The Zhitong Finance App learned that Lyon released a research report stating that it maintains the “buy” rating of Mengniu Dairy (02319) and believes that its valuation is not high. The net profit forecast for this year and next two years was lowered by 14% to 15%, and the target price was lowered from HK$28 to HK$24.

According to the report, the company's stock price fell after disclosing last year's results. This market is mainly due to the company's net profit for the second half of last year and last year falling short of expectations, as well as the company's weak outlook for this year. The bank believes that Mengniu still has to face the challenge of weak demand, and changes in the competitive landscape may be one of the key factors worth paying attention to in the company's gross profit expansion journey.