HK Stock Market Move | U-PRESID CHINA (00220) rises more than 4%, expected to announce annual performance tomorrow. Institutions predict its core profit for the last quarter will increase by 7% year-on-year.

U-PRESID CHINA (00220) rose more than 4%, reaching 3.86% at the time of publication, closing at HK$8.34 with a trading volume of HK$27.6598 million. On the news front, U-PRESID CHINA will hold a board meeting on March 5 (this Wednesday) to approve the annual performance disclosure of the company and its subsidiaries up to December 31, 2024, and consider recommending dividend distribution (if any). China International Bank research report indicates that the company's core net profit for the last quarter is expected to increase by 7% year on year. Overall, the financial reports for the second half of last year should be consistent with previous guidance, with sales of beverages and food expected to increase by 10% and 3% respectively year on year, and the operating profit margin is expected to increase by 0.6 percentage points to 7% year on year. China Gold, on the other hand, predicts that the company's revenue will increase by 6.2% year on year in 2024, with a net profit of 1.85 billion yuan, an 11.1% year-on-year increase, and non-GAAP net profit (excluding one-time gains in the first quarter of 2023) is expected to increase by 31.2% year on year, corresponding to a net profit of 220 million yuan in the fourth quarter, an 8% year-on-year increase, which is basically consistent with market expectations. In the medium to long term, the bank believes that the good prospects of the beverage industry are expected to benefit from sustained growth in performance. Additionally, considering the relatively stable industry structure and increased profit-seeking incentives from competitors, it is believed that the profit margin of the company is also expected to improve year on year.