YILI(SH:600887) Sou Hu Cai Jing·2025-09-04 12:00Core Viewpoint - In the first half of the year, Yili Co., Ltd. has returned to a growth trajectory in revenue, primarily driven by the performance of milk powder, dairy products, and frozen products, despite a continued decline in liquid milk revenue [1][3]. Financial Performance - Yili achieved operating revenue of 61.78 billion yuan, a year-on-year increase of 3.49%, with Q1 and Q2 revenues of 33.02 billion yuan and 28.91 billion yuan, respectively [3][4]. - The net profit attributable to shareholders was 7.2 billion yuan, down 4.39% year-on-year, with Q1 and Q2 profits of 4.87 billion yuan and 2.33 billion yuan, showing a quarterly improvement [3][4]. - The net profit excluding non-recurring gains and losses saw a significant increase of 31.78%, reaching 7.02 billion yuan [4][12]. - Operating cash flow decreased significantly, with a net inflow of 2.96 billion yuan, down 44.34% year-on-year, primarily due to a decline in advance payments from distributors [12][13]. Product Performance - Liquid milk revenue continued to decline, accounting for nearly 65% of total revenue in 2024, with a decrease of 12.32% year-on-year last year and a 2.06% decline in the first half of this year [6][7]. - In contrast, revenue from milk powder and dairy products increased by 14.26% to 16.58 billion yuan, while frozen products grew by 12.39% to 8.23 billion yuan, maintaining the top market share [7][8]. - The market share for infant formula reached 18.1%, up 1.3 percentage points year-on-year, while adult milk powder market share increased to 26.1%, up 1.8 percentage points [8][9]. Debt and Financing - The company has a short-term interest-bearing debt of approximately 55.2 billion yuan and has conducted 11 financing rounds this year to meet short-term cash flow needs [1][12]. - Yili has frequently engaged in short-term financing, issuing a total of 60 billion yuan in short-term financing notes in February and additional issuances throughout the year [17][19]. - The company’s total cash and short-term investments amount to approximately 36.74 billion yuan, but the debt pressure remains significant with short-term borrowings and liabilities totaling 55.2 billion yuan [14][21]. Market Position - As of September 4, Yili's stock price was 28.16 yuan per share, with a total market capitalization of 178.1 billion yuan and a TTM price-to-earnings ratio of 21.93, indicating a relatively high valuation [22].