HK Stock Market Move | WANT WANT CHINA (00151) falls nearly 10% again, with costs and expenses reducing profit margins, and annual net profit decreasing by over 11% year-on-year.

WANT WANT CHINA (00151) fell by nearly 10% again, as of the time of writing, falling by 8.85% to HKD 3.09, with a turnover of HKD 78.0877 million. On the news front, WANT WANT CHINA previously announced its annual performance as of the end of March, with a total revenue of 24.401 billion yuan, a year-on-year increase of 3.8%; net profit attributable to shareholders of the parent company was 3.837 billion yuan, a year-on-year decrease of 11.5%. Profit pressure mainly comes from the cost and expense side. On the cost side, Want Want Group's unit costs for imported full-fat milk powder and palm oil increased by double digits and low double digits year-on-year respectively; on the expense side, Want Want Group's overall operating expenses increased by 14.2% year-on-year. Zhongjin released a research report, stating that Want Want is facing challenges in terms of revenue in the fiscal year 2026, and its profit margin is expected to remain stable. Against a backdrop of weak consumer demand, the company is expected to face pressure on first-quarter revenue and fiscal year 2026 revenue. On the profit side, the company has locked in the cost of bulk powder for the next 6 to 9 months, and it is expected that a drop in bulk powder price in the first half of fiscal year 2026 will drive an improvement in the company's gross profit margin. The impact of rising PET costs is limited, combined with improved efficiency in cost and workforce, the company's profit margin in fiscal year 2026 is expected to remain relatively stable.