On September 4, YOURAN DAIRY rose 7.89% in regular trading, trading at HK$4.51/share, with turnover of HK$189 million, as dairy farming leaders extended their rally on strengthening raw milk cycle reversal signals.
On the news front, raw milk prices in major producing regions turned positive year-over-year in July despite the traditional off-season, while dairy cow inventory continued to decline, prompting market expectations that the raw milk cycle inflection point may arrive ahead of schedule. Huachuang Securities noted that upstream farms stand to benefit the most from rising milk prices, offering the greatest earnings elasticity. Guoyuan International maintained a Buy rating, stating that the dairy sector is poised for a cyclical reversal amid sustained destocking and gradual demand recovery.
The rally was further underpinned by YOURAN DAIRY's strong H1 results released on August 25, showing revenue of RMB 10.63 billion (+3.3% YoY) and attributable profit of RMB 806 million, a sharp turnaround from a loss of RMB 297 million a year earlier. The improvement was primarily driven by narrowing fair value losses on biological assets (down RMB 916 million YoY), lower feed costs (-4.7%), and a 6.6% increase in raw milk sales volume. Multiple brokerages see further profit upside as both raw milk and beef cattle price cycles enter an upward trajectory simultaneously.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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