Establishment of China International: Raise target price of China Feihe (06186) to HKD 6.5, maintain "outperform" rating.

Industrial and Commercial Bank International released a research report, raising the target price of CHINA FEIHE (06186) from HK$4.5 to HK$6.5, an increase of 44%, while maintaining an "outperform" rating. The bank believes that the group will continue to maintain a dividend growth of at least 10% per share, equivalent to a dividend yield of 5.7% in the 2025 fiscal year, which is enough to support its valuation. The group's net profit for the fiscal year 2024 increased by 5% year-on-year to 3.57 billion RMB, driven by a 7% growth in infant formula milk (IMF) sales, with revenue increasing by 6% in the 2024 fiscal year.