According to the Wisdom Financial APP, dairy industry stocks led the gains. As of the time of publication, China Feihe (06186) rose by 5.21% to HK$5.86; Youran Dairy (09858) rose by 3.85% to HK$1.35; Mengniu Dairy (02319) rose by 3.27% to HK$16.44; Ausnutria (01717) rose by 2.02% to HK$2.02.

GF Securities pointed out that since 2024, raw milk has been in a downward cycle, with the situation of oversupply continuing. In the first half of the year, leading dairy companies promoted destocking, leading to significant pressure on financial statements. Since Q3, as channel inventory gradually becomes healthier, coupled with stocking up for the Mid-Autumn Festival and National Day double festivals stimulating sales, dairy companies' shipments are expected to improve compared to Q2, and the decline in income may narrow. According to Ma Shang Ying's monitoring of offline channel sales performance, the decline in dairy product sales in July-August narrowed overall compared to the previous period. Since September, the Ministry of Agriculture and various provinces and municipalities have increased their support for the dairy industry.

China Securities Co. Ltd. pointed out that the dairy industry is one of the sectors stimulated by policies. Ahead of the holidays, dairy products have received a series of policy support, including encouraging eligible regions to stimulate milk consumption by issuing consumer vouchers, etc. It is expected that the Q3 fundamentals of various dairy industry companies will improve on a stabilized basis. In addition, in terms of costs, this year the cost of raw milk has been running at a low level, with fresh milk maintaining a basic double-digit decline year-on-year, while in fodder, such as corn prices, there has also been a decrease, improving breeding costs, reducing cost pressure for dairy companies.