Mengniu Dairy spat 5% but Goldman Sachs still praises fundamental outlook

In the combination of state-owned enterprises and foreign capital strength of new shareholders and the latest financing measures inspired by the fall yesterday, Mengniu Dairy, the stock price this morning, a significant dip, now fell 5.07% to 18.34 Hong Kong dollars, 6.62 million shares.　　Goldman Sachs issued a report saying it lowered its rating from buying to neutral, but raised its target price from HK $19.2 to HK $20, a premium of 9% per cent. Goldman Sachs alleges that Mengniu's dairy industry has surged 83% since February 2 (when its rating was raised to buy), while the MSCI China index rose 50% in the same period;　　But Goldman Sachs said it remained bullish on Mengniu's fundamentals as sales continued to recover strongly. Goldman Sachs believes that Mengniu's alliance with Cofco, in the long term, is beneficial to Mengniu, but may have limited impact on earnings in the near future, referring to the absence of changes in the Mengniu management team after the deal is completed, and it is expected that COFCO will not be involved in the day-to-day operation of Mengniu.