The dividend distribution and buyback plan of Yili Shares was approved by the shareholders' meeting, with the dividend proportion up to 73%

On May 20, Yili Shares held the 2023 annual general meeting of shareholders, which deliberated and passed a number of proposals, including the Company's 2024 Business Policy and Investment Plan, the Company's 2023 Profit Distribution Plan (hereinafter referred to as the profit distribution plan), and the Proposal on the Scheme of Repurchasing the Company's Shares by Centralized Bidding Transactions (hereinafter referred to as the Repurchase Proposal).

Site of Yili's 2023 Annual General Meeting of Shareholders

According to the profit distribution plan, Yili Shares will distribute a cash dividend of 12 yuan (tax included) per 10 shares to all shareholders, totaling 7.639 billion yuan, an increase of 1.018 billion yuan over the previous year, accounting for 73.25% of the company's net profit attributable to the parent company in 2023.

In addition, according to the repurchase proposal, within 12 months from now, the company will repurchase the company's shares of no less than 1 billion yuan and no more than 2 billion yuan at a price of no more than 41.88 yuan/share. The repurchased shares will be completely cancelled and the registered capital of the company will be reduced.

From the statistical data, Yili's dividend frequency, dividend proportion and dividend scale continue to rank among the top A-shares. According to public data, Yili has distributed dividends 24 times since its listing in 1996, with a total dividend of 50.859 billion yuan.

In terms of overlapping repurchase, Yili shares have a higher rate of return. In 2023, in the face of market fluctuations, Yili will take the initiative to repurchase and cancel about 32.47 million shares of the company, with a repurchase amount of more than 1 billion yuan.

Behind the continuous rich dividends is Yili's steady growth in business performance. The annual report released by the company on April 28 shows that Yili's total operating revenue in 2023 will be 126.179 billion yuan, and its net profit attributable to the parent company will be 10.429 billion yuan, increasing for 31 consecutive years.

Yili proposed in the Company's 2024 Business Policy and Investment Plan that this year it plans to achieve a total operating revenue of 130 billion yuan and a total profit of 14.7 billion yuan. At the 2023 performance briefing, Yili also reiterated the goal of improving the net profit margin in 2025, that is, "at least 9%", which conveyed the confidence of the enterprise in future development to the market.

Huachuang Securities Research Newspaper pointed out that under the current demand environment, the company, guided by a more stable and solid goal, appropriately sprayed powder on the upstream, maintained stable animal husbandry partners, actively adjusted channels in the downstream, guaranteed dealers' profits, and continued to consolidate the foundation of the whole industry chain. Under external pressure, the company focuses on the stability and growth quality of the whole industrial chain, and the long-term competitiveness is continuously consolidated, which is the premise of long-term cash flow stability. At the same time, the capital strategy is clear, the company takes the initiative to increase dividends, and starts repurchase again, which is a practical way to return shareholders and effectively enhance enterprise value in the era of high-quality development.

Wind financial terminal data shows that, as of the press release, there were more than 30 well-known securities institutions including CICC, China Merchants Securities, BOCOM International, Nomura Securities, etc., which gave Yili a positive rating of "buy" and "increase".

Wen/Li Xin

(This article does not constitute any investment advice, and the information disclosure content is subject to the company's announcement. Investors operate accordingly, and bear their own risks.)