Infants-related products and services are big business due to parents’ willingness to provide the best for their children. One key sector is the infant formula industry, where parents splurge on branded milk powder that comes with all the DHAs and AHAs. China Feihe Ltd (HKG: 6186) is one of the major infant formula producers in China that has benefited from parents’ rising spending on children. We shall take a closer look at its history, earnings, market position, and growth opportunities in this article.

Business Overview 

Feihe is the largest Chinese infant milk formula producer, according to the Frost & Sullivan IPO report commissioned by the group. Its brand ranked first among domestic and international companies with a 7.3% market share in 2018. Among domestic producers, the group ranked first with 15.6% of total retail sales value in 2018. Feihe prides itself as a local enterprise that knows Chinese babies well,...