Gelonghui, May 17 | Changjiang Securities Research Report pointed out that in the context of declining costs, Yili Co., Ltd. (600887) maintained restraint in spending in 24Q1, and the gross sales margin increased 0.6 pct year on year, continuing the trend of improvement in 2023. In addition, the investment income obtained by the company's disposal of mining subsidiaries also significantly increased net profit in Q1. Against the backdrop of the continued decline in milk prices, reflecting the twists and turns of the recovery in demand for dairy products, the industry is still in a weak recovery stage in 2024. The company set a relatively steady growth target in 2024 (total revenue of 130 billion yuan, total profit of 14.7 billion yuan). As capital expenditure entered a healthy steady state channel, the 2023 dividend rate increased to 73.25%, a step further than the previous dividend rate. The company also disclosed a new repurchase plan (amount of 1 to 2 billion yuan, accounting for about 0.38-0.75% of total share capital) to enhance market confidence and improve shareholder returns. Maintain a “buy” rating.