According to the report published by Lyon, Vitasoy International Holdings Limited (00345.HK) is expected to see a considerable increase in gross profit in the second half of fiscal year 2024, reflecting its prudent spending and easing concerns about the bank's potential uncontrollable increase in operating expenditure costs. Looking ahead, the bank believes that the company has more confidence in expanding its gross profit as raw material prices fall and operating efficiency improves.

However, the bank is cautious about Vitasoy's sales expansion in mainland China. According to channel surveys, even in the low base of January to June this year, Vitasoy's sales in mainland China still lagged behind its main competitors. The bank lowered its target price from 9.8 yuan to 6.9 yuan and maintained a "underperform" rating.