HK Stock Market Move | BLUE MOON GROUP (06993) up nearly 5% again, with stock price rising over 20% in the past week. CICC optimistic about the company's continued improvement in profitability.

BLUE MOON GROUP (06993) rose nearly 5%, with the stock price rising by over 20% in the past week. As of the time of writing, it rose by 4.75% to 3.75 Hong Kong dollars, with a turnover of 7.3718 million Hong Kong dollars. On the news front, Blue Moon previously announced that it is expected to achieve revenue of 8.5 billion Hong Kong dollars in 2024, an increase of 16%; the gross profit margin will remain stable at around 61%. CICC pointed out that the company's announcement forecasted a gross profit margin of 61% in 2024, corresponding to gross profit margins of 59% and 62% for the first half of 2024 and the second half of 2024 respectively. The bank believes that the main reason is the promotion of the Supreme Concentrated Laundry Detergent driving the optimization of product structure. On the expense side, the company relies on efficient promotion of new concentrated laundry detergents through platforms like Douyin, achieving sales conversion while educating consumers on laundry. It is expected that the company's efficiency in the second half of 2024 may see a significant improvement on a month-on-month basis, leading to a high reduction in sales expense ratio. With the continued promotion of the Supreme Concentrated Laundry Detergent education and the improvement of new e-commerce operations, the company's future profitability is expected to continue to improve.