0159 GMT - China Mengniu Dairy's 2026 operating profit margin is likely to be stable, Citi analysts say. An expected sales recovery after years of decline should allow the company to invest in more sales channels and boost its top line, they say in a note. The analysts expect Mengniu's 1H sales growth to be a high single-digit percentage. Further revenue growth is likely to mitigate some raw-material-related headwinds, they say. This could help the company maintain or slightly improve its 2026 operating profit margin, compared with a multiyear high of around 8% in 2025, they add. Mengniu is Citi's top China consumer-staple pick. The bank retains its buy rating and target price of 22.70 Hong Kong dollars. Shares are down 0.5% at HK$16.18. (megan.cheah@wsj.com)
(END) Dow Jones Newswires
June 15, 2026 21:59 ET (01:59 GMT)
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