The Zhitong Finance App learned that dairy stocks generally rose today. As of press release, Mengniu Dairy (02319) rose 3.25% to HK$18.76; Youran Animal Husbandry (09858) rose 2.31% to HK$3.54; and Modern Animal Husbandry (01117) rose 2.21% to HK$1.385.

According to the news, the price of raw milk may have reached an inflection point. On September 30, the average price of raw milk in major domestic production areas was 3.10 yuan/kg, up 0.32% month-on-week and 1.97% year-on-year. Everbright Securities believes that Youran Animal Husbandry and Hyundai Animal Husbandry are leading ranches, backed by leading dairy companies represented by Irimon Cows. They have bucked the trend and expanded their inventories in recent years, and the subsequent steady upward cycle of milk prices is expected to expand their competitive advantage. Lyon pointed out earlier that stabilizing raw milk prices will benefit leading dairy companies with strong upstream resource control capabilities. Among them, Mengniu Dairy's liquid milk business accounts for a relatively large share, and there is considerable room for profit rebound. Coupled with low valuations, it is expected to become the main beneficiary.

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