China Mengniu Dairy [2319.HK; ADD; TP: HK$53.90] - Takeaways from Mengniu’s brand day

■ We participated in Mengniu’s brand day in Beijing. Mengniu is the sole dairy and ice

cream products provider for Universal Studio Beijing.

■ We expect Mengniu to continue achieve strong revenue growth in 3Q21F, due to

resilient dairy demand and a successful mix upgrade.

■ The raw milk price is expected to continue to rise in 2H21F, but Mengniu will mitigate

this risk through selling price increases and better control of expenses.

■ Reiterate Add with unchanged DCF-based TP of HK$53.9.