Soochow Securities: Divergence in dairy and beverage sectors intensifies; leading dairy enterprises will benefit from improved supply landscape

Soochow Securities released a research report stating that since July 2026, driven by seasonal factors such as heat stress, the alfalfa harvesting and storage season, and the peak demand season around the two holidays, raw milk prices have risen modestly and mildly from the bottom. As raw milk prices continue to rise moderately going forward, leading dairy enterprises will benefit from the improvement in the supply landscape, reflected in the recovery of selling prices and optimization of expense spending, while the profitability of associated farms will also improve. Revenue growth in the third quarter was under pressure across multiple categories including beverages, snacks, condiments, and baijiu, as reflected in the financial statements of listed companies; in addition, extreme weather also had an impact on beverage sales.