GF Securities: Initiates Youran Dairy (09858.HK) with "Buy" Rating, Fair Value HK$5.87

Zhito Finance APP has learned that GF Securities has issued a research report, initiating coverage on Youran Dairy (09858.HK) with a "Buy" rating. With reference to the valuations of comparable companies and taking cyclical factors into comprehensive consideration, the firm assigns the company a 2027 P/E ratio of 7x, which, based on the RMB-to-HKD exchange rate of 0.86 HKD/CNY, corresponds to a fair value of HK$5.87 per share. The firm forecasts the company's net profit attributable to shareholders for 2026-2028 to be RMB 1.508 billion, RMB 3.227 billion, and RMB 3.415 billion, respectively, with earnings per share of RMB 0.34, RMB 0.72, and RMB 0.76, respectively. The firm believes that the company's core raw milk business has clear comprehensive advantages, product mix optimization is driving premium sales, and the upward beef cattle cycle is expected to enhance earnings elasticity.