Citi: The mainland's birth population decreased by 17% last year, expected to create headwinds for infant formula stocks

Citigroup's research report pointed out that data from the National Bureau of Statistics of China shows that the number of newborns in the mainland last year was only 7.92 million, a significant decrease of over 1.6 million compared to 2024, a year-on-year decline of 17%. This data falls short of Citigroup's expectations and may pose headwinds for infant formula stocks.

Citigroup noted that although the government has introduced several measures to encourage childbirth, such as extending maternity and paternity leave, relaxing marriage registration regulations, and raising the retirement age, this situation still persists. The low birth rate poses an increasingly severe demographic challenge for China. The government may introduce more incentive measures in the future to promote marriage and childbirth.

The following are Citigroup's ratings and target prices for infant formula stocks:

Stock | Investment Rating | Target Price (HKD)

CHINA FEIHE (06186.HK) | Neutral | 4.3

H&H INTL HLDG (01112.HK) | Buy | 18.8

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