Changes in Hong Kong stocks | Youran Animal Husbandry (09858) rose by more than 4%, and the beef raw milk cycle is expected to resonate and be supported by animal husbandry companies' profit improvement

The Zhitong Finance App learned that Youran Animal Husbandry (09858) rose by more than 4%. As of press release, it had risen 4.56% to HK$5.27, with a turnover of HK$62.757 million.

According to the news, the Ministry of Commerce recently announced the results of the ruling on imported beef and decided to implement “national quotas and additional tariffs”. The 2026 quota is 2.688 million tons, and 55% tariffs will be imposed on the excess portion. CITIC Securities expects a cumulative decline of more than 10% in 2024 and 2025H1 beef cattle industry, which will affect the release of beef from 2025H2-2026. Combined with the decline in imports, tight supply is expected to drive the price of beef and live beef to continue to rise. In terms of the raw milk cycle, the continuous elimination of dairy cows is compounded by the deep-processing of dairy products to boost demand, as well as earlier EU countervailing rulings. They are optimistic about the subsequent recovery in milk prices. The beef raw milk cycle is expected to resonate and support the improvement of profits of animal husbandry companies.

According to public information, Youran Animal Husbandry is the largest supplier of raw milk in China. It currently has 100 ranches, raises about 620,000 cows, and produces about 3.74 million tons of raw milk in 2024, accounting for 12.1% of the country's total output. The company has a leading position in the upstream industry and is the largest ruminant feed provider in China. Its subsidiary Secco Star is the largest dairy breeding enterprise in China. In addition, the company relies on Yili Group, the majority shareholder. In 2024, Yili will contribute 95% of the company's raw milk revenue, and the company will account for about 40% of Yili's total raw milk procurement.