Cautious Outlook for China Feihe Limited Amid Declining Sales and Profitability ChallengesChina Feihe Ltd. (6186.HK): Lower guidance; focusing on healthier channel mix; downgrade to 2025 | 7:18PM HKT Feihe reported 1H25 earnings on Aug 28, with sales/NP decreased by 9.4%/47% yoy. The company further guided down full-year sales to Rmb21bn (incl. VAT tax) or c. Rmb19bn (post VAT, decline yoy by DD%) with continued destocking into 3Q and a delay in super premium+ product launches. It targets FY25 net profit to stay at c.Rmb2bn as biological/milk powder impairment loss is likely to impact 2H earnings. While we recognize the company's efforts in product mix enhancement (increasing portion of new super-premium SKU "Zhuorui" in its total revenue mix), more resilient online growth, and steady IMF GPM, we expect further destocking into end-2025 and more marketing dollars going forward to regain market share.