HK Stock Market Move | XIAOCAIYUAN (00999) once rose over 9%, with its share price hitting a more than 7-month high. Shenwan Hongyuan Group gave a target price of HK$10.

XIAOCAIYUAN (00999) opened higher and moved up today, once rising over 9% to a high of HK$8.75, a new high since early February this year. The stock recorded two block trades totaling 14.59 million shares before the market open this morning at HK$8.5 per share, 6.1% above the previous closing price, involving HK$124 million. As of press time, it was up 8.55% at HK$8.695, with turnover of HK$147 million. On the news front, in the first half of this year, XIAOCAIYUAN achieved revenue of RMB 2.903 billion, up 7% year on year; net profit attributable to shareholders was RMB 290 million, down 24.2% year on year, mainly due to the company's proactive price adjustments to enhance value for money, which led to an increase in the proportion of raw material and employee costs to revenue. The board resolved to declare an interim dividend of RMB 0.2139 per share, totaling approximately RMB 250 million, with a payout ratio as high as 86.3%. A Shenwan Hongyuan Group research report pointed out that it initiated coverage on XIAOCAIYUAN with a "Buy" rating and a target price of HK$10. The bank is bullish on XIAOCAIYUAN's standardized operating capability, the competitive barrier of its self-built full cold-chain supply chain, and the organizational vitality brought by its deep employee incentive mechanism. Industrial said the company maintains a strong dividend payout, and its profit margin is expected to stabilize and improve quarter on quarter in the second half, and suggested continued observation of same-store sales progress.