Changes in Hong Kong stocks | Dairy stocks had the highest increase in domestic raw milk prices or inflection points, rising overseas prices are expected to increase the height of cycle reversal

The Zhitong Finance App learned that dairy stocks had the highest gains. As of press release, Mengniu Dairy (02319) rose 9.48% to HK$19.87; Youran Animal Husbandry (09858) rose 4.61% to HK$3.405; Modern Animal Husbandry (01117) rose 2.43% to HK$1.265; and China's Feihe (06186) rose 2.20% to HK$2.56.

According to the news, according to statistics from the Ministry of Agriculture and Rural Affairs, as of October 15, the average price of raw milk in major domestic production areas was 3.10 yuan/kg, which remained flat from week to week, +1.97%. Guoxin Securities pointed out that under the current price of raw milk, the industry is generally in a state of cash loss. Subsequent increases in meat prices stimulate elimination, and production capacity is expected to accelerate elimination, and subsequent capacity reduction will involve large-scale production capacity, and raw milk prices are expected to usher in an upward price inflection point.

The bank pointed out that New Zealand, the world's main exporter of daikon, reduced the stock of dairy cows by more than 6% in 2024 compared to 2019. The global price of dabao powder has continued to rise since 2024. Currently, the domestic import price of dabao powder continues to be higher than the domestic raw milk price. Considering that dairy cows also have a long breeding cycle, the continued rise in overseas prices will help raise the height of the cycle reversal with domestic raw milk prices in 2027.