Core Viewpoint - Daiwa's research report indicates that Ausnutria (1717.HK) aims for low double-digit revenue growth in its goat milk infant formula (IMF) business this year, while expecting mid-single-digit growth in cow milk IMF and strong double-digit growth in nutritional products. Stricter regulatory policies and declining birth rates are expected to accelerate industry consolidation, potentially allowing Ausnutria to gain more market share [1] Group 1: Business Performance and Projections - Ausnutria plans to launch the fourth phase of children's formula and adult formula in the goat milk segment, with a goal to complete registration by the end of this year, ensuring compliance with new standards and requirements [1] - The company anticipates an improvement in gross margin this year due to favorable foreign exchange trends, lower provisions, and an improved product mix [1] Group 2: Financial Adjustments and Market Position - Daiwa has lowered its earnings per share forecasts for Ausnutria for 2022 and 2023 by 19% and 23% respectively, reflecting lower revenue targets for cow milk IMF [1] - The target price for Ausnutria has been reduced from HKD 14.5 to HKD 12.5, corresponding to a projected price-to-earnings ratio of approximately 14 times for this year [1] - Despite the adjustments, Daiwa remains optimistic about Ausnutria's long-term potential market share growth in China, given its leadership position in the goat milk IMF market and its access to raw materials from overseas [1] - The report highlights the synergistic effects between Ausnutria and Yili in terms of raw material procurement, shared distribution channels, and marketing resources, maintaining a "Buy" rating for the stock [1]
大和：维持澳优(1717.HK)买入评级 目标价12.5港元