HK Stock Market Move | TEXHONG INTL GP(02678) is now up nearly 7%. Order volumes and prices are expected to continue to recover and improve in the second half of the year. The company started its global expansion early on.

TEXHONG INTL GP (02678) is now up nearly 7%, as of the time of writing, it is up 6.8% at HK$3.77, with a turnover of HK$47.485 million. On the news front, TEXHONG INTL GP previously released its interim performance, with a 4.2% year-on-year growth in revenue to HK$11.24 billion in the first half of the year, mainly driven by the growth of its yarn business. Net profit attributable to shareholders was HK$270 million, turning around from a loss of HK$750 million in the same period last year. Gross profit margin increased significantly by 10.8 percentage points to 13.2% year-on-year, and by 3.1 percentage points quarter-on-quarter, mainly benefiting from the recovery in production capacity utilization and the completion of high-cost inventory pressure from last year. Guosen released a research report stating that TEXHONG INTL GP is a global leading cotton yarn producer. The company's yarn business has shown steady growth in the first half of the year, with improving gross profit margins in various businesses due to the recovery in production capacity utilization and cost optimization. In the second half of the year, the volume and price of orders are expected to continue to recover. In the medium to long term, the trend of local supply chains is inevitable. The company's early globalization layout, with a local supply chain and fast response advantages, as well as leading scale advantages, are expected to continue to gain market share.