China agriculture

Research evidence excerpt

China agriculture

positive on broiler profitability for

FY26 given a tighter supply outlook due to lower industry parent stock inventory (link).

• We downgraded Tingyi to Neutral earlier this month. We see rising margin headwinds from

both competition and cost inflation risks from PET related costs (link).

• We maintain our Neutral rating on Uni-President China and believe it could face input cost

inflation from 2Q as higher-cost raw materials feed through (link).

• Vitasoy (Outperform) stated it has implemented cost-saving initiatives and expects

improved production efficiency to mitigate packaging material cost inflation (link).

• We maintain a Neutral rating on Hengan due to concerns of rising input costs and the

sustainability of hygiene product growth (link).

• WMP prices have softened since June 2025. Want Want (Neutral) has locked in WMP prices

for the next 6-9 months and expects GPM to improve from 1H FY27 (link).

• Yili (Outperform) management expects a raw milk price rebound in 2H26 on improving

demand (link) (link). We believe both Yili and Mengniu (Outperform) should see a business

recovery in FY26 on a more rationalised upstream supply and competitive environment

(link).

• Haitian (Outperform) saw the strong GPM momentum continue into 1Q26, benefiting from

its low-cost raw materials inventories (link).

• Yihai (Outperform) management believes conditions remain manageable this year, with

spice prices stable and only modest inflationary pressure for beef, which is not expected to

materially impact margins (link) (link).

• Chongqing Brewery (Outperform) indicated aluminium has been hedged since 2025, keeping

cost pressures manageable, while it continues to monitor price trends (link) (link).