HK Stock Market Move | PAGODA GP(02411) rose more than 23% in early trading, planning to raise over HK$300 million through a rights issue. The company's strategic adjustment has shown initial results.

PAGODA GP (02411) soared more than 23% in early trading, rising 23.45% to HK$1.79 by the time of publication, with a trading volume of HK$10.76 million. In terms of news, PAGODA GP announced a plan to issue 279.5 million H shares at a price of HK$1.17 per share. The shares sold will account for approximately 16.1% of the total number of H shares after the expansion, and approximately 15.4% of the total number of shares. It is expected that the net proceeds from the sale will be approximately HK$325 million. The allocation of the net proceeds is as follows: approximately 61.5% will be used to pay trade payables, approximately 30.8% will be used to repay bank loans, and approximately 7.7% will be used for general operating expenses and administrative expenses. It is worth noting that recent brokerage research reports have shown that the channel adjustment of Pagoda GP is nearing completion, with single-store traffic and gross margin rates increasing simultaneously. The growth in single-store traffic confirms the success of activities like "Good Fruit Reward" in stimulating consumer demand and increasing brand loyalty. The rise in gross margin rates indicates that the driving effect of traffic products on gross margin products is gradually being released, signaling that the company's efforts in product structure optimization and supply chain efficiency are beginning to pay off.