1、China dairySector outlookMarket share of top 10 players in the adult milk powder market in the past 5 yearsSource:CLSA CLSA and CL Securities Taiwan Co.,Ltd.(“CLST”)do and seek to do business with companies covered in its research reports.As such,investors should be aware that there may be conflicts

2、 of interest which could affect the objectivity of thereport.Investors should consider this report as only a single factor in making their investment decisions.For important disclosures please refer to page 15.Terrance Liu,CFA+852 2600 8966Susan Zhang+852 2600 833730 June 2021ChinaConsumerChina Feih

3、e6186 HKRecBUYMarket capUS$20.3bn3M ADVUS$87.3mPriceHK$17.50TargetHK$30.00Up/downside+71%Yashili1230 HKRecBUYMarket capUS$0.4bn3M ADVUS$0.2mPriceHK$0.71TargetHK$1.70Up/downside+139%Yili600887 CHRecBUYMarket capUS$35.1bn3M ADVUS$360.7mPriceHK$37.30TargetHK$53.00Up/downside+42%Thanks for your support

4、in the Please click here for our voting matrix.Embrace the silver economyPotential boom of Chinas AMF market benefits Feihe,Yashili and YiliAdult milk formula(AMF)has been gaining attention amid the rise of the silver economy with an increasing number of companies entering the field.We expect the AM

5、F market to reach Rmb42bn in 2025(vs.Rmb20bn in 2020),mainly due to an accelerating ageing population,AMF penetration improvements and product premiumisation.Leading infant milk formula(IMF)players,Feihe,Yashili and Yili,willbe key beneficiaries,given their solid brand equity,extensive distribution

6、channelsand strong marketing capabilities.Yashili is our dark horse pick,and it is likely tobenefit most from the silver economy while Feihe is also like to succeed in this field,in our view.Attractive market with a promising outlookqWe expect the market to boom in the future thanks to an accelerati