Dairy stocks saw gains in today's trading session. At the time of writing, CH MODERN D (01117) rose 6% to HK$1.59, while YOURAN DAIRY (09858) climbed 5.58% to HK$4.73.

On the news front, Shenwan Hongyuan pointed out that according to Mysteel data, the national average price for fattening bulls last week was 25.75 yuan/kg, up 0.03% week-on-week. The average price for calves was 34.27 yuan/kg, an increase of 1.1% compared to the previous week. Data from the Ministry of Agriculture and Rural Affairs showed that the average price for fresh milk in main producing regions was 3.03 yuan/kg on March 5, unchanged from the previous week but down slightly by 0.01 yuan/kg compared to pre-holiday levels.

The brokerage is optimistic about the dairy industry reaching a cyclical turning point in 2026 with a simultaneous improvement in both meat and milk markets. It anticipates that calf prices will begin a trend of increase after the Spring Festival and recommends monitoring YOURAN DAIRY and CH MODERN D.