CLSA released a research report stating that MENGNIU DAIRY's (02319) sales and adjusted net profit for the last fiscal year were largely in line with investor expectations. However, the report noted that the market appears more focused on the company's 2026 sales performance and the potential for a rebound from a low base. If raw milk prices stabilize, demand for liquid milk recovers, and the Consumer Price Index trends favorably, CLSA believes MENGNIU DAIRY's profit recovery could outpace its peers. The firm maintains a high-conviction Outperform rating with a target price of HK$21.1. Additionally, recent channel checks with distributors in Central China conducted by the firm indicate that MENGNIU DAIRY's shipments and actual sales of ambient liquid milk for January-February 2026 increased by a mid-single-digit percentage and slightly, respectively, compared to the same period last year.