Yamato: Reiterates Mengniu Dairy's (02319) “Buy” Rating Target Price to HK$22

The Zhitong Finance App learned that Yamato released a research report saying that the management of Mengniu Dairy (02319) raised this year's revenue guidelines to a high unit increase. The bank expects the impact of Mengniu's price reduction measures last year to subside, and the core operating profit margin will expand year-on-year in the second half of the year. Looking ahead to 2027-28, Yamato expects the competitive pattern in the liquid milk sector to gradually improve due to the restoration of balance between upstream raw milk supply and demand, and will benefit market leaders led by Mengniu. The bank raised Mengniu's earnings estimates per share by 1 to 4% from 2026 to 28, beat expectations by rebounding the sales recovery trend, and reaffirmed the “buy” rating. The target price was raised from HK$21.5 to HK$22.