Investment Rating - Maintain "Overweight" rating [1][3] Core Views - Feihe achieved revenue of RMB 10.095 billion in H1 2024, up 3.7% YoY, with net profit of RMB 1.911 billion, up 18.1% YoY [1] - Feihe maintained its leading position in China's infant formula market with a 19.2% market share across all channels [1] - The company's ultra-premium product Zhuo Rui saw an 80% revenue growth in H1 2024 [1] - Gross margin improved to 67.9% in H1 2024, up 2.6 percentage points YoY, driven by reduced discounts and improved product mix [1] - Feihe successfully expanded in coastal markets such as Guangdong, Fujian, and Shanghai, with significant growth in Shanghai [1] - The company plans to launch new products, including infant formula, nutritional products, and cheese products in H2 2024 [1] Financial Performance - H1 2024 revenue: RMB 10.095 billion (+3.7% YoY) [1] - H1 2024 net profit: RMB 1.911 billion (+18.1% YoY) [1] - H1 2024 gross margin: 67.9% (+2.6 ppts YoY) [1] - H1 2024 net margin: 18.9% (+2.3 ppts YoY) [1] - 2024E revenue: RMB 20.939 billion (+7.2% YoY) [2] - 2024E net profit: RMB 3.773 billion (+11.3% YoY) [2] Market Position - Feihe holds a 19.2% market share in China's infant formula market across all channels [1] - Offline channel market share: 22.7% [1] - Online channel market share: 13.8% [1] Product Strategy - Focus on premiumization, with Zhuo Rui driving growth in the ultra-premium segment [1] - Plans to launch new products, including infant formula, nutritional products, and cheese products in H2 2024 [1] Valuation - 2024E PE: 9x [1] - 2024E EPS: RMB 0.42 [1] - Current price: HKD 4.19 [3]
中国飞鹤：2024年半年度业绩点评：卓睿表现亮眼，沿海市场拓展顺利