YILI(600887) 平安证券·2024-04-30 08:00Investment Rating - The report maintains a "Recommended" investment rating for Yili Co., Ltd. [2][7] Core Views - Yili maintains a strong market position with improved profitability, achieving a gross margin of 32.58% in 2023, up 0.32 percentage points year-on-year. The net profit margin also improved to 8.18%, an increase of 0.59 percentage points year-on-year [4][7] - The company reported a revenue of 1257.58 billion yuan in 2023, a year-on-year increase of 2.49%, and a net profit of 104.29 billion yuan, up 10.58% year-on-year. For Q1 2024, revenue was 324.63 billion yuan, a decrease of 2.60% year-on-year, while net profit surged by 63.84% to 59.23 billion yuan [3][4] - Yili's product matrix continues to expand, with liquid milk, infant nutrition, adult nutrition, ice cream, yogurt, and cheese as its six major product categories. The liquid milk segment generated revenue of 855.40 billion yuan in 2023, a growth of 0.72% year-on-year [4][7] Financial Performance - In 2023, Yili's operating income was 1257.58 billion yuan, with a net profit of 104.29 billion yuan. The company expects operating income to reach 130.16 billion yuan in 2024, with a projected net profit of 13.73 billion yuan [5][8] - The gross margin is expected to improve to 33.0% in 2024, while the net profit margin is projected to reach 10.5% [5][8] - The report forecasts earnings per share (EPS) of 2.16 yuan for 2024, with a price-to-earnings (P/E) ratio of 13.1 times based on the closing price on April 29 [5][8]