Analysis of Yili Group (600887.SH) Popularity Reasons and Investment Value Assessment

Yili Group (600887.SH) has become a popular stock driven by multiple factors: rotation in the food and beverage sector amid consumption recovery trends [1], with the dairy sector leading gains in November [2]; solid company fundamentals—H1-H3 2025 revenue of 90.341 billion yuan (+1.81%), net profit of 10.426 billion yuan (-4.07%) [3], ROE of 15.22% [4]; high dividend policy (payout ratio of 73.17%, dividend yield of 4.2%) attracting long-term capital [5]; outstanding innovation capability, winning four global dairy innovation awards and holding 995 patents [6].

Cross-domain correlations show that consumption recovery (total retail sales of consumer goods +4.5%) [7] and brokerages’ rating upgrades [8] have jointly driven capital inflows; the company’s enhanced international influence (global dairy innovation awards) has boosted brand value; the high payout ratio (73.17%) is attractive in the current low-interest rate environment.

: Short-term net profit has slightly declined (Q3 YoY -3.35%) [9], requiring attention to cost control; intensified industry competition may impact profit margins.
: The dairy sector is expected to maintain strength amid sustained consumption recovery; the company has great potential for international market expansion; innovative products (e.g., cheese, packaged water) may become new growth drivers.

As a leading dairy company, Yili Group has solid fundamentals, benefiting from consumption recovery and sector rotation. Its high dividend policy provides stable returns, and its innovation capability supports long-term development. Current valuations are reasonable (PE 22.57, PB 3.21) [10]; it is recommended to monitor consumer sector dynamics and the company’s new product progress.