HK Stock Market Move | WEIGAO GROUP (01066) plunges more than 14% after performance, with a 22% decline in annual net profit. Institutions point out that profit is lower than market expectations.

WEIGAO GROUP (01066) plummeted more than 14% after the performance announcement, as of press time, falling 13.76% to HK$3.95, with a turnover of HK$81.09 million. On the news front, WEIGAO GROUP released its annual performance report, with annual revenue of approximately RMB 13.389 billion, a year-on-year increase of 2.3%; the company's attributable net profit was approximately RMB 1.612 billion, a year-on-year decrease of 22.0%. CICC pointed out that WEIGAO GROUP's annual revenue met market expectations, but net profit was below market expectations. The decline in profit was mainly attributed to price reduction in the general medical equipment sector due to centralized procurement and increased expenses from building the sales system domestically and internationally. The bank stated that due to the impact of centralized procurement exceeding expectations, it lowered its core net profit forecast for 2026/27. However, considering the company's short-term procurement risks have bottomed out, it remains optimistic about the company's leading position in the domestic business and the expansion of its international business.