Investment Rating - The report maintains a "Buy" rating for China Feihe (6186.HK) with a projected PE of 13, 12, and 12 times for the years 2025, 2026, and 2027 respectively, indicating a favorable outlook compared to the Hang Seng Index [5][7]. Core Insights - In 2024, China Feihe achieved a revenue of 20.749 billion yuan, representing a year-on-year increase of 6.23%, and a net profit attributable to shareholders of 3.570 billion yuan, up 5.31% [1][2]. - The company plans to distribute a final dividend of 0.1632 HKD per share, totaling approximately 2.72 billion yuan, with a payout ratio of about 76.19% [1]. - The infant formula segment showed steady recovery with revenues of 19.062 billion yuan, reflecting a growth of 6.63% year-on-year [2]. Revenue Breakdown - Offline and online revenues for 2024 were 15.997 billion yuan and 4.751 billion yuan, respectively, with year-on-year growth rates of 2.89% and 19.25% [2]. - The company reported revenues from its infant formula business in mainland China, the United States, and Canada of 20.546 billion yuan, 164 million yuan, and 39 million yuan, respectively, with growth rates of 6.52%, -20.61%, and 1.90% [2]. Production Capacity and Margins - By the end of 2024, the company's production capacity increased to over 365,000 tons, marking an annual growth of over 11.62% [2]. - The gross margin improved to 66.34%, up 1.51 percentage points year-on-year, primarily due to a 15% decrease in raw milk prices and product mix upgrades [2][3]. Profitability Metrics - The net profit margin for 2024 was 17.21%, a slight decrease of 0.15 percentage points year-on-year, attributed to reduced government subsidies and increased minority interest losses [3]. - Management expenses decreased, with the management expense ratio at 8.10%, down 0.92 percentage points year-on-year [3]. Market Outlook - The infant formula market is expected to stabilize gradually, supported by newborn support measures, with China Feihe positioned as a leading player due to its strong R&D capabilities and brand recognition [4]. - The high-end infant formula segment is anticipated to drive continued growth, supported by rising disposable income and demand for premium products [4].
中国飞鹤（06186）：2024年年报点评：H2收入增长提速，持续高分红回报股东