9%, which was below expectations. However, the core operating margin expanded by 1.5 percentage points year-on-year [1] Group 1: Financial Performance - Mengniu's net profit declined by 16.4% year-on-year [1] - Revenue decreased by 6.9% year-on-year, which was below market expectations [1] - Core operating margin expanded by 1.5 percentage points year-on-year [1] Group 2: Future Guidance - Management has lowered the guidance for the fiscal year 2025, predicting a mid to high single-digit decline in revenue year-on-year, with core operating margin expected to remain flat [1] - The total revenue forecast for Mengniu from 2025 to 2027 has been reduced by 7% due to slower-than-expected recovery in liquid milk demand [1] Group 3: Rating and Target Price Adjustment - The rating for Mengniu has been downgraded from "Buy" to "Hold" [1] - The target price has been reduced from HKD 23.3 to HKD 16.8 [1]