Galaxy Securities pointed out that in July, domestic fresh milk prices were +0.3% year-on-year, and were corrected for the first time in nearly 5 years, reflecting a gradual balance in the industry's supply and demand pattern. Furthermore, baby milk prices began to rise first in March, strengthening the signal of a recovery at the bottom of the milk price cycle. Looking ahead to the future market, considering the current milk source structure and downstream demand recovery trend, it is determined that the trend after the milk price growth rate is corrected this time may be similar to 2016, showing a slight moderate upward trend, which will drive downstream competition to slow down and impairment losses to decrease, which in turn will drive related listed companies to recover their profitability.

Galaxy Securities pointed out that in July, domestic fresh milk prices were +0.3% year-on-year, and were corrected for the first time in nearly 5 years, reflecting a gradual balance in the industry's supply and demand pattern. Furthermore, baby milk prices began to rise first in March, strengthening the signal of a recovery at the bottom of the milk price cycle. Looking ahead to the future market, considering the current milk source structure and downstream demand recovery trend, it is determined that the trend after the milk price growth rate is corrected this time may be similar to 2016, showing a slight moderate upward trend, which will drive downstream competition to slow down and impairment losses to decrease, which in turn will drive related listed companies to recover their profitability.