0316 GMT - China's dairy sector faces a dearth of catalysts given weak liquid-milk sales growth and a slower-than-expected turnaround for categories including yogurt, infant milk powder and cheese, which could delay valuation rerating in the sector, UOB Kay Hian analysts say in a note. The brokerage downgrades the Chinese dairy sector to market weight from overweight and turns conservative on companies' 2024 top-line growth guidance. UOB KH switches its top pick to Inner Mongolia Yili Industrial Group on its high dividend payout ratio and lower price points, which should benefit from the consumption slowdown. The brokerage rates Yili and China Mengniu Dairy at buy. (hoishan.chan@wsj.com)
(END) Dow Jones Newswires
January 17, 2024 22:16 ET (03:16 GMT)
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