Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SH) Reasons for Popularity and Comprehensive Analysis

Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SH) is a leading enterprise in China’s dairy industry and delivered steady performance in 2025. In the first three quarters, it achieved revenue of RMB 90.564 billion, a year-on-year increase of 1.71%; net profit of RMB 10.103 billion, a year-on-year increase of 18.73%[0]. The company recently won four World Dairy Innovation Awards, ranking first globally in the number of awards[0], and had accumulated 995 domestic and foreign invention patent authorizations by the end of June 2025[0]. However, the company was removed from the Hang Seng HKEX Shanghai-Hong Kong-Shenzhen Connect China Enterprises Index on November 21, effective December 8[3]. It accounts for 6.83% of the weight in the Fullgoal CSI Consumer 50 ETF[4].

Reasons for becoming a popular stock include: stable leading position in the industry[0], strong profitability[0], demand driven by consumption upgrading and enhanced health awareness[0], policy support for the development of domestic dairy products[0], and favor from institutional funds[0].

1. Contrast between fundamentals and short-term events: Despite being removed from the index, the company’s fundamentals remain strong and its innovation capabilities are prominent, indicating that the market focuses on core value.
2. Innovation-driven competitiveness: Multiple international awards and a large number of patents reflect the company’s leading position in product innovation.
3. Confidence signal from institutional holdings: As an important component stock of ETFs, continuous institutional attention indicates confidence in long-term development.

: Index removal may lead to outflows of some passive funds[3], short-term stock price fluctuation risk.
: Growth in dairy product demand under the trend of consumption upgrading[6], policy support for domestic substitution[0], and innovative products bringing new growth points[0].

Inner Mongolia Yili Industrial Group Co., Ltd. maintains market popularity through its leading position, strong financial performance, and innovation capabilities. Although facing short-term impacts from index adjustments, its long-term fundamentals and industry trends remain attractive. Investors should pay attention to the company’s strategic execution and changes in market demand.