Mengniu Dairy's stock price soared 5.03% during intraday trading on Thursday, reflecting strong investor sentiment following the release of the company's annual financial results.
The surge is primarily attributed to the company's impressive FY2025 performance, which showed a profit attributable to shareholders skyrocketing by 1,378.9% to RMB 1.55 billion. Despite a slight year-on-year revenue decline to RMB 82.24 billion, the gross profit margin improved to 39.9%. Furthermore, operating cash flow reached a record high of RMB 87.5 billion, marking a 5.0% increase.
Investor confidence was further bolstered by the board's recommendation of a final dividend of RMB 0.52 per share and the announcement of a three-year shareholder return plan (2025-2027) targeting steadily increasing dividends while maintaining the share repurchase pace. Analyst commentary also supported the positive outlook, with Citi stating the worst is likely over for the dairy giant and maintaining a buy rating, anticipating a margin recovery.
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