Huaxi Securities expects the adjusted net profit of Ausu (01717) to increase 30% year over year.
The Zhitong Finance App learned that Huaxi Securities released a research report saying that maintaining the Australian Excellent (01717) “gain” rating, the bank is still optimistic about the future profit elasticity of leading companies during the downturn in the industry. The market share of the income baby formula business is expected to maintain its lead after consolidation and adjustment, and the nutritional products business is currently growing rapidly in advance as an additional growth point; under a multi-pronged approach such as profit-side mergers and acquisitions, integration, and cooperation agreements, the bank is still optimistic about the future profit elasticity of leading companies during the industry's low point.
The bank believes that in '24, the infant formula business ended with the influence of the new national standard, and continued breakthroughs in overseas business are expected to resume growth; the merger of the C-side Eisen and NC segments of the nutritional products business has further integrated internal resources, expanded the sales network, released new B-side production capacity, and continuously expanded the number of customers. The bank is expected to achieve high double-digit growth. Overall revenue for the full year is expected to achieve the low double-digit growth expected by the company.
According to the bank's judgment, in order to increase the brand power and popularity of its own brand of infant formula, the company will increase slightly in marketing and advertising in 24, and sales expenses will increase slightly, but management expenses are expected to continue to decline slightly for 23 years. At the same time, with the implementation and implementation of the company's upstream supply chain, good production and marketing plans will reduce future depreciation of Dabao Fen, and the bank expects the amount of impairment to drop drastically next year.
Mr. Yan, the founder of the company, responded that since Yili strategically took a stake in Ausu, it has collaborated deeply with Yili in scientific research collaboration, product expansion, brand promotion, etc., and signed a financial service and procurement framework to enhance the company's overall competitiveness. The bank comprehensively considers the increase in revenue side, improvement on the gross profit side, and strict control of expenses. The adjusted net profit of the company is expected to increase 30% year-on-year.