HK Stock Market Move | LEE'S PHARM (00950) surged over 20% after a profit warning, expecting a mid-term net profit attributable to shareholders of approximately HK$85 million to HK$95 million.

LEE'S PHARM (00950) surged over 20% after the profit announcement, and as of the time of writing, it has increased by 20.54% to HKD 1.35, with a trading volume of HKD 6.6222 million. On August 26, LEE'S PHARM released an announcement forecasting that the group expects to achieve an unaudited attributable net profit of approximately HKD 85 million to HKD 95 million for the six months ending June 30, 2026, compared to about HKD 67.2 million for the six months ending June 30, 2025. The announcement stated that the group anticipates an improvement in its interim performance, mainly due to (including) the growth in the group's revenue; the overall gross margin of the group has improved, attributed to a more favorable product mix, with a significant proportion of higher-margin specialty and imported products, as well as continuous improvements in manufacturing efficiency at the groups various production bases. The positive impact generated by these two factors is sufficient to offset the increases in research and development expenses, selling and distribution expenses, and administrative expenses (including costs associated with the groups newly consolidated U.S. business) during the reporting period.