HK Stock Market Move | MENGNIU DAIRY (02319) rises over 4%; shares up 20% cumulatively over the past month; management reiterates high-single-digit revenue growth guidance for FY2026

MENGNIU DAIRY (02319) share price moved higher, with the stock up 20% cumulatively over the past month. As of press time, it is up 4.00% at HK$21.34, with turnover of HK$697 million. On the news front, UBS released a research report stating that it recently exchanged views with MENGNIU DAIRY's management. Management reiterated its FY2026 guidance of high-single-digit year-on-year revenue growth and an operating margin of at least 8%, holds a positive view on maintaining steady sales growth next year, and expects the operating margin to expand by another 30 to 50 basis points, with the medium-term target still being for revenue to return to above RMB100 billion. The bank noted that among liquid milk products, fresh milk continued to outperform with about 30% growth, low-temperature yogurt returned to growth, and Satine's pricing and sales recovery also trended favorably. Management expects raw milk supply and demand to tighten over the next two to three years, driving a moderate price recovery; capital expenditure will be maintained at a restrained level of about RMB2 billion next year, and strong free cash flow provides room for further improving dividend payouts and shareholder returns.