The Zhitong Finance App learned that Macquarie released a research report saying that it maintained the “outperform the market” rating of Vitamin Milk International (00345) and raised the net profit forecast for the 2023/24 fiscal year by 244.9%/18.6% to reflect the strong performance of mainland China's business recovery and benefiting from price increases. The target price was raised from HK$17.3 to HK$17.8.

According to the report, the company's revenue in the first half of the fiscal year increased 4% year on year, and net profit increased from 33 million yuan last year to 142 million yuan, which is in line with Yingxi earlier. The strong profit performance was driven by a recovery in mainland China, an increase in government subsidies to 59 million yuan, low inventory bad debts, and a decline in goodwill impairment in the Singapore business. The bank believes that the Group's operations in mainland China have become healthier. The lower base in the second half of the fiscal year, rising prices, and continued increases in capacity utilization should continue to drive profit improvements.