HK Stock Market Move | FUFENG GROUP (00546) fell nearly 7% as the decline in main product prices and foreign exchange losses weighed on its performance, with net profit for the first half year dropping by 80% year-on-year.

FUFENG GROUP (00546) fell nearly 7%, and as of the time of writing, it was down 6.8%, priced at HKD 4.865, with a trading volume of HKD 29.6791 million. In terms of news, FUFENG GROUP announced its mid-year results for 2026, reporting revenue of 13.795 billion yuan, a year-on-year decrease of 1.2%; profit attributable to shareholders was 347 million yuan, down 80.66% year-on-year; earnings per share were 13.82 cents, with a proposed interim dividend of 6.4 Hong Kong cents per share. The significant year-on-year decline in profit was mainly due to lower prices of products such as monosodium glutamate, threonine, lysine, and xanthan gum, which led to a drop in gross profit margin. Additionally, the net foreign exchange losses for the first half of the year increased by 592 million yuan year-on-year to 518 million yuan. China International Capital Corporation (CICC) believes that the prices of products like monosodium glutamate and amino acids are currently at historical lows. The current market price for monosodium glutamate is 6,900 yuan/ton, which is at the 18th percentile since 2012. With downstream inventory demand warming up, prices are expected to gradually rise. Currently, the prices of threonine and lysine are also at historical lows, and the firm believes that there is limited room for further price declines.