According to Zhi Tong Finance APP, Mengniu Dairy (02319) shares have climbed, with the stock price accumulating a 20% gain over the past month. As of press time, the stock is up 4.00% at HK$21.34, with turnover of HK$697 million.
On the news front, UBS released a research report stating that it recently engaged with Mengniu Dairy management. Management reiterated its FY2026 guidance of high single-digit year-on-year revenue growth and an operating profit margin of at least 8%. They hold a positive view on maintaining steady sales growth next year and expect the operating profit margin to expand by another 30 to 50 basis points, with the medium-term target still being a return to revenue above RMB 100 billion.
The bank noted that among liquid milk products, fresh milk continues to outperform, achieving approximately 30% growth, while low-temperature yogurt has returned to growth, and Tesun pricing and sales recovery are also trending positively. Management expects raw milk supply and demand to tighten over the next two to three years, driving a moderate price recovery. Capital expenditure is expected to remain at a restrained level of approximately RMB 2 billion next year, and strong free cash flow provides room for further improving dividend payouts and shareholder returns.
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