Gelonghui, April 29 | China Merchants Securities recently released a report recommending China Feihe as a May 2024 gold stock. The bank believes that Feihe is a high-quality asset with “low valuation+high dividend+high cash”. The current valuation and dividend ratio correspond to a dividend rate of about 7%-8%. It has plans to increase dividends steadily every year, with a target market value of 45 billion yuan, corresponding to 30% room for growth. China Merchants Securities said that the market already has catalytic information: 1) Maternal filing data has improved since this year, and the number of births may be reversed; 2) the price market in the milk powder industry has generally rebounded this year, and leading profit margins can stabilize; 3) Feihe's market share continues to rise, and the performance is expected to pick up in 2024. Since April, Feihe has been favored many times by institutions. Many institutions such as UBS, Dahua Jixian, and Anxin International gave it a “buy” rating, and the stock price increased by more than 20% during the month.