Milkground(SH:600882) EBSCN·2024-07-10 23:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [13]. Core Views - The company is expected to see significant profit improvement in the first half of 2024 due to declining raw material costs and effective cost-reduction measures, with a projected net profit increase of approximately 128% to 215% year-on-year [9]. - The integration of Mengniu Cheese into the company's consolidated financial statements is anticipated to enhance revenue, despite Mengniu Cheese's recent negative net profit [2][10]. - The company is focusing on new product launches and marketing strategies to boost sales, particularly in the adult and children's snack segments [11]. Financial Summary - The forecasted net profits for 2024 to 2026 are 142 million, 177 million, and 215 million yuan respectively, with corresponding EPS of 0.28, 0.34, and 0.42 yuan [3]. - The current stock price is 12.85 yuan, with a PE ratio projected to decrease from 46x in 2024 to 31x in 2026, reflecting a favorable valuation trend [3][14]. - The company reported a significant increase in gross margin due to a decrease in the price of imported cheese and a reduction in expense ratios [1].