MENGNIU DAIRY(02319) 市值风云·2024-09-06 12:16Investment Rating - The report indicates a positive outlook for the company, highlighting its resilience in a challenging market environment [20]. Core Insights - Despite facing significant challenges in the dairy industry, including oversupply of raw milk and declining consumer demand, the company has managed to improve its core profitability metrics [20]. - The company announced a substantial share buyback plan of up to HKD 2 billion, reflecting its commitment to enhancing shareholder value [19]. Summary by Sections Core Profitability Indicators - In the first half of 2024, the company reported revenue of HKD 446.7 billion, a decrease of 12.6% year-on-year, and a net profit of HKD 2.45 billion, down 19.0% year-on-year [3][4]. - The gross profit reached HKD 179.9 billion, with a gross margin of 40.3%, an increase of 1.9 percentage points year-on-year [4]. Maintaining Business Fundamentals and Focusing on Premiumization - The company has maintained a stable core business, with liquid milk accounting for 81% of total revenue, generating HKD 362.6 billion [6]. - The introduction of premium products, such as the "Desert Organic Milk," has contributed to brand value enhancement and market share growth in the high-end dairy segment [7]. Enhancing Operational Efficiency and Increasing Shareholder Returns - The company has successfully reduced operational costs, with inventory turnover days decreasing to 40.3 days, reflecting improved inventory management [15]. - The cash dividend for 2023 was HKD 2.15 billion, with a dividend payout ratio of 39.9%, up from 29.5% the previous year, indicating a focus on returning value to shareholders [19].