20230830-招银国际-伊利股份-600887.SH-2Q_rev_np_+1_3__all_eyes_on_cost_savings_5页_1mb

Yili Industrial's 2Q revenue and net profit grew by 1% and 3% respectively, slightly below market expectations, primarily due to slowdown in liquid milk and milk powder revenues. The company maintains unchanged full-year revenue guidance at 10%, but faces challenges in achieving implied second-half growth. Cost efficiency is seen as a key driver for 9% net margins by 2025E, with SG&A ratio decreasing by 0.6ppt in H1. Analysts downgraded 2023-24E revenue and net profit forecasts by 3% and 2% respectively, citing destocking impacts and cost factors. The target price was lowered to RMB36.5 from RMB40.0, indicating a 29.2% downside. The company received a "BUY" rating, supported by legitimate opportunities like Satine growth and retailer demand recovery. Risks include goodwill impairment on Ausnutria and raw material inventory write-offs.

Financials show stable profitability, with ROE improving to 23.4% by 2025E, but debt to equity ratio is low. Other key points include 70% payout ratio and price performance data. Overall, Yili faces moderate growth challenges but remains a buy with focus on cost savings.