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<Research>CLSA: MENGNIU DAIRY Tumbles 6%+ Last Fri on Liquid Milk Sales Decline News; Investor Reaction Overdone
The share price of MENGNIU DAIRY (02319.HK) tumbled by more than 6% last Friday (June 5), apparently due to channel checks by a broker indicating that its liquid milk sales volume ...
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<Research>CLSA: MENGNIU DAIRY Tumbles 6%+ Last Fri on Liquid Milk Sales Decline News; Investor Reaction Overdone
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The share price of MENGNIU DAIRY (02319.HK)  0.000 (0.000%)    Short selling $74.51M; Ratio 18.964%   tumbled by more than 6% last Friday (June 5), apparently due to channel checks by a broker indicating that its liquid milk sales volume in May declined by a low-single-digit YoY, CLSA said in its report.

The information has not yet been verified, but even if confirmed, the broker believes the short-term fluctuation may be affected by a high base last year. The high base was attributable to due to the ex-factory price cut for basic Deluxe and a late Dragon boat festival in 2026.

Related News BofAS: Irrational Sell-off in MENGNIU DAIRY (02319.HK) Creates Attractive Buy Opportunity
The broker believes the market reaction is overdone. From a medium-term perspective, multiple factors indicate that demand for liquid milk is improving, including rising prices of externally sourced raw milk, a more positive attitude among distributors toward the industry, and resilient sales performance.

The broker maintained its TP at HKD21.1 and rated the stock High Conviction Outperform.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-11 16:25.)

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