HK Stock Market Move | YOURAN DAIRY (09858) rose nearly 5% in the morning session, driven by a dual-cycle resonance in both dairy and meat sectors, turning losses into profits, with profit elasticity expected to be further released.

YOURAN DAIRY (09858) rose nearly 5% in early trading, and as of the time of writing, it has increased by 4.55%, reaching HKD 4.02, with a trading volume of HKD 20.9 million. In terms of news, YOURAN DAIRY expects its net profit attributable to shareholders in the first half of the year to be between approximately RMB 739 million and RMB 903 million, a substantial turnaround from losses in the same period last year. This is mainly due to a narrowing decline in raw milk prices, a continued rise in the price of, improved milk production per cow, and a decrease in feed costs, which led to a significant reduction in the loss from fair value changes in biological assets year-on-year in the first half of the year; the raw milk business benefited from increased sales and declining feed costs, while the systematic solutions for ruminant animal farming boosted the gross profit in the first half of the year through product iteration and structural optimization. Huatai released a research report stating that, overall, the core business performance of the company continues to improve. The rise in the price of has brought better revenue, and the dual cycle of "milk + meat" is entering an upward channel, which is expected to jointly drive the continuous narrowing of the company's fair value losses. Under the resonance of the dual cycle, the company's profit elasticity is expected to be further released in the second half of the year.