Changes in Hong Kong stocks | Dairy stocks collectively showed a rise in plateau milk prices, and institutions are optimistic about the sector's defensive attributes and upward cycle

Zhitongcaijing · 1d ago

The Zhitong Finance App learned that dairy stocks rose collectively. As of press release, Youran Animal Husbandry (09858) rose 6.37% to HK$3.59; Modern Animal Husbandry (01117) rose 6% to HK$1.325; China Feihe (06186) rose 3.7% to HK$2.665; and Mengniu Dairy (02319) rose 2.92% to HK$20.44.

According to the news, the Ministry of Agriculture and Rural Affairs's monthly supply and demand report for September shows that dairy owners' purchase price of fresh milk in provinces is 3.08 yuan per kilogram, up 1.7% from the previous year. Huaxi Securities pointed out that due to defensive attributes and cyclical certainty, the dairy sector can still be expected to obtain excess and performance returns within the consumer sector and earn performance+dividend income under reasonable valuations.

The bank said that the upward rebound in the raw milk cycle is superior animal husbandry + modern animal husbandry. The rebound in nursing milk prices has become a leading indicator of the cycle bottoming out and upward. It continues to be optimistic that the raw milk cycle will reverse to the historical average price level, and focus on the improvement in traditional demand and the incremental release of demand for deep processing in 26-27. This will be a key factor driving the raw milk cycle to break through the historical average price.