By Martin Mou
Shares in Inner Mongolia Yili Industrial Group Co. rose by the 10% daily trading limit on Friday following the Chinese dairy giant's better-than-expected quarterly results.
Analysts say Yili's first-half results showed it staged a strong rebound in the second quarter following the Covid-19 pandemic's impact on the first quarter.
The 72% surge in Yili's net profit significantly exceeded market expectations, Pacific Securities says, noting the growth was driven by improved margins.
Yili said late Thursday that its first-half net profit fell 1.2% to 3.74 billion yuan ($542.8 million), while operating income for the period rose 5.3% to CNY47.34 billion.
China Mengniu Dairy Co., Yili's closest rival, posted a 42% drop in first-half net profit, weighed by higher expenses due to safety measures relating to pandemic.
Pacific Securities said it expects Yili to ride on the growing consumption of dairy products in China to maintain rapid revenue growth over the next two to three years.
Yili's Shanghai-listed shares were last at CNY40.59.
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