6186 Equity Research & Reports

Recent institutional research on 6186 highlights a widening contraction across China's infant formula sector through mid-2026. Industry-wide offline sales declined 13% year-over-year in May–June, primarily driven by a 13.6% drop in volume, marking an acceleration from the 8% decline recorded in March–April. Online channels also faced mounting pressure, with combined sales dropping 18% year-over-year in July as a 29% contraction on JD offset a 5% gain on Tmall and Taobao. Within this operating backdrop, Feihe's offline sales run-rate declined by 13% year-over-year, moving in line with overall market trends. In comparison, peer Yili outperformed with a milder 5.5% drop, while A2 Milk suffered a 67% sales drop in mother-and-baby stores due to supply disruptions. Despite overarching market weakness, structural consolidation continued as large domestic brands collectively expanded their offline value share to 63.5%.