Changes in Hong Kong stocks | Modern Animal Husbandry (01117) rose more than 7% in early trading, China's Shengmu acquisition was officially implemented, institutions are optimistic about improved ranch performance

The Zhitong Finance App learned that Modern Animal Husbandry (01117) rose more than 7% in early trading. As of press release, it had risen 6.96% to HK$1.23, with a turnover of HK$6.289,500.

According to the news, Hyundai Animal Husbandry announced that the offer to acquire China's Shengmu was reached unconditionally. Combining the original holdings and the shares accepted this time, Hyundai Animal Husbandry and its co-actors hold the vast majority of China Shengmu's shares. After the transaction was implemented, the Group's overall dairy cow inventory exceeded 610,000 heads, the annual production capacity of raw milk exceeded 4 million tons, and the proportion of specialty organic milk increased to more than 20%.

Zhongtai Securities pointed out that geopolitics at the beginning of the year led to a rise in crude oil prices, and the price of commodities, feed, etc. The increase in ranch farming costs is expected to accelerate storage removal. At the same time, deep-processing production capacity will continue to increase, and the balance between supply and demand may improve. We expect milk prices to reach an inflection point during the year, farm performance is expected to improve, and the performance of low-temperature milk and deep-processed cheese products may be superior to the dairy market. The suggestion is to focus on modern animal husbandry.