Investment Rating - The report maintains a "Buy" rating for China Feihe (6186.HK) with a current price of HKD 5.87 [1] Core Views - The company achieved a revenue of CNY 20.75 billion in 2024, representing a year-on-year increase of 6.2%, and a net profit of CNY 3.57 billion, up 5.3% year-on-year. In the second half of 2024, revenue reached CNY 10.65 billion, with a year-on-year growth of 8.7%, while net profit was CNY 1.7 billion, showing a slight increase of 0.1% year-on-year [4] - The company is implementing a full-age nutrition strategy, expanding its product offerings beyond infant formula to include products for children, adults, and functional nutrition [8] Summary by Sections Financial Performance - In 2024, the company reported a gross margin of 66.3% and a net profit margin of 17.2%. The second half of 2024 saw a gross margin of 64.9% and a net profit margin of 15.9%, with a notable decline in net profit margin attributed to increased sales expenses and reduced government subsidies [6] - Revenue from infant formula products was CNY 19.06 billion in 2024, reflecting a 6.6% year-on-year increase. Other dairy products generated CNY 1.514 billion, up 6.3% year-on-year, while health products saw a decline of 25.4% to CNY 173 million [5] Strategic Initiatives - The company has launched a CNY 1.2 billion childbirth subsidy plan to attract new customers, which is expected to enhance revenue growth. Additionally, it has strengthened its presence in the Canadian market and is exploring opportunities in Southeast Asia and the Middle East [7] - The company is transitioning to a full-age nutrition model, with plans to develop products for children and adults, including a recent launch of a protein product aimed at reducing muscle loss in adults [8] Profit Forecast and Valuation - The profit forecast for 2025 has been adjusted to CNY 3.812 billion, a 4% decrease, while the 2026 forecast remains at CNY 4.141 billion. The report introduces a 2027 profit forecast of CNY 4.405 billion. The current stock price corresponds to a P/E ratio of 13x for 2025, 12x for 2026, and 11x for 2027 [8][10]
中国飞鹤（06186）2024年年度业绩点评：政府补助减少拖累24H2利润，开始实施全龄营养战略