Mengniu rises more than 6% against the trend, leading the Hong Kong stock consumer sector

On March 26, Mengniu Dairy (2319.HK) opened significantly higher, rising against the trend, leading the consumer sector.

Driven by the company’s latest favorable financial report for the fiscal year 2025, it once rose over 6% during trading. By the time of the midday close, it reported at HKD 16.42, an increase of 3.27%, with trading volume significantly expanded, surpassing the total trading amount of the previous trading day.

On the 25th, Mengniu Dairy released its performance report for the fiscal year 2025. In the face of multiple challenges such as insufficient domestic demand growth and deep structural adjustments in the industry, Mengniu’s development resilience has significantly strengthened, achieving an annual revenue of 82.24 billion yuan and an operating profit of 6.56 billion yuan. The gross profit margin reached 39.9%, operating cash flow was 8.75 billion yuan, and free cash flow was 6.3 billion yuan, with all three metrics reaching historical highs.

It is noteworthy that Mengniu’s liquid milk sales revenue has stabilized and rebounded, especially since entering 2026, with various marketing activities during the “New Year” effectively driving sales growth, demonstrating the overall recovery trend in the industry. Domestic and foreign investment banks have previously given positive evaluations, believing that its exposure to liquid milk revenue is expanding, and under the background of overall industry recovery, profit elasticity will significantly increase, leading the peers.

Citigroup pointed out that it expects Mengniu’s sales in 2026 to recover to mid-single-digit to low-single-digit growth, with profit margins expanding again, as raw milk prices are expected to cyclically rebound around mid-year, positive operating leverage, joint ventures turning profitable, and a low base. The most challenging period is likely over, maintaining a “buy” rating for Mengniu.

After the financial report was released, statistics showed that among all 22 participating rating institutions, 95% of brokerages gave buy recommendations, 5% gave hold recommendations, and no brokerages gave sell recommendations.

(Reporter: Jiang Yongdan)

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