HK Stock Market Move | WL DELICIOUS (09985) rose more than 3%, management expects steady growth in konjac products this year with flavor innovation opening up growth opportunities.

WL DELICIOUS (09985) rose by more than 3%, as of the end of the article, it rose by 2.71%, to 12.5 Hong Kong dollars, with a turnover of 23.3728 million Hong Kong dollars. On the news front, a research report from Goldman Sachs pointed out that during the Goldman Sachs Asia Pacific Consumer Enterprise Day, the bank communicated with the management of WL DELICIOUS. The management emphasized the guidance that the revenue for the fiscal year 2025 is expected to grow by more than 15% annually, with a net profit margin between 18% to 20%. They also forecast that this year, konjac products can achieve steady growth, while seasoning instant noodle products are expected to recover growth through the introduction of innovative products and channel expansion. Industrial Securities pointed out that konjac products have high plasticity, good taste, and are naturally suitable for carrying diverse flavors, opening up growth space for taste innovation. Konjac itself has a light taste and can fully absorb flavor, making the marginal cost of taste iteration low and the marginal return considerable. The growth space of konjac depends on innovation rather than industry cycles. In terms of costs, the cost of konjac powder surged in 2024, and it remained high in the first half of 2025, causing the gross profit margin of vegetable products to decrease by 6% year-on-year. Stimulated by price increases, upstream farmers have increased their cultivation enthusiasm, and the planting area has started to expand. With the gradual release of new production capacity in 2025, it is expected that 2026 will usher in a downward cycle of konjac powder costs.