[ET Net News Agency, 24 December 2020] CMB International Securities (CMBIS) initiated
coverage on China Feihe (06186) with a "buy" rating and a target price of HK$24.
The research house said Feihe is the top IMF (Infant Milk Formula) market player in
China with an 18% market share in September. CMBIS thinks its effective marketing
strategies, flattened and in-depth distribution system and product freshness are key
reasons for it to keep gaining market share.
It believes Feihe will diversify its product offerings and introduce more superpremium
products to capture the premiumization trend. It forecast Feihe to post 32% adjusted EPS
CAGR from FY2019 to FY2022 led by 38% CAGR of high-end IMF sales, higher than peers'
average of 15%. (KL)