HK Stock Market Move | U-PRESID CHINA (00220) rises by more than 3% again, with last year's food and beverage business gross profit margin increasing. The company's revenue growth target for this year is not less than 6%.

U-PRESID CHINA (00220) rose by more than 3%, reaching 3.28% to HK$9.13 at the time of writing, with a transaction volume of 60.66 million Hong Kong dollars. In terms of news, U-PRESID CHINA recently announced its annual financial report, with a turnover of 30.332 billion yuan, a year-on-year increase of 6.1%; and a net profit of 1.849 billion yuan, a year-on-year increase of 10.9%. HSBC stated that the gross profit margin of the unified beverage and instant noodle business has increased, sales of sugar-free tea and other beverages have remained stable, and instant noodle sales have maintained steady growth. The company is optimistic that through product upscale and differentiation strategies, it can continue to drive profit margin improvement in the long run. China International Bank issued a research report stating that U-PRESID CHINA's revenue and net profit increased by 6.1% and 10.9% respectively compared to the previous year, meeting expectations. The beverage business increased by 8.2% year-on-year, while the food business increased by 1.5% year-on-year. The overall gross profit margin increased by two percentage points to 32.5% annually, with the gross profit margins of the food and beverage businesses at 26.5% and 36.6% respectively. The bank pointed out that the company's revenue target for this year is not less than a 6% year-on-year increase, and in the first two months of this year, both the food and beverage businesses achieved double-digit sales growth with good channel inventory, bringing some surprises to the market. Net profit margin expansion will mainly rely on product portfolio optimization and efficiency improvement.