中国婴儿奶粉行业报告.pdfVIP

China infant formula EQUITY: FOOD BEVERAGE Two propellers for growth Global Markets Research Prefer Biostime over Yashili 26 May 2014 Anchor themes We are positive on Chinas infant Product upgrade: Tiger mums of China driving high-end demand formula market with growing Our market survey suggests that Chinese parents are willing to pay top dollar consumption and continual for infant formula because of the “win-from-the-starting-line” mentality (赢在起 product mix upgrade, driven by 跑线), with many parents in upper-tier cities willing to pay CNY350/900g. We the willingness of Chinese expect this trend to continue, driving product mix upgrade. We also expect parents to pay top dollar. We industry volume to grow by 8% p.a. over the next five years from lower breast- prefer Biostime over Yashili due feeding rates and longer consumption period. to the formers premium brand, strong execution and good Industry consolidation accelerated by the government’s regulation relationship with baby-specialty Currently there are 127 domestic production licenses and we expect the new stores. domestic license requirements would lead to more than 40 players without a license on 31 May 2014 (est. c.5% of market share), thus accelerating the