HK Stock Market Move | Dairy stocks rise collectively as raw milk prices recover; institutions are bullish on the sector's defensive attributes and upward cycle

Dairy stocks rise collectively. As of press time, YOURAN DAIRY (09858) is up 6.37% at HK$3.59; CH MODERN D (01117) is up 6% at HK$1.325; CHINA FEIHE (06186) is up 3.7% at HK$2.665; MENGNIU DAIRY (02319) is up 2.92% at HK$20.44. On the news front, the Ministry of Agriculture and Rural Affairs' September supply and demand monthly report shows that the purchase price of raw milk in major dairy-producing provinces is RMB3.08 per kilogram, up 1.7% year on year. Huaxi pointed out that the dairy sector, given its defensive attributes and the certainty of an upward cycle, is still expected to achieve excess returns and earnings gains within the consumer sector, earning both performance and dividend returns at reasonable valuations. The bank stated that the core names for earnings rebound amid the upward raw milk cycle are YOURAN DAIRY + CH MODERN D. The rebound in loose milk prices has become a leading indicator of the cycle bottoming out and turning upward. It remains bullish on the raw milk cycle reversing and recovering to the historical average price level, and will monitor the improvement in traditional demand and the release of incremental demand from deep processing in 2026-27, which will become the key factor determining whether the raw milk cycle can break through the historical average price and rise further.