Macquarie initially rated Global Dairy (1007.HK) as outperforming the market, with a target price of HK $4.40. The bank said its current price was only 9.2 times expected earnings for 11 years, lower than its mainland counterparts. The bank believes that the stock is superior to 1717.HK because of its vertical comprehensive development and more effective control of quality and cost. The bank also believes that the current price of the stock is 30% lower than the listed share price, reflecting the market's misgivings about further reports of dairy products containing melamine in the mainland.

Global Dairy closed yesterday at HK $3.08, with no rise or fall.