HK Stock Market Move | TINGYI (00322) rose more than 5% with institutions predicting that the company's net profit growth rate last year outperformed expectations.

TINGYI (00322) rose more than 5%, as of the time of publication, it has risen by 5.11% to 11.52 Hong Kong dollars, with a turnover of 66.8011 million Hong Kong dollars. UBS International stated that it is expected that the gross profit margin of Master Kong in the second half of last year will increase by 1.8 percentage points to 32.2%, benefiting from the increase in average selling prices of products and favorable raw material costs, especially sugar and flour. The bank expects the advertising expenditure ratio to increase by 0.2 percentage points to regain market share, with a net profit growth of 17% in the second half of last year, sales growth of 0.4%, implying a full-year net profit growth of 16%, outperforming the 10% to 15% growth guidance. Goldman Sachs previously pointed out that Master Kong's fourth-quarter revenue performance last year will be better than the third quarter of last year, with carbonated drinks/instant noodle sales showing positive growth compared to the same period last year; due to the seasonally and year-on-year decrease in flour prices in the fourth quarter, raw material costs have a positive impact on profit margins, offsetting the impact of rising palm oil prices. The bank cited Master Kong management as saying that last year's sales may be affected by price increases (instant noodles prices were raised from October last year), but estimate the pure profit growth target from last year (10% to 15%) has upward potential.