[ET Net News Agency, 27 January 2021] UBS Global Research lifted its target price for
China Mengniu Dairy (02319) to HK$56 from HK$44 and maintained its "buy" rating.
The research house forecast Mengniu's sales growth to accelerate from -1% (2020) to 15%
(2021), mainly driven by its leading position in high-end UHT milk and consumers' rising
demand for pure milk after COVID-19.
UBS expects its margin to continue to expand, helped by easing competition, mix upgrade,
and operating leverage. It believes Mengniu's investment in branding and high-end products
are bearing fruit and will transform to resilient growth in the next few years. (KL)