Understanding the Market | Dairy stocks opened higher in the morning as fertility policy subsidies are expected to gradually take effect, benefiting the demand for infant formula
Dairy stocks opened higher in the morning. As of the time of writing, Mengniu Dairy rose 5.05% to HKD 20.8; CH MODERN D rose 3.39% to HKD 1.22; CHINA FEIHE rose 3.35% to HKD 7.09; H&H International Holdings rose 1.66% to HKD 9.8. In terms of news, the General Office of the CPC Central Committee and the General Office of the State Council issued the "Special Action Plan to Boost Consumption." The plan proposes to strengthen support for childbirth and parenting. It also studies the establishment of a childcare subsidy system. Additionally, on March 13, the Health Commission of Hohhot released local childbirth subsidy details, with the maximum subsidy for a single child reaching 100,000 yuan, along with milk consumption vouchers benefiting YILI and Mengniu Dairy. CITIC Securities pointed out in its research report that if the childbirth policy subsidies are implemented, it is expected to improve the birth population, benefiting the demand for infant formula. At the same time, the number of children aged 0 to 6 is also expected to gradually improve, benefiting the demand for children's cheese. Actively paying attention to the implementation of childbirth policies within the year is expected to enhance the market's expectations and valuation levels for the future fundamentals of infant formula companies and cheese companies
According to the Zhitong Finance APP, dairy stocks opened higher in the morning. As of the time of publication, Mengniu Dairy (02319) rose by 5.05% to HKD 20.8; CH MODERN D (01117) rose by 3.39% to HKD 1.22; CHINA FEIHE (06186) rose by 3.35% to HKD 7.09; H&H International Holdings (01112) rose by 1.66% to HKD 9.8.
In terms of news, the General Office of the Central Committee and the State Council issued the "Special Action Plan to Boost Consumption." The plan proposes to strengthen support for childbirth and parenting. It also studies the establishment of a childcare subsidy system. Additionally, on March 13, the Health Commission of Hohhot released local childbirth subsidy details, with the maximum subsidy for a single child reaching 100,000 yuan, along with milk consumption vouchers benefiting YILI and Mengniu Dairy.
CITIC Securities pointed out in its research report that if the childbirth policy subsidies are implemented, it is expected to improve the birth population, which would benefit the infant formula industry demand. At the same time, the number of children aged 0 to 6 is also expected to gradually improve, benefiting the demand for children's cheese. Actively pay attention to the implementation of childbirth policies within the year, which is expected to enhance market expectations and valuation levels for infant formula companies and cheese companies' future fundamentals