Analysis of the Reasons for Yili Group (600887.SH) Being Popular and Its Continuous Attention Value

Yili Group (600887.SH), as the top dairy company in China and Asia and one of the top five in the world [1][2], made it to the hot list on December 21, 2025. The core driving factors are as follows:

1. Strengthened Expectation of Industry Recovery
   : Management clearly stated that the “most difficult time for the dairy industry has passed” [3]. The strategy of promoting sales and reducing inventory launched in Q2 2024 achieved remarkable results, with non-recurring net profit attributable to shareholders increasing by 24.19% YoY in Q1 2025 [2], boosting confidence in industry recovery.
2. Low Valuation with Repair Potential
   : According to a research report from Great Wall Securities, the company’s valuation is less than 20 times, at a historical low over the past decade (quantile <10%), and there is room for valuation repair compared with leading food and beverage companies horizontally [1].
3. Business Optimization and Innovation Support
   : R&D expenses increased by 2.33% YoY in 2024, with technological breakthroughs in lactoferrin, probiotics, and other fields [2]. The milk powder business, which accounts for 24.39% of revenue, has entered a harvest period [2], and business structure optimization supports long-term growth.
4. Market Sentiment Drive
   : As a leading dairy company, it benefits from the increased attention to the food and beverage sector and investors’ pursuit of consumer recovery concept stocks [0].

Due to data access limitations, real-time price and volume data around December 21, 2025, were not obtained, but the strong profit recovery in Q1 2025 provides fundamental support for the stock price.

• Resonance of Low Valuation and Industry Recovery
  : The current near-decade low valuation level [1] overlaps with the recovery trend of the dairy industry, forming a potential catalyst for the stock price.
• Long-term Value from Innovation and Business Upgrade
  : Continuous R&D investment and explosive growth of the milk powder business provide the company with growth momentum beyond the industry cycle, not just relying on short-term consumer recovery.

• Risk Points
  : Fierce competition with rivals such as Mengniu may squeeze market share and profit margins [2]; fluctuations in raw milk prices directly affect cost control [1]; changes in the macroeconomic environment may lead to fluctuations in consumer demand [3].
• Opportunity Window
  : Possibility of continued recovery in the dairy industry [3]; short-term investment opportunities brought by valuation repair [1]; long-term growth potential driven by business structure optimization and innovation [2].

Yili Group made it to the hot list due to its leading position, profit recovery trend, and low valuation appeal. It is recommended to focus on: 1) Q4 2025 and full-year performance announcements; 2) Raw milk price trends; 3) Overall performance of the food and beverage sector; 4) The company’s new product launches and market expansion.