YOURAN DAIRY (09858) surged more than 8% in morning trading, with shares last up 8.51% at HK$4.40, on turnover of HK$108 million. The company's first-half results showed a significant turnaround, posting a shareholder-attributable profit of 806 million yuan compared with a loss in the same period last year.

The dairy producer recorded revenue of 10.627 billion yuan for the first six months of the year, a year-on-year increase of 3.3%. The profit reversal was largely driven by a narrower decline in raw milk market prices, improved margins on culled cattle, lower feed costs, and higher milk yield per cow. The net loss from the fair value adjustment of biological assets minus selling costs narrowed dramatically by 916 million yuan year-on-year to 1.316 billion yuan, providing the core momentum behind the swing to profitability.

According to SDIC Securities, the company's pasture operations remain an industry benchmark, and with the anticipated cyclical turnaround in both raw milk and beef cattle pricing, there is considerable room for future profit expansion. The firm highlighted that improved operating efficiency coupled with the dual price cycle reversals positions the company for sustained earnings growth.