According to a rating report published by Lyon, China Feihe's sales last year were in line with the bank's expectations, but the net profit margin fell short of the company's target and the bank's expectations. Looking ahead, the bank believes that even if the company relieves the pressure to remove inventory through discounts, it is cautious about its profit margins due to structural product portfolio changes, higher demand for marketing investment, offline activities and online expansion. Management expects sales to rise in double digits year on year this year, and believes that this will not be difficult to achieve, mainly considering the negative impact that the inventory removal strategy adopted last year had on sales. The bank lowered the company's net profit forecasts for this year and next year by 12% and 16% respectively, while lowering its target price to HK$6.8, maintaining its rating as outperforming the market.