HK Stock Market Move | YOURAN DAIRY (09858) rose more than 7% in the afternoon, with stock prices hitting a new high for the year. Institutions are optimistic about the large cycle of animal husbandry.

YOURAN DAIRY (09858) rose more than 7%, hitting a high of 4.91 Hong Kong dollars in intraday trading, setting a new high for the year. As of the time of publication, it had risen 7.73% to 4.88 Hong Kong dollars, with a trading volume of 153 million Hong Kong dollars. On the news front, Sinolink's research report pointed out that the price of raw milk has recently risen to around 3 yuan/kg, and the higher price has slowed down the industry's destocking rate. However, given the industry's significant financial pressure and continued losses, the industry's production capacity is expected to continue to destock. The bank predicts that as the gradual transmission of supply-side production capacity destocking unfolds, the price of raw milk is expected to stabilize and rise next year; in terms of beef cattle, prices of calves and live cattle have recently risen, and a new round of the beef cattle cycle is expected to begin, with the sector's prosperity expected to steadily improve, placing importance on the resonance between meat and milk. Public information shows that YOURAN DAIRY is the largest raw milk supplier in China, with 100 ranches and approximately 620,000 dairy cows. The company's raw milk production is estimated to reach 3.74 million tons by 2024, accounting for 12.1% of the national total production. The company has a leading layout in the upstream industry and is the largest provider of ruminant animal feed in China, with its subsidiary, Saikexing, being the largest dairy cattle breeding company in China. In the first half of this year, the company's average feed cost per kilogram of raw milk was 1.91 yuan, with a per-cow production reaching 12.9 tons, leading the industry.