Fangzheng Securities: Yuxin Dairy "recommended" rating, taking multiple measures to promote continuous improvement in profitability.

Fangzheng Securities research report points out that XIN Dairy has adopted various measures to promote the continuous improvement of profitability, and the target net profit margin is expected to be achieved ahead of schedule. In 25 years, revenue reached 11.23 billion yuan, an increase of 5.3% year-on-year, achieving a net profit attributable to shareholders of 730 million yuan, an increase of 36.0% compared to the same period last year. Product innovation supports the "double strength of freshness and acidity" strategy, and the optimization of new product efficiency helps stabilize performance growth. The company continues to focus on the DTC core channel, with the proportion of new channels increasing to lead high-quality growth, and brand investment continues to increase, consolidating brand building through various measures. The company has built a three-dimensional synergistic system of "technology cost reduction + management cost reduction + efficiency improvement", while ensuring product quality, further reducing controllable production costs, and overall increasing labor efficiency, financial efficiency, and production efficiency, laying a solid foundation for supply chain profitability improvement. It is given a "recommended" rating.