Grizzly 11.4 Lyon released a report, stabilizing raw milk prices is beneficial to Mengniu (2319.HK), raising the target price to 20.1 Hong Kong dollars. The report indicates that there are signs of stabilization in raw milk prices, especially as the decline is narrowing, combined with the hope of a turnaround in dairy consumption. Among them, Yili (600887.SH), one of the leading A-share listed companies, is estimated to continue to improve profits this quarter and next year. The bank also pointed out that with the stabilization of raw milk prices, there is potential for non-operating costs of Mengniu to rebound. Once it recovers, it could continue until the third quarter of next year, potentially boosting Mengniu's net income by 0.55 billion yuan. Based on the latest business situation, Lyon has increased Mengniu's net profit for 2026 by 4%, reaffirming its 'outperform industry' rating, raising the target price by 3.6% to 20.1 Hong Kong dollars from 19.4 Hong Kong dollars.