Earnings ReductionEarnings for FY24/FY25F are cut by 27%/35% given weaker-than-expected raw milk prices so far.
Key RisksKey risks include reliance on China Mengniu, outbreak of diseases, food safety issues, raw milk price and raw material cost fluctuations, and ESG concerns.
Selling Price DeclineCMD’s average selling price declined by 10.5% y/y in 1H24, better than the 11.9% decline in industry price.