YILI(SH:600887) Ge Long Hui A P P·2026-01-21 07:41Core Viewpoint - The dairy industry has entered a new phase of "quality upgrade" driven by diversified and refined demand, with Yili aiming to become a "comprehensive nutrition solution provider" [1] Industry Summary - The dairy processing sector in China is experiencing new growth opportunities, with leading dairy companies accelerating their strategic layouts [1] - Yili has taken the initiative to establish a National Dairy Technology Innovation Center to address technical challenges in dairy processing [1] Company Summary - Yili's future growth is expected to be driven by two core engines: deep processing of dairy products and adult nutrition products over the next 5-10 years [1] - Significant progress has been made in the extraction of lactoferrin, which is anticipated to solidify Yili's competitive advantage in research and development and strengthen its barriers in deep processing [1] - Given Yili's leading position in dairy processing technology, a valuation premium is applied, with a target price of 35.2 yuan per share based on a 20x PE for 2026, maintaining a "buy" rating [1]