HK Stock Market Move | HERBS GROUP (02593) falls more than 10%, breaking the IPO price by 26%. The total market value is less than 400 million Hong Kong dollars.

HERBS GROUP (02593) fell by more than 10% again, hitting a low of 2.75 Hong Kong dollars, a decline of 26% from its IPO price. The stock closed up more than 10% on the day of its listing on December 19, but has since continued to decline for four consecutive trading days, with a total drop of over 30%. As of the time of writing, it is down 10.13% at 2.75 Hong Kong dollars, with a trading volume of 8.53 million Hong Kong dollars, and a total market value evaporated to 367 million Hong Kong dollars. It is reported that HERBS GROUP is a diversified health and beauty product supplier rooted in Hong Kong for over twenty years, using a multi-channel sales model, focusing on the development, sales, and marketing of its own brand products. Currently, HERBS GROUP operates eight own brands. For the years 2021 to 2023, HERBS GROUP's revenue is estimated to be approximately 189 million Hong Kong dollars, 208 million Hong Kong dollars, and 251 million Hong Kong dollars respectively; with net profit estimated to be approximately 23.18 million Hong Kong dollars, 27.97 million Hong Kong dollars, and 39.50 million Hong Kong dollars respectively. The gross profit margin is estimated to be 71.99%, 71.91%, and 73.82% respectively. As for its products, HERBS GROUP's product portfolio includes 50 health products, 21 beauty and skincare products, and two pet health products. Among these, health products account for as much as 90% of the revenue. It is worth mentioning that HERBS GROUP's predecessor was New England International, founded in 1999 by TVB Hong Kong star Gregory Charles Rivers and his sister, along with an independent third party (who later exited in October 2000).