Mengniu Dairy plunged more than 20% in Hong Kong stocks yesterday

Abstract: Mengniu official website by the Black Mengniu Meishan factory products were detected in the capital market caused by the fluctuations of the volatility of yesterday further revealed. Mengniu Dairy (2319.HK) yesterday recorded a slump of more than 20% in Hong Kong stocks, at a price below HK $20, offering raw milk for Mengniu

Mengniu Official website was hacked

Mengniu Meishan Factory products were detected in the capital market fluctuations caused by the volatility yesterday further emerged. Mengniu Dairy (2319.HK) yesterday recorded a slump of more than 20% in Hong Kong stocks, once below the 20 Hong Kong dollar price, while the mengniu supply of raw milk suppliers of modern animal husbandry (1117.HK) also was "sitting", plunged more than 13%. Not only that, 11 o'clock last evening Xu its official website (www.mengniu.com.cn) was exposed by netizens have been hacker changes to the home page, as of the time has not yet recovered.

Yesterday, a number of foreign brokerage companies to split the view, both maintain ratings have been downgraded. Citi's estimate is the most pessimistic, with sales likely to suffer for months.

Last night was black Mengniu official website background All Black, the page has 14 lines of words, of which 13 lines of white color, content to condemn Mengniu dairy irresponsible, the last act of red, the content is "from the Angry Sit group (simple Analysys Infosec team) Original SST Group ( Simple Safety team) ".

The Web page shows, "We are a family, and you are a family member." Do you have a conscience? " There is even a strong word for "this is a disgrace to our nation".

Yesterday, Mengniu Dairy's share price surged 23.95%, closing at HK $20. It fell to HK $19.46, its lowest in 52 weeks, and amounted to HK $1.56 billion a day. Mengniu yesterday issued a notice in the HKEx that the problem product batches in the test has not been out of the library, no problem products out of the market. At present, in the Chinese market, including Hong Kong, the sale of all products are qualified products.

As a supplier of milk sources for Mengniu in Meishan, modern animal husbandry fell by 15% in the morning and the volume reached its highest in 3 months. In the end, modern animal husbandry closed down by 13.41% in the afternoon, closing at HK $1.55.

The reporter learned that modern animal husbandry does have a source of milk for the Meishan factory. Modern animal husbandry yesterday issued a public announcement that it was unaware of any cause of abnormal stock price fluctuations.

Securities：

Raw milk supply highly dispersed is the Bane

Yesterday, Goldman Sachs issued a report that the mainland raw milk supply highly dispersed, coupled with the nature of the commercialization of raw milk, the dairy industry also has a food safety risk, which is the root cause of the Mengniu incident, temporarily maintain a "neutral" rating.

But another brokerage, BofA Merrill Lynch, downgraded Mengniu's dairy to a "neutral" rating. The bank said it notes that Mengniu has been involved in food safety incidents three times since 2009, although the negative effects on share prices have lasted less than 1 months each. But the bank has lowered its target price from HK $30 to HK $28.

According to Citi's report, Mengniu's Meishan plant has a capacity of 600 tonnes a day to process dairy products, accounting for 3% of the group's capacity. According to the past experience of traditional food safety accidents, sales are often affected by several months.

The bank pointed out that Mengniu 70% of raw milk is from modern animal husbandry and its dairy breeding center, and believe that the incident contaminated products are related to the milk station. Citigroup believes that after understanding with Mengniu management, the latter stressed that this is a "separate incident", to give Mengniu "buy" rating, the target price of HK $33.