HK Stock Market Move | CRYSTAL INTL (02232) rose by more than 5% in the morning session, expanding its business to major European clients in the second half of the year. Institutions point out three major advantages that help the company mitigate the impact of tariffs.

CRYSTAL INTL (02232) rose over 5% in early trading, reaching 2.9% by the time of publication, at HK$7.1 with a turnover of HK$52.68 million. In terms of news, recently, CRYSTAL INTL released its mid-term performance for 2025, with revenue of $1.229 billion, a year-on-year growth of 12.4%; the company's attributable profit was $98.265 million, a year-on-year increase of 17%; basic earnings per share were $0.344, and it plans to distribute an interim dividend of $0.163 per share. Huaxi stated that considering the impact of tariffs, the company will prioritize seizing growth opportunities in the European and Asian markets. In the second half of 2025, the company will establish a new partnership with a leading European brand customer; at the same time, the company plans to set up new production bases in the surrounding areas of Europe, with capital expenditures of $60 million in the first half of 2025, a year-on-year increase of 15%. Huayuan Securities pointed out that recently, with the disturbances caused by the U.S. tariff policy and one-third of the company's revenue coming from the U.S., CRYSTAL INTL's business is facing tariff pressures. However, the company has three core advantages to mitigate the impact of tariffs: FOB revenue structure, where the company calculates based on offshore prices, meaning all production costs such as international freight, destination port fees, and import tariffs are borne by customers; pricing advantage for brand customers, as the retail prices of the company's core high-quality brand customer products differ significantly from offshore prices, resulting in a relatively low impact of tariffs on such products; overall resilience in the industry, despite being impacted by external factors such as tariffs, the growth of brand customers remains relatively robust.