Investment Rating - The report maintains a "Strong Buy" rating for China Feihe (06186.HK) with a target price of HKD 7.5 [1][6]. Core Views - The company reported a revenue of CNY 20.749 billion for 2024, a year-on-year increase of 6.23%, and a net profit of CNY 3.654 billion, up 11.06% year-on-year. The second half of 2024 saw a revenue of CNY 10.654 billion, reflecting an 8.74% increase year-on-year, with a net profit of CNY 1.743 billion, a 4.25% increase year-on-year [1][6]. - The company announced a dividend of HKD 0.1632 per share, leading to a total dividend payout of CNY 2.72 billion, with a payout ratio of approximately 74% [1][6]. - The report highlights that the company is in a business turnaround cycle, with external demand recovering and continuous product upgrades expected to drive revenue growth in 2025 [6][7]. Financial Performance Summary - For 2024, the total revenue is projected at CNY 20,749 million, with a year-on-year growth rate of 6.2%. The attributable net profit is expected to be CNY 3,570 million, with a growth rate of 5.3% [7]. - The earnings per share (EPS) forecast for 2025-2027 is CNY 0.43, CNY 0.46, and CNY 0.50 respectively, with corresponding price-to-earnings (P/E) ratios of 13, 12, and 11 [6][7]. - The company’s gross margin for the second half of 2024 is reported at 64.88%, with a year-on-year increase of 0.54 percentage points, driven by product structure optimization [6][7]. Market Position and Strategy - The company has increased its market share to 20.5%, up 0.3 percentage points year-on-year, indicating a solid position in the infant formula market despite industry challenges [6][7]. - The report emphasizes the company's five-year development plan, aiming to significantly enhance its market position in the infant formula sector and diversify into functional nutrition and children's products by 2030 [6][7].
中国飞鹤（06186）：2024年报点评：方向明确，节奏待提