HK Stock Market Move | BLUE MOON GROUP (06993) rises by over 4% with strong support from new e-commerce channels, company's profitability is expected to continue to improve.

Blue Moon Group (06993) rose by over 4%, reaching 4.3% at the time of filing, at 3.15 Hong Kong dollars, with a turnover of 4.7112 million Hong Kong dollars. On the news front, Blue Moon recently released its profit forecast for 2024, expecting revenue to reach 8.5 billion Hong Kong dollars, an increase of 16% from the previous year; and the gross profit margin is expected to remain stable at around 61%. Zhongjin pointed out that new e-commerce channels such as live streaming will support growth. In addition, the optimization of product structure and the efficiency improvement of e-commerce operations will drive a significant reduction in losses in the second half of 2024. The bank predicts that with the continued promotion of the Supreme Concentrated Laundry Detergent category education and the efficiency improvement of new e-commerce operations, the company's future profit ability is expected to continue to improve. The bank maintains an "outperform industry" rating and raises the target price by 55% to 3.4 Hong Kong dollars.