HK Stock Market Move | IFBH (06603) fell over 11% as supply chain disruptions combined with weak demand, with net profit expected to drop by as much as 75% year-on-year in the first half of the year.

IFBH (06603) fell over 11%, reaching a new low of HKD 5.355. As of the time of writing, it was down 9.9% at HKD 5.55, with a transaction volume of HKD 5.0594 million. In terms of news, IFBH issued a profit warning, anticipating a year-over-year drop in net profit of 65% to 75% in the first half of 2026, and a revenue decline of 40% to 50%. The board believes that the expected decrease in net profit during the reporting period is due to global supply chain disruptions caused by escalating geopolitical tensions, leading to shortages of polyethylene terephthalate (PET), other packaging materials, and coconut water, as well as rising procurement costs for coconut water and packaging materials. The reduction in raw material supply has restricted the group's production pace and product availability, while rising procurement costs have impacted the group's gross margin, leading to decreased sales and profitability. In terms of revenue, in addition to supply shortages limiting the supply of products to distributors, the board also admitted that, against the backdrop of overall weak consumer sentiment in the coconut water category, the restructuring and optimization of the distribution channels for the sub-brand Innococo has yet to return to operational levels seen in 2024, further dragging down overall sales.