Today, $YOURAN DAIRY (09858.HK)$ The stock surged over 7%, hitting an intraday high of HKD 4.91, refreshing its year-to-date peak. As of the latest update, it rose 7.06% to HKD 4.85, with a turnover of HKD 159 million.
According to a research report by Guojin Securities, the price of bulk milk has recently rebounded to around RMB 3 per kilogram. The higher price of bulk milk has slowed down the pace of industry consolidation. However, given the significant financial pressure and continuous losses in the sector, production capacity is expected to continue contracting. The firm anticipates that as the reduction in supply-side capacity gradually takes effect, raw milk prices are likely to stabilize and rebound next year. Meanwhile, recent increases in calf and live cattle prices suggest that a new beef cycle may be on the horizon, with robust upward momentum for the sector. Attention should be paid to the synergistic effects between beef and dairy markets.
Public data shows that Youran Pasture is the largest raw milk supplier in China, currently operating 100 farms and raising approximately 620,000 dairy cows. In 2024, its raw milk production is expected to reach about 3.74 million tons, accounting for 12.1% of the national total output. The company has taken a leading position in the upstream industry and is the largest provider of feed for ruminants in China. Its subsidiary, Saikexing, is the largest dairy cattle breeding enterprise domestically. In the first half of this year, the average feed cost per kilogram of raw milk was RMB 1.91, with mature dairy cows producing an average of 12.9 tons each, representing an industry-leading level.
Editor/KOKO