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.
Financial PerformanceCMD’s ASP declined by 10.5% y/y in 1H24, better than the 11.9% decline in industry price.
Market RisksKey risks include reliance on China Mengniu, outbreak of diseases, food safety issues, raw milk price and raw material cost fluctuations, and ESG concerns.