Understanding the Market | Livestock Stocks Continue to Rise, Dairy Cow Capacity Reduction May Be Nearing Its End, Institutions Say Dairy-Meat Linkage Model Companies Have Outstanding Profitability
Livestock stocks continue to rise. As of the time of writing, YOURAN DAIRY is up 10.26%, trading at HKD 3.33; CHINA SHENGMU is up 9.23%, trading at HKD 0.355; YST DAIRY is up 3.39%, trading at HKD 0.305; CH MODERN D is up 2.36%, trading at HKD 1.3. In terms of news, YST DAIRY announced that it has signed an agreement with its controlling shareholder China Feihe to supply raw milk from 2026 to 2028, with proposed annual sales caps of RMB 3.1 billion, 3.4 billion, and 3.7 billion, accounting for 96% of total revenue; the price of the raw milk to be supplied will not be lower than the prices offered to the group's independent third-party customers. Tianfeng Securities pointed out that the current reduction in dairy cow capacity may be nearing its end, and the financial pressure from Q3 silage purchases may accelerate the clearing of margins, with raw milk prices expected to bottom out and rebound; beef prices may reach a turning point, but due to multiple factors such as funding, confidence, and environmental protection affecting restocking enthusiasm, the subsequent increase and sustainability may exceed expectations. Companies with cow resources or adopting a "milk-meat linkage" model will have more prominent profitability. It is recommended to pay attention to YOURAN DAIRY, CHINA SHENGMU, Bright Meat Industry, CH MODERN D, and Aoyah Group
According to Zhitong Finance APP, livestock stocks continue to rise. As of the time of writing, YOURAN DAIRY (09858) is up 10.26%, trading at HKD 3.33; CHINA SHENGMU (01432) is up 9.23%, trading at HKD 0.355; YST DAIRY (01431) is up 3.39%, trading at HKD 0.305; CH MODERN D (01117) is up 2.36%, trading at HKD 1.3.
On the news front, YST DAIRY announced that it has signed an agreement with its controlling shareholder China Feihe to supply raw milk from 2026 to 2028, with proposed annual sales caps of RMB 3.1 billion, 3.4 billion, and 3.7 billion, accounting for 96% of total revenue; the price of the raw milk to be supplied will not be lower than the prices offered to the group's independent third-party customers.
Tianfeng Securities pointed out that the current reduction in dairy cow production capacity may be nearing its end, and the financial pressure from Q3 silage purchases may accelerate the clearing of margins, with raw milk prices expected to bottom out and rebound; beef prices may reach a turning point, but due to multiple factors such as funding, confidence, and environmental protection affecting restocking enthusiasm, the subsequent increase and sustainability may exceed expectations. Companies with cow resources or those adopting a "milk-meat linkage" model will have more prominent profitability. It is recommended to pay attention to YOURAN DAIRY, CHINA SHENGMU, Bright Meat Industry, CH MODERN D, and Aoyuan Group, among others
