HK Stock Market Move | CH MODERN D(01117) surged over 6% as half-year profit expectations combined with the successful acquisition indicate that the industry is expected to enter a profitable growth phase.

CH MODERN D (01117) rose over 6%, and as of the time of publication, it is up 5.67%, priced at HKD 1.49, with a transaction volume of HKD 49.2493 million. In terms of news, recently, CH MODERN D and its concerted party Start Great (a subsidiary of China Mengniu) successfully completed the conditional cash tender offer for China Shengmu. Based on the cattle inventory as of the end of 2025, the total inventory of dairy cows after the merger of Modern and Shengmu will reach 604,000. Moreover, CH MODERN D previously projected that its pre-tax profit for the first half of the year would not be less than RMB 43 million, achieving a turnaround from loss to profit year-on-year. Additionally, according to Founder Research, the average price of raw milk in key production areas in July was RMB 3.05 per kilogram, an increase of 0.7% month-on-month and 0.3% year-on-year, ending a continuous decline since February 2022. Hua Chuang Securities believes that with the ongoing optimization of the supply-demand landscape, the industry is accelerating its exit from the bottom operating range and entering a path of profit growth.