Shares in Inner Mongolia Yili Industrial Group Co and China Mengniu Dairy Co have soared to all-time highs as the companies hunt aggressively to build up their milk supply chains through foreign acquisitions.

With China's dairy demand forecast to grow 37 percent to $76 billion in five years - overtaking the United States to become the world's biggest dairy market - the bull run may have further to go.

Mengniu's stock, traded in Hong Kong, was raised to a buy by Daiwa Capital Markets Securities analyst Anson Chan on Oct 16. It began this year at HK$15 and ended at HK$21.65 on Friday.