Why is it said that Inner Mongolia Yili Industrial Group's third quarter report exceeded expectations?

Inner Mongolia Yili Industrial Group (600887.SH) is said to have exceeded expectations in the third quarter report, but where exactly did it exceed expectations? Let's break it down today. Core data exceeding expectations across the board Companies like Inner Mongolia Yili Industrial Group, which have been listed for a long time and have been rising for over twenty years as a consumer value blue-chip, always attract market attention. The market's demands for them are extremely high. Even under such scrutiny, it is clear that Yili's third-quarter report greatly exceeds market expectations. The third-quarter report shows that Inner Mongolia Yili Industrial Group's total revenue for the first three quarters was 89.039 billion yuan, with a net profit attributable to shareholders surpassing the "billion" mark at 10.868 billion yuan, exceeding last year's full-year profit and increasing by 15.87% year-on-year. Looking at the third quarter compared to the previous quarter, both revenue and profit have increased significantly, entering an upward trend. Especially in the third quarter, the net profit attributable to shareholders was 3.34 billion yuan, an increase of 8.5% year-on-year. The main source of profit comes from the efficient operation of the core business, rather than other factors. Furthermore, during the first three quarters, Yili's operating cash flow was a net zero of 13.87 billion yuan, an increase of 8.46% year-on-year, demonstrating the quality of operations. In the same period, Yili's earnings per share were 1.71 yuan, an increase of 16.33% year-on-year, indicating a significant increase in dividend potential. Additionally, Yili's profitability has further improved. In the reporting period, Yili's return on equity (TTM) reached 21.19%, an increase of 0.56 percentage points from the same period last year; gross profit margin reached 34.81%, an increase of 1.91 percentage points; gross sales difference reached 15.48%, an increase of 0.29 percentage points; net profit reached 12.24%, an increase of 2.62 percentage points, demonstrating a systematic enhancement in profitability. According to the performance briefing, Yili's enhanced profitability is mainly attributed to a significant improvement in internal operational efficiency and the utilization of leading management measures, such as digitalization. The third-quarter report data shows that the efficiency of various expenses of Inner Mongolia Yili Industrial Group has further improved. Diversified business exceeding expectations across the board From a business perspective, leveraging absolute leading advantages in the industry, Yili has increased its market share in all product categories. The financial report shows that in the first three quarters, Inner Mongolia Yili Industrial Group's liquid milk business achieved revenue of 57.524 billion yuan, with a significant improvement in the third quarter, reaching revenue of 20.637 billion yuan, an increase of 24.12% compared to the previous quarter, a strong performance. Among them, the Golden Classic organic milk continued to lead in growth in the first three quarters, continuously expanding market share. As for powdered milk and dairy products, a category that Yili has been focusing on in recent years, it has achieved significant growth against industry trends, once again demonstrating Inner Mongolia Yili Industrial Group's forward-looking strategic vision. In the same period, this business achieved revenue of 21.33 billion yuan, an increase of 7.07% year-on-year, not only achieving record-high performance, but also steadily increasing revenue growth. In particular, the infant formula milk powder business continued to grow, with both revenue and market share increasing continuously. In terms of cold drink business, revenue reached 8.344 billion yuan in the first three quarters, continuously ranking first in the country for 29 years, with market share continuously expanding. In addition, it is worth noting that during the performance briefing in the third quarter report, Yili stated that both the liquid milk and cold drink businesses have been actively adjusted and have reached optimal channel levels, laying a solid foundation for Yili's healthy growth in the future. Future outlook exceeding expectations across the board In addition to reviewing the outstanding performance in the third quarter, Yili's outlook for the future at the performance briefing in the third quarter report has also exceeded expectations. Traditionally, many people still think of Yili as a domestic dairy company, but in reality, Yili has been the number one dairy company in Asia for ten consecutive years, and now Yili's business spans five continents globally, with a development vision to become "the most trustworthy provider of healthy food globally." Guided by this vision, Yili also provided a clearer development path for internationalization, non-dairy businesses, and deep processing of dairy products at the performance briefing in the third quarter report. Regarding international development, Yili stated that in addition to Indonesia and Thailand, the company has also established new layouts in other countries with growth potential and expanded other dairy product categories beyond ice cream. In terms of global dairy industry rankings, excluding exchange rate effects, Yili is clearly the fastest-growing company among the top five dairy companies globally. Striving towards the development goal of becoming the number one dairy company globally by 2030, Yili's future international development is meticulous and strategic. In terms of non-dairy businesses, Yili's recent layouts in tea drinks and water beverages have shown impressive growth rates. Yili stated that in the future, with the increase in production capacity of water beverages and tea drinks, there will be a gradual increase in channel distribution and promotion. There are also new flavors of tea drinks in reserve to be launched next year. Furthermore, Yili's increased investment in the deep processing of dairy products is also anticipated. Leveraging its innovative technology for directional extraction and protection of lactoferrin, Yili's lactoferrin factory in New Zealand began construction in 2023, and once completed and put into operation, Yili will rank in the top three globally for lactoferrin production capacity. In addition, Yili is accelerating its layouts in other deep-processed dairy product categories to better meet the differentiated product demands of B-end customers. Clearly, Yili's future development plans for breaking the boundaries of internationalization, non-dairy competitions, and higher value-added dairy industry have surpassed the expectations of many.