HK Stock Market Move | Bama Tea (06980) surged over 4%, with its stock price rising more than 50% in the past month, and profitability significantly improved in the first half of the year.

BAMA TEA (06980) rose over 4%, with its stock price accumulating more than 50% increase over the past month. As of the time of this report, it rose by 4.27%, reaching 33.7 HKD, with a trading volume of 4.45 million HKD. In terms of news, in the first half of this year, BAMA TEA achieved revenue of 1.4015 billion yuan, a year-on-year increase of 31.8%; the company's net profit attributable to shareholders was 198 million yuan, a year-on-year increase of 65.3%. At the same time, the company declared a mid-term dividend of 1.2 yuan per share, totaling approximately 100 million yuan (before tax). Specifically, tea products are the company's main source of revenue, with income from this segment growing by 34.5% compared to the same period last year, marking a significant increase, especially in the tea combination packages, Oolong tea, and black tea. Kaisource Securities pointed out that the company's gross profit margin in the first half of the year was 54.6%, a slight decrease of 0.7 percentage points year-on-year, mainly due to increased transportation and storage costs. However, thanks to economies of scale and refined management, the expense ratio has significantly optimized, with sales/administrative expense ratios decreasing by 2.9 and 1.5 percentage points year-on-year, respectively. Additionally, the sales revenue from high-gross-margin self-produced products increased by 43.0% year-on-year, with the self-production rate rising from 56.1% to 60.8%, continuously optimizing the product structure. As a result of these comprehensive influences, the company's net profit margin attributable to shareholders significantly improved to 14.1%, enhancing its profitability.