The Zhitong Finance App learned that the leading ranch industry strengthened this morning. As of press release, Modern Animal Husbandry (01117) rose 8.46% to HK$1.475; Excellent Animal Husbandry (09858) rose 7.33% to HK$4.025.
According to the news, the price of raw milk has risen slightly from the bottom since this year. The contract price of milk in October was 3.10 yuan/kg, up from a low point of 3.02 yuan/kg in April; in early November, the price of loose milk in Ningxia reached 3.7 yuan/kg. Guosheng Securities believes that at present, supply and demand for raw milk have entered a tight balance. The supply side is in the context of natural elimination of dairy cows and a limited share of reserve cows. The demand side is making efforts for further processing. The subsequent supply and demand pattern may further increase milk prices and drive the upward trend in the raw milk cycle.
Everbright Securities previously pointed out 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 inventory in recent years, and the subsequent steady upward cycle of milk prices is expected to expand their competitive advantage. Combined with improved expectations for biological asset impairment, the profit side is expected to unleash greater flexibility. Therefore, the focus is on recommending leading enterprises in the animal husbandry industry, Youran Animal Husbandry and Modern Animal Husbandry.