Milkground(SH:600882) EBSCN·2025-08-22 07:30Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company achieved a revenue of 2.57 billion yuan in H1 2025, representing a year-on-year increase of 8%, with a net profit attributable to shareholders of 130 million yuan, up 86.3% year-on-year [4] - The cheese business is the core growth driver, with significant performance in both B-end and C-end markets, leading to improved profitability [5][7] - The company is focusing on optimizing its cost structure and enhancing operational efficiency, which has positively impacted its profit margins [6] Revenue Performance - In H1 2025, the revenue breakdown by product shows cheese, liquid milk, and trading business revenues of 2.136 billion, 187 million, and 230 million yuan respectively, with year-on-year growth rates of 14.85%, 0.63%, and 3.69% [5] - The revenue from the ready-to-eat nutrition series reached 1.083 billion yuan, with a slight increase of 0.62% year-on-year, while the family dining series and catering industrial series saw significant growth of 28.44% and 36.26% respectively [5] Profitability Improvement - The gross profit margin for H1 2025 was 30.81%, reflecting a year-on-year increase of 0.91 percentage points, primarily due to a decrease in raw material costs [6] - The net profit margin for H1 2025 reached 5.18%, up 2.18 percentage points year-on-year, indicating enhanced profitability [6] Market Position and Strategy - The company holds a market share of over 38% in the cheese segment, maintaining its leading position [7] - The strategic focus on "focusing on cheese" and "dual-wheel drive" (B-end and C-end) is expected to support future growth [7] Financial Forecasts - The company’s projected net profits for 2025, 2026, and 2027 are 216 million, 324 million, and 457 million yuan respectively, with corresponding EPS of 0.42, 0.63, and 0.89 yuan [8][9] - The report anticipates a significant improvement in profitability metrics, with the P/E ratio expected to decrease from 66x in 2025 to 31x in 2027 [8][9]