According to a research report published by Lyon, more than 85% of China's Feihe's revenue comes from the mainland's infant formula (IMF) business, and it is also expected that the mainland's birth rate this year and next two years will end its decline, increasing 15% and 9% respectively. The bank said the group has strong brand assets and marketing capabilities. However, its huge scale also puts pressure on channel management, especially the ultra-high-end Astrobaby. Furthermore, given its current massive absolute size, well-penetrated channels, and stiff competition, the company's specific growth momentum may be limited. The bank lowered the Group's net profit forecast for the 2022-23 fiscal year by 1%, but raised its net profit forecast for the 2024 fiscal year by 0.3%, and raised the Group's target price from HK$7.4 to HK$8.6, maintaining its outperforming market rating.