YILI(600887)2024-09-03 10:13Group 1: Financial Performance and Market Position - In the first half of 2024, the company adjusted its liquid milk channels, resulting in improved freshness of products, with terminal data indicating a healthy overall performance despite a slowdown in shipment pace [2][3]. - The market share of the company's white milk business increased, with organic white milk growth also leading the market [3]. - As of July 2024, the liquid milk channel adjustments were nearly complete, laying a solid foundation for business recovery in the second half of the year [4]. Group 2: Sales and Pricing Strategy - The average selling price of dairy products decreased in the first half of the year due to imbalances in raw milk supply and demand, but this stimulated consumption in lower-tier cities [6]. - The company anticipates a gradual stabilization and recovery of prices in the second half of the year, supported by improved product freshness and ongoing market adjustments [3][4]. - The company plans to leverage digital marketing strategies to enhance consumer engagement and capitalize on seasonal opportunities such as the Mid-Autumn Festival and National Day [3]. Group 3: Industry Outlook and Consumer Trends - The dairy industry is expected to achieve stable growth driven by increasing health awareness among consumers and advancements in dairy technology [6][7]. - The company is focusing on product innovation and expanding into new consumer segments, particularly in adult nutrition products, which are projected to have significant growth potential [8][9]. - The company is also exploring cross-industry collaborations to create innovative ecosystems and enhance product offerings [9]. Group 4: Investment and Shareholder Returns - The company aims to maintain a stable dividend policy, with expectations of increasing dividend amounts compared to 2023, targeting a dividend payout ratio of no less than 70% in the coming years [16]. - The company is committed to maximizing shareholder value through consistent returns and effective cost management strategies [16]. Group 5: Raw Milk Supply and Demand Dynamics - The raw milk supply is currently in excess, but the growth rate of raw milk production is slowing, indicating a potential narrowing of the supply-demand gap in the near future [14][15]. - The company is actively working to balance raw milk supply and demand, with expectations of achieving basic equilibrium by next year [15].