Everbright Securities recently released a review report on China's Feihe (06186) 2023 performance forecast, announcing that it will maintain Feihe's “gain” rating.

Everbright Securities believes that Feihe is still in the leading position in the industry. It ranked first in the infant formula market in mainland China for five consecutive years from 2019 to 2023, and ranked first in sales in the global infant formula market for three consecutive years.

The research report points out that with the further elimination of competitors and the increase in industry concentration, China's Feihe business environment is expected to see marginal improvements. It is worth noting that 2024 is the traditional Chinese year of the Dragon, and there will usually be a small peak in fertility. As a leader in the industry, Chinese flying cranes are expected to be the first to benefit.