Goldman Sachs: Maintains "buy" rating on MENGNIU DAIRY (02319) but lowers target price to HK$22.8

23/06/2025

Considering that market demand remains weak, it is expected that Mengniu Dairy (02319) will see a year-on-year decline of about 3% in liquid milk sales for the full year, compared to a drop of about 5% in the first half of the year.

Goldman Sachs released a research report stating that, considering the continued weak market demand, it is expected that Mengniu Dairy's (02319) liquid milk sales for the full year will decline by about 3% year-on-year, compared to a 5% drop in the first half of the year. Goldman Sachs has lowered its sales forecast for Mengniu for the years 2025 to 2027 by about 2%, and its recurring net profit forecast by about 1%. The forecast for the share of losses in joint ventures for Mengniu in 2025 has been adjusted from 415 million yuan to 734 million yuan. The target price has been adjusted from 23 Hong Kong dollars to 22.8 Hong Kong dollars. It believes that Mengniu has profit margin resilience and cost advantages, and maintains a "buy" rating.