Lyon: Upgraded China Feihe (06186) rating to "highly confident outperforming the market" and expected more policy incentives to stimulate the birth rate this year.

Lyon released a research report stating that CHINA FEIHE (06186) is expected to accelerate its sales growth this year, and it is estimated that its subsidy of 1.2 billion yuan will not significantly impact profits. The company will also reduce the impact by improving cost distribution and increasing efficiency. The bank believes that there will be more policy incentives to stimulate fertility rates this year, which may boost market sentiment. Considering potential policy incentives, stable performance, and generous dividend payouts (forecasting a dividend yield of 6% this year), the investment rating has been upgraded from "outperform market" to "highly confident in outperforming market".