HK Stock Market Move | Raw milk prices have entered an upward cycle. YOURAN DAIRY (09858) rose over 3%, and CH MODERN D (01117) rose over 2%.

Dairy farm leaders rose. As of press time, YOURAN DAIRY (09858) gained 3.3% to HK$4.22; CH MODERN D (01117) gained 2.58% to HK$1.59. On the news front, raw milk prices have now shown signs of stabilizing. In the fourth week of August, the average price of fresh milk in major producing provinces nationwide was 3.06 yuan/kg, up 1.3% year-on-year and flat month-on-month. On the supply side, as of the end of June 2026, the national dairy cow herd stood at about 5.772 million head, down about 12.5% from the 2023 peak. A CLSA research report pointed out that during an upward cycle in raw milk prices, upstream dairy farmers typically enjoy greater profit leverage. Assuming other factors remain unchanged, a rise of 10 cents per kilogram in raw milk prices would bring CH MODERN D about RMB 320 million in profit (excluding the consolidation of Shengmu).