HK Stock Market Move | MENGNIU DAIRY (02319) rose more than 5% and collaborated with "Nezha 2" to boost sales. Institutions had previously been optimistic about the company maintaining profit expansion.

MENGNIU DAIRY (02319) rose by more than 5%, rising 5.24% to HK$16.06 at the time of writing, with a turnover of HK$960 million. On the news front, CCB International previously pointed out that a decrease in raw milk costs and rigorous cost control should maintain the group's profit expansion. They anticipate a year-on-year improvement of 0.9 and 0.4 percentage points in gross margin and operating profit margin in the second half of the year. The bank stated that MENGNIU's primary task at present is to improve operational efficiency. They believe that healthier inventory, along with a more rational competitive environment, stable raw milk prices, and prudent cost control, will enhance the group's profitability. The bank expects the operating profit margin to expand by an average of 0.3 percentage points year-on-year in the 2025-26 fiscal year, while maintaining moderate performance growth. It is worth mentioning that MENGNIU Group has stated that after finalizing its partnership with "Ne Zha 2," it has deployed its entire product line and channels for the group. They have made advanced designs and plans from the scheduling to the release of the trailer, to the premiere and box office success. Many brands are involved, including MENGNIU Group's Dabai Milk, Selected Pastures, Yoghurt, Color Milk, Mengniu Big Fruit, Daily Fresh Language, and Mengniu Ruibuen Milk Powder. Currently, "Ne Zha 2" has had a significant impact on consumer demand, and Mengniu's sales have met expectations.