HK Stock Market Move | MENGNIU DAIRY(02319) Rises Over 6%; Rebound in Milk Prices Expected to Drive Profitability Improvement, Institutions Optimistic Company Will Enter a New Cycle

MENGNIU DAIRY (02319) moved higher intraday, rising 6.61% as of press time to HK$19.35, with turnover of HK$422 million. On the news front, Galaxy Securities noted that Mengniu, as one of the two dairy giants, has long-term investment value. Over the past five years, the company underwent a period of adjustment due to the industry downturn and its own strategic factors. At the current juncture, the brokerage believes the company's fundamentals and valuation have both adjusted sufficiently, with bottoming signals gradually becoming clear. Looking ahead, as the dairy industry enters a new development cycle, the company is expected to embark on a new round of growth leveraging its deep heritage. It is worth noting that raw milk prices had been declining for the past five years, and in July 2026, year-on-year growth turned positive for the first time. Inner Mongolia Yili Industrial Group stated at its Q3 2026 results briefing that since the beginning of this year, supply and demand in the upstream industry chain have continued to optimize, with contract milk prices in the third quarter rising slightly year on year, as supply and demand gradually move toward balance. Looking ahead to next year, on the demand side, packaged dairy products are expected to recover modestly, the trend of domestic substitution in deep dairy processing is expected to continue, milk prices are expected to enter a phase of moderate recovery, and the industry is returning to a healthier and more rational stage of development.