BofA Securities: Upgraded CHINA FEIHE (06186) to Buy rating, target price raised to 6.5 Hong Kong dollars.

On January 7, Eastern Time, Bank of America Securities released a report on the outlook for the Chinese market in 2025, adjusting its outlook for CHINA FEIHE (06186). The target price for CHINA FEIHE stock was raised from 4.5 Hong Kong dollars to 6.5 Hong Kong dollars, and the rating was upgraded from "Neutral" to "Buy". Bank of America Securities has raised the estimated earnings per share (EPS) for Feihe for 2024-2026 by 4-6%, citing factors such as improved product sales channel penetration, positive product profit certainty, continued improvement in shareholder return commitments, and potential new supportive policies in China providing additional upside potential for long-term growth. Feihe had previously announced its mid-term performance for 2024, with revenue of 10.095 billion Chinese yuan and a net profit of 1.912 billion. It also declared a mid-term dividend of 1.353 billion, with a cash dividend ratio of approximately 70%, up from approximately 60% in the same period last year, reflecting confidence in the company's long-term growth. CHINA FEIHE focuses on innovation as its driving force, advancing its "brain development strategy" by continuously optimizing its product portfolio to cover the entire lifecycle from infancy to old age. This helps strengthen the Chinese dairy industry, explore new growth opportunities, and build core competitiveness.