Xinjiang Tianrun Dairy Co Ltd

Tianrun Dairy released its 2026 interim report, with net profit attributable to the parent company of 54.25 million yuan, an increase of 76.11 million yuan compared with the same period last year, turning losses into profits. The company's total operating revenue was 1.45 billion yuan, up 3.93 percent year on year. Net cash inflow from operating activities was 236 million yuan, down 12.24 percent year on year. The latest asset-liability ratio was 52.02 percent, gross margin was 18.27 percent, return on equity was 2.17 percent, and diluted earnings per share was 0.17 yuan.

Dairy stocks surged in unison today, with multiple shares hitting their daily limit during the session. Knight Dairy rose 19.7 percent, while Sunshine Dairy, JuneYao Health, Liziyuan, and Tianrun Dairy all hit the daily limit, with other stocks gaining between 3 and 8 percent. The rally is linked to improved market expectations for dairy companies' future operations. Li Shengli, chief scientist of the National Dairy Industry Technology System, said at the 17th Dairy Industry Conference that a combination of factors—bottoming and rebounding composite milk prices, rising bulk milk prices, and a continued decline in the adult cow inventory—points to a sustained modest year-on-year increase in milk prices in the second half of 2026, marking a turning point for the raw milk sector after an extended downturn. Several institutions have also released research reports anticipating a mild reversal in the raw milk cycle in 2026. Independent dairy analyst Song Liang believes that the previous decline in milk prices led to cheap raw milk flooding the market. As supply and demand rebalance, dairy companies that control milk sources will have stronger bargaining power, potentially improving the landscape of low-price competition.

Tianrun Dairy announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 43 million and 60 million yuan, turning around from a loss in the same period last year. The change in performance is mainly due to a year-on-year reduction in losses from culling cows, a reduction in losses from selling surplus raw milk powder, and an increase in profit from intensified product sales efforts.