Chinese Downstream Dairy Stocks Could Get Boost From Milk-Price Recovery -- Market Talk

Dow Jones04-29

0637 GMT - Shares of Chinese downstream dairy producers could get a boost from an expected recovery in raw milk prices, say DBS Group Research analysts in a note. Tightening supply and upstream consolidation are likely to improve raw milk prices after they potentially bottom in 2Q, the analysts say. The share prices of downstream producers China Mengniu Dairy and Inner Mongolia Yili typically move in tandem with raw milk prices, and the expected price recovery is likely to favor the two leaders of market share, they say. Both stocks' valuations also remain undemanding, the analysts say. DBS expects both companies to deliver high-single-digit core earnings growth, outperforming the broader sector.(megan.cheah@wsj.com)

(END) Dow Jones Newswires

April 29, 2026 02:38 ET (06:38 GMT)

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