Shares of CH MODERN D (01117.HK) extended their rally, rising more than 5% in Tuesday's trading session. As of press time, the stock was trading at HK$1.34, up 5.51%, with turnover reaching HK$10.569 million.

On the corporate front, CH MODERN D announced on July 20 that its acquisition offer for China Shengmu had become unconditional. Just days later, on July 23, the company released a profit alert, projecting a pre-tax profit of no less than RMB 43 million for the first half of 2026, a sharp turnaround from a pre-tax loss of approximately RMB 972 million in the same period of 2025.

Huaxi Securities noted that the return to profitability by leading dairy farming companies provides an initial signal that the dairy price cycle may be entering a reversal phase. The brokerage pointed out that the shrinking supply-demand gap, combined with the upcoming peak season from August to October, could accelerate the cyclical bottoming and recovery. Furthermore, the broker believes the first-half profit alert bolsters confidence in a significant full-year profit improvement, with the transition from balance-sheet financial improvements to operational profit gains gradually taking shape.