Youran Dairy (09858) saw its share price climb over 7% during the trading session, with the stock rising 6.49% as of the latest update, reaching HKD 3.94 on a turnover of HKD 131 million.

The Ministry of Agriculture and Rural Affairs recently reported that the national average raw milk price stood at RMB 3.05/kg on July 16. Since June 12, 2025, this marks the first time milk prices have exceeded the bottom range of RMB 3.02-3.04/kg. Additionally, data from the Shandong Dairy Association shows that recent loose milk prices have rebounded to RMB 2.8-3.1/kg, surpassing contract milk prices.

In other developments, Modern Dairy recently completed its tender offer for China Shengmu and released a positive profit alert for the first half of the year. Analysts from Huachuang Securities suggest that this highlights the industry's trend toward capacity concentration among leading players, while also confirming the profit resilience of industry leaders during the market's recovery phase.

Guosheng Securities noted that a major cyclical reversal in the dairy farming sector is likely imminent, projecting a strong synchronous upturn in both domestic meat and milk markets. This would lead to highly elastic earnings recovery for dairy farming companies.

Huachuang Securities further pointed out that as the supply-demand balance continues to improve, the industry is accelerating its departure from the bottom range and entering a profit uptrend. Considering that the benefits of rising milk prices first flow to the upstream breeding segment, the pace and elasticity of profit improvement at the farm level are more pronounced, reinforcing the sector's allocation value.