Guoyuan Securities·2025-08-29 13:43Investment Rating - The report maintains a "Buy" rating for the company [4][7]. Core Views - In H1 2025, the company reported total revenue of 41.567 billion yuan, a decrease of 6.95% year-on-year, and a net profit attributable to shareholders of 2.046 billion yuan, down 16.37% [1]. - The decline in liquid milk revenue was primarily due to inventory destocking in the ambient milk segment, while fresh milk and yogurt sales showed double-digit growth [2]. - The company's gross margin improved by 1.4 percentage points to 41.7% due to falling raw milk prices, although net profit margin decreased by 0.55 percentage points to 4.92% due to reduced other income and increased losses from joint ventures [3]. Financial Performance Summary - H1 2025 revenue breakdown: liquid milk 32.192 billion yuan (-11.22%), ice cream 3.879 billion yuan (+15.04%), milk powder 1.676 billion yuan (+2.47%), cheese 2.374 billion yuan (+12.28%), and other businesses 1.447 billion yuan (+12.39%) [2]. - Operating profit for H1 2025 was 3.538 billion yuan, an increase of 13.4% year-on-year, with an operating profit margin of 8.5%, up 1.5 percentage points [3]. - The company expects net profits attributable to shareholders for 2025, 2026, and 2027 to be 4.279 billion yuan, 5.143 billion yuan, and 5.599 billion yuan, respectively, with significant year-on-year growth rates [4].