03:25 AM EDT, 03/30/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our target price of HKD18 (up from HKD16) is 8.0x 2026 EV/EBITDA (five-year average: 13x), reflecting risks from cautious consumer sentiment and strong competition amid soft raw milk prices. We see long-term revenue growth potential for Mengniu, given China's low dairy product consumption, but cultural factors may constrain the pace of dairy adoption in China, in our view. This will likely cap Mengniu's revenue growth at low single digits, with support from higher penetration into lower-tier markets, B2B partnerships, and overseas expansion. While China's pro-birth policies may have limited success in lifting child births, they should still help slow the decline and support demand for infant milk formula, in our view. Meanwhile, we project net margin to improve to around 6% in 2026-2027 (2025: 1.9% including impairments and increased tax charges), aided by sales channel optimizations, supply chain improvements, and digitalization. We keep our 2026 EPS forecast at CNY1.28 and set 2027's at CNY1.41.