Core Insights - Li Ziyuan reported a stable performance in the first half of 2025, with operating revenue of 621 million yuan and a net profit attributable to shareholders of 96.12 million yuan, reflecting a year-on-year growth of 1.05% [1] - The company announced a profit distribution plan, proposing a cash dividend of 2.40 yuan per 10 shares, totaling approximately 91.96 million yuan, which accounts for 95.67% of the half-year net profit, indicating a strong commitment to shareholder returns [1] - As a leading player in the dairy beverage industry, Li Ziyuan holds nearly 50% market share in sweet milk beverages, maintaining its top position in the segment according to Frost & Sullivan research data [1] Business Development - The company is expanding its production capacity nationwide, with stable operations in production bases located in Jinhua, Jiangxi, Qujing, and Hebi, and the second phase of the Jiangxi Li Ziyuan project is set to commence production by the end of 2024 [1] - Li Ziyuan has been recognized as a "Smart Factory" in Zhejiang Province, showcasing significant results from its smart transformation efforts [1] Brand and Innovation - The company has appointed actor Cheng Yi as its brand ambassador and launched a new advertising slogan to enhance brand influence and connect with younger consumers [1] - Li Ziyuan emphasizes research and development, holding 211 effective patents and 474 registered trademarks, and actively participates in the formulation of national standards, demonstrating strong technical capabilities [2] Future Outlook - Looking ahead to the second half of the year, Li Ziyuan plans to continue optimizing its product structure and market channel development to ensure steady growth in its core dairy beverage business while enhancing brand value and market competitiveness [2]

Investment Rating - The report maintains a "Buy" investment rating for the company [1][8] Core Insights - The company's main revenue is stable, with continuous improvement in profitability. Total revenue and net profit for 2024 were CNY 1.415 billion and CNY 224 million, respectively, showing a year-on-year growth of 0.2% and a decline of 6%. In Q4 2024, total revenue and net profit were CNY 351 million and CNY 67 million, reflecting a year-on-year increase of 2% and 39% [5] - The company is experiencing a significant increase in gross margin, with 2024 gross margin at 39.08%, up 3.2 percentage points year-on-year. The net margin slightly decreased due to increased sales and management expenses [5] - The company is expanding its e-commerce channels, with online sales revenue reaching CNY 76 million, a growth of 90%, and accounting for 5.43% of total revenue [7] Summary by Sections Financial Performance - In 2024, the company reported total revenue of CNY 1.415 billion and a net profit of CNY 224 million. The Q1 2025 figures were CNY 320 million in revenue and CNY 66 million in net profit, with a year-on-year growth of 16% in net profit [5][10] - The gross margin for 2024 was 39.08%, and for Q1 2025, it increased to 42.83% [5][10] Revenue Breakdown - The revenue from dairy beverages was CNY 1.354 billion in 2024, with a slight decline of 2%. The company introduced new products to meet health-conscious consumer demands [6] - The company’s revenue from direct sales grew significantly by 111% in 2024, while traditional distribution channels saw a decline [6][7] Profitability Forecast - The company is expected to see EPS of CNY 0.66, 0.75, and 0.85 for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 20, 18, and 15 [8][10]