Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Insights - The company achieved a revenue of 3.887 billion CNY in H1 2025, representing a year-on-year increase of 5.6%, and a net profit of 181 million CNY, up 24.1% year-on-year [1]. - The overseas goat milk powder segment showed significant growth, with a 65.7% increase in revenue to 483 million CNY, accounting for 25.9% of total goat milk powder revenue [2]. - The company is focusing on optimizing sales expenses and improving net profit margins, with a net profit margin of 4.6% in H1 2025, up 0.7 percentage points year-on-year [3]. - The company anticipates continued strong growth in overseas goat milk powder sales and is developing its nutrition products as a second growth avenue [4]. Summary by Sections Financial Performance - In H1 2025, the company reported revenues of 3.887 billion CNY and a net profit of 181 million CNY, with respective year-on-year growth rates of 5.6% and 24.1% [1]. - The gross profit margin for H1 2025 was 41.9%, a decrease of 1.5 percentage points, primarily due to the lower margin from the newly acquired cheese business [3]. Product Performance - Revenue from cow milk powder, domestic goat milk powder, and nutrition products in H1 2025 was 961 million CNY, 1.381 billion CNY, and 156 million CNY, with year-on-year changes of -14.9%, -8.9%, and +7.0% respectively [2]. - The newly added cheese business generated 479 million CNY in revenue [2]. Market Outlook - The company expects domestic goat milk powder revenue to improve in H2 2025 as inventory adjustments are completed, and policies stimulate demand [4]. - The overseas goat milk powder business remains a key growth driver, with significant sales increases in core regions such as the Middle East and North America [2][4]. Profitability and Valuation - The company forecasts net profits of 299 million CNY, 357 million CNY, and 410 million CNY for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 13x, 11x, and 10x [4].

Core Viewpoint - Aoyou Dairy Co., Ltd. reported a resilient growth in revenue and profit for the first half of 2025, with significant contributions from its international business and nutrition products [1][5][6]. Financial Performance - For the first half of 2025, Aoyou achieved revenue of approximately 3.887 billion RMB, a year-on-year increase of 5.6% [1] - EBITDA reached about 398 million RMB, reflecting a growth of 29.7% [1] - Net profit attributable to equity holders was approximately 181 million RMB, up by 24.1% [1] International Market Growth - Aoyou's overseas milk powder sales surged by 65.7%, reaching approximately 483 million RMB [6] - The Middle East remains the largest overseas market, with a revenue increase of 54.2% [6] - North America saw a remarkable revenue growth of over 138.7%, becoming the second-largest source of overseas revenue [7] Nutrition Products Development - The nutrition products segment achieved a revenue growth of 7.0%, expanding into international markets [8] - The company launched several new functional products that gained significant consumer attention [8] Brand and Market Position - Aoyou's own brand milk powder business generated approximately 2.826 billion RMB, with a 3.1% increase in sheep milk powder sales [9] - The market share of Aoyou's sheep milk powder rose by 2.8 percentage points to 30.4% [9] - Aoyou's cow milk powder market share stabilized, with significant growth in e-commerce sales [10] Operational Efficiency - The company improved its sales and distribution expense ratio by 3.8% through enhanced digital marketing strategies [11] - Inventory turnover days decreased by 20 days, indicating improved supply chain efficiency [11] Research and Innovation - Aoyou hosted an international seminar on goat milk, enhancing its authority in the field [12] - The company launched four new sheep milk raw materials, with three achieving global commercial viability [13] Future Outlook - Aoyou remains confident in its market position and plans to strengthen its second growth curve while focusing on research and innovation [14]