Average Selling PriceCMD's average selling price declined by 10.5% y/y in 1H24, which is still a significant drop despite being better than the industry average.
EarningsRevised down FY24F earnings to RMB11mn and cut FY25F by 52% on a weaker-than-expected raw milk price and the fair value losses on dairy cows.
RisksKey risks include reliance on China Mengniu, outbreak of diseases, food safety issues, raw milk price and raw material cost fluctuations, and ESG concerns.