Jinwu Financial News | Zheshang Securities said that China Feihe (06186) achieved revenue of 19.53 billion yuan (-8.3%) and net profit of 3.39 billion yuan (-31.4%) in 23; 23H2 achieved revenue of 9.80 billion yuan (-15.8%) and net profit of 1.69 billion yuan (-36.9%) to mother. By product in 23 years, infant formula, and other dairy products/nutritional supplements achieved revenue of 178.8/1.42 billion yuan, respectively, or -10.3%/+23.4%/+2.8% compared with the same period last year, accounting for 91.5%/7.3%/1.2%, respectively.
According to the bank, in '23, Feihe led key R&D projects for next-generation infant formula in the 14th Five-Year Plan, comprehensively improving the level of industrial application and leading the Chinese dairy industry to improve quality and efficiency. After the implementation of the new national standard for milk powder in '23, the concentration of domestic milk powder is expected to increase further.
The profit forecast was revised down considering that the 23-year results fell short of expectations. The company's 2024-2026 revenue is expected to be 205.5, 217.3, and 22.62 billion yuan, respectively; net profit to mother is 37.4, 38.9, and 4.04 billion yuan, respectively; considering that 2024 revenue performance is expected to double increase, the purchase rating is maintained.