The Zhitong Finance App learned that the stock price of Mengniu Dairy (02319) has risen, and the stock price has risen 20% in January. As of press release, it rose 4.00% to HK$21.34, with a turnover of HK$697 million.

According to the news, UBS released a research report saying that in a recent exchange with Mengniu Dairy's management, the management reiterated that the 2026 fiscal year guidelines are to achieve a high year-on-year increase in revenue, with an operating profit margin of at least 8%. They have a positive view on maintaining steady sales growth next year, and expect operating profit margins to expand by another 30 to 50 basis points. The mid-term goal is still to return revenue to more than 100 billion yuan.

The bank pointed out that among liquid milk products, fresh milk continued to rise, with an increase of about 30%, while low-temperature yogurt resumed growth, and the recovery in pricing and sales of Terensul is also improving. Management expects supply and demand for raw milk to tighten in the next two to three years, leading to a moderate recovery in prices; capital expenditure will maintain a restraint level of about RMB 2 billion next year, and strong free cash flow will provide room for further improvements in dividends and shareholder returns.

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