HK Stock Market Move | WL DELICIOUS(09985) soared more than 25% as it officially joins the Stock Connect from today. The company's valuation and liquidity may receive a boost as a result.

WL DELICIOUS (09985) surged over 25%, as of press time, up 25.05% to HK$11.98, with a turnover of HK$1.57 billion. On the news side, according to announcements from the Shanghai Stock Exchange and Shenzhen Stock Exchange, WL DELICIOUS has officially been included in the list of Hong Kong Stock Connect, which takes effect today. Founder believes that as the Hang Seng Index adjusts, the company will soon re-enter the market, and liquidity is expected to improve. As a leading company in spicy snacks, the company's valuation is expected to benefit from the inclusion. Guotai Junan also stated that the company's vegetable product sales volume, high growth, and low valuation are expected to significantly improve liquidity after inclusion. CICC released a research report stating that considering the increase in boxed products and improved display of WL DELICIOUS, the group's revenue for 2024-2025 has been raised by 2%/7% to RMB 62/74.9 billion. In 2024, the group's product "Konjac Snack" has significantly improved cost-effectiveness, and CICC predicts that the product is expected to maintain rapid growth and forecast its revenue to exceed RMB 2.5 billion in 2024. The cost of seaweed products is expected to decline year-on-year, and it is expected that the revenue of seaweed products in 2024-2025 will rise to RMB 400-600 million.