YILI(600887)2024-05-07 07:34Financial Performance - The company reported a revenue growth of 11.1% in the infant formula segment, increasing its market share by 1.7 percentage points to 12.8% [9] - The overall revenue for liquid milk is expected to stabilize and increase in the second half of the year, despite a weak demand recovery in the first quarter [4][5] - The company anticipates a slight improvement in gross profit margin due to a decrease in raw milk prices and an improved product mix [10] Market Trends - The demand for dairy products is expected to return to normal growth trajectories as consumer purchasing power recovers [4] - The infant formula market is projected to see a decline in growth, but the decrease is expected to be less severe than in 2023 [8] - The adult nutrition segment is anticipated to maintain double-digit growth, driven by increasing health awareness among consumers [12] Strategic Initiatives - The company plans to enhance its product innovation capabilities and expand into non-dairy sectors such as beverages and probiotics [13][14] - Marketing efforts will focus on leveraging events like the Paris Olympics to boost brand visibility and consumer engagement [10] - The company aims to maintain a stable dividend payout ratio of at least 70% to enhance shareholder returns [20] Challenges and Adjustments - The company is facing short-term challenges due to weak demand and excess raw milk supply, leading to adjustments in inventory management [4][7] - Promotional activities may increase in response to competitive pressures, but the company remains committed to maintaining stable pricing [7][10] - The low-temperature dairy segment is expected to recover gradually, with a focus on expanding distribution channels [18][19]