HK Stock Market Move | H&H INTL HLDG(01112) rose more than 9% during trading hours, deleveraging progress steadily advancing, and financial expenses are expected to decrease year by year.

H&H International Holdings (01112) rose more than 9% during trading, rising 6.19% to 8.92 Hong Kong dollars by the time of publication, with a turnover of 5.6729 million Hong Kong dollars. On the news front, H&H International Holdings previously released its interim results, with revenue of 6.692 billion yuan, a decrease of 4.1% year-on-year; and the attributable net profit of the parent company was 306 million yuan, a decrease of 49.7% year-on-year. It is reported that the decrease in revenue was mainly due to the decline in sales of infant formula milk powder after transitioning to the new "national standard" series. Zhongjin pointed out that the growth rate of the ANC business in the second half of the year may slow down, mainly due to the high base in the second half of last year; the BNC business may still face certain challenges in the second half of the year, while the PNC business is expected to maintain the growth trend in the first half of the year. North American business is expected to remain stable, while the Chinese business is still in the process of adjustment. In terms of deleveraging progress, the net leverage ratio in the first half of the year decreased from 3.42x in the first half of last year to 3.36x, and it is expected that this ratio may decrease to around 3x by the end of the year, with the possibility of falling below 2.0x within the next 18-24 months. As the deleveraging progresses steadily, we expect the company's financial expenses to decrease year by year starting next year.