Livestock stocks continued their upward momentum. As of press time, YOURAN DAIRY (09858) surged 10.26% to HK$3.33; CHINA SHENGMU (01432) climbed 9.23% to HK$0.355; YST DAIRY (01431) gained 3.39% to HK$0.305; and CH MODERN D (01117) rose 2.36% to HK$1.3.

On the news front, YST DAIRY announced it has entered into an agreement with controlling shareholder China Feihe to supply raw milk from 2026 to 2028, with proposed annual sales caps of RMB 3.1 billion, RMB 3.4 billion, and RMB 3.7 billion respectively, accounting for 96% of total revenue. The selling price of the proposed raw milk supply will be no less favorable than the prices offered to the group's independent third-party customers.

TF Securities noted that the current dairy cow capacity reduction may be nearing its end, and financial pressure from Q3 silage procurement could accelerate marginal clearing, with raw milk prices expected to bottom out and recover. Beef prices may reach an inflection point, but due to multiple factors including capital, confidence, and environmental concerns affecting restocking enthusiasm, subsequent price increases and sustainability may exceed expectations. Companies with cow breeding resources or adopting the "dairy-meat integrated" model demonstrate more outstanding profitability. The firm recommends focusing on YOURAN DAIRY, CHINA SHENGMU, Bright Food Meat, CH MODERN D, and Ausnutria Dairy Corporation.