HK Stock Market Move | MAN WAH HLDGS (01999) fell more than 6%, prompting institutions to point out that tariffs may cause some disturbance to the company's North American gross profit margin in the short term.

MAN WAH HLDGS (01999) fell more than 6%, dropping 6.29% to 4.62 Hong Kong dollars as of the time of writing, with a trading volume of 63.0224 million Hong Kong dollars. On the news front, the US threatened to impose an additional 10% tariff on Chinese products entering the US starting from March 4th, citing fentanyl as the reason. In February of this year, the US already imposed a 10% tariff on Chinese imports. Earlier reports from Lyon pointed out that considering the risks of US tariffs and weaker prospects for housing sales in the US and mainland China, the target price-to-earnings ratio has been reduced from 8 times to 7.5 times, with an expected dividend yield of 7%. Western previously expressed concerns that the tariffs would impact the company's North American business. The bank believes that the company's dual factory layout in Vietnam and Mexico has given it rich experience in dealing with tariffs and overseas manufacturing, and its long-term customer base is relatively stable, limiting the impact of trade frictions on the company's business. However, the bank also noted that trade tariffs could cause some short-term disruption to the company's North American gross margin, with the bank predicting a gross margin of 40.59%, 40%, and 40% for the company's 2025-2027 fiscal years.