HK Stock Market Move | ZHOU HEI YA(01458) surged 17% in the afternoon. The company expects a year-on-year profit growth of 55.2% to 94.8% in the first half of the year.

ZHOU HEI YA (01458) soared 17% in the afternoon, reaching a 12.61% increase at the time of drafting, with a price of 2.68 Hong Kong dollars and a transaction amount of 125 million Hong Kong dollars. On the news front, ZHOU HEI YA released a profit forecast, expecting a total group revenue of 1.2 billion to 1.24 billion in the first half of the year, a decrease of about 1.5% to 4.7% compared to the same period last year of 1.26 billion; The profit during the period (excluding the share of profits and losses of joint ventures and the impact of income tax) is expected to be 90 million to 113 million, an increase of 55.2% to 94.8% compared to the same period last year of 58 million. The company stated that the profit growth is mainly due to the optimization of the group's store structure, focusing on improving the quality of store operations, and effectively increasing the average sales per store during the reporting period. At the same time, the downward trend in raw material costs has driven an increase in gross profit margins, combined with lean management to optimize the sales expense ratio, comprehensively improving the overall profitability of the group.