Yili'S Third Quarter Report In 2024 Exceeded Expectations, And The Stock Price Rose Sharply To Start The Differentiation Of Dairy Sector

On October 30, 2024, Dairy Yili (600887. SH) officially released its financial report for the third quarter of 2024. The report shows that Yili's profitability in the third quarter significantly exceeded market expectations, and this strong performance immediately received positive feedback in the capital market. On October 31, Yili's share price soared by 5.6%, far exceeding the 0.42% rise of the Shanghai Stock Exchange Index on that day, which shows that investors highly recognize Yili's future growth potential.

As of November 1, 2024, Yili's annual growth rate has reached 10.4%, becoming an outstanding brand in the dairy sector. At the same time, the stock price performance of other large dairy enterprises showed a greater differentiation. Among them, New Dairy (002946. SZ) rose by 10.1% in the year, moving forward side by side with Yili, which shows that the market recognizes the position and growth potential of these two companies in the industry. However, Bright Dairy (600597. SH) and Sanyuan Shares (600429. SH) fell 0.82% and 2.5% respectively, indicating that the market is worried about the current operating conditions of these two companies or uncertain about their future growth prospects. It is worth mentioning that the share price of Mengniu Dairy (02319. HK) fell by 12.3% during the year, becoming the bottom of the dairy sector, which may be related to the market challenges and performance of Mengniu in the past year.

When measuring the true operating performance of an enterprise, "net profit attributable to the parent company after deducting non recurring profits and losses" (referred to as "net profit attributable to the parent company after deducting non recurring profits and losses") is a very important indicator. In the third quarter of 2024, Yili's non attributable net profit reached 3.19 billion yuan, up 19.9% year on year and 99.9% compared with the second quarter of 2024. This data not only reflects the remarkable improvement of Yili's operating conditions in the third quarter, but also shows the company's ability to cope with market challenges and seize development opportunities.

From the perspective of historical performance, Yili's net profit in the third quarter after deducting non attributable net profit will not be systematically higher than that in the second quarter. Therefore, the significant growth of this indicator in the third quarter of 2024 is undoubtedly a strong proof of Yili's business strategy adjustment and business optimization in the past. This also shows that Yili has shown strong resilience and adaptability in responding to market fluctuations and industry adjustments.

Looking back over the past two years, 2023 and 2024 can be regarded as the year of adjustment of China's dairy industry. Especially in 2024, the adjustment of the industry will be particularly fierce. Yili Shares and Mengniu Dairy, the two major dairy brands, have encountered considerable challenges in their medium-term performance. In the first half of 2024, Yili's operating revenue will be 59.7 billion yuan, down 9.5% year on year; The net profit not attributable to the parent company was 5.32 billion yuan, down 12.8% year on year. Although these data have brought some concerns to the market in the short term, Yili's strong rebound momentum in the third quarter undoubtedly brought new hope and confidence to investors.