HK Stock Market Move | COFCO JOYCOME (01610) rises by more than 4% again, achieving a year-on-year turnaround from loss to profit in net profit before fair value adjustment of biological assets.

COFCO JOYCOME (01610) rose more than 4%, as of the time of publication, it rose by 4.79% to HK$1.97, with a turnover of HK$86.0399 million. In terms of news, COFCO JOYCOME released its interim results. After the fair value adjustment of biological assets, the Group achieved operating income of RMB 8.963 billion, an increase of 19.77% year-on-year. The net profit attributable to the owners of the company was RMB 317 million, an increase of 0.2% year-on-year. Before the fair value adjustment of biological assets, the net profit attributable to the owners of the company was RMB 198 million, turning from loss to profit year-on-year. This was mainly due to the stable production rhythm and cost improvement of the main pig farming business, as well as a significant reduction in losses in the fresh food business. After the fair value adjustment of biological assets, the net profit attributable to the owners of the company was RMB 317 million. The fair value adjustment of biological assets is based on the pig prices as of the end of June 2025. CICC released a research report stating that the pig farming business is improving production efficiency, reducing costs, and returning to a healthy growth track. In terms of costs, the company is promoting cost reduction with the participation of all elements, all processes, and all staff, establishing specific improvement tasks, and enhancing cost competitiveness. In terms of output, the company's liquid biological assets were RMB 2.79 billion at the end of 1H25, an increase of 16.9% from the end of 2024. In addition, the company is increasing efforts to explore a light-asset farming model, and the bank judges that it is expected to support an output of 5-6 million heads per year by 2025. The fresh pork brand leading strategy is showing results. Currently, the company is focusing on improving the quality of fresh products, expanding sales channels such as supermarkets and e-commerce, and conducting precise communication with consumer groups. The bank believes that profit contribution is expected to gradually increase.