Zitong Financial APP learned that Letong Group (06988) fell more than 25 per cent in early trading and has fallen more than 55 per cent since the beginning of August. As of press time, it fell 21.28% to HK $0.37, with a turnover of HK $4.675 million.
On the news, Lexing Group previously announced interim results, with a profit of HK $2.148 billion during the period, an increase of 57.18% over the same period last year, a loss of HK $195 million attributable to shareholders, and a profit of HK $75.479 million for shareholders in the same period last year. During the period, gross profit margin was 9.86%, down 3.9ppts from the same period last year, mainly because the share of overseas e-commerce business continued to rise, while the gross profit margin of this business was low.
Bank of China Securities said that 2023-24 is the key period for the company's overseas e-commerce business to obtain the market, and the gross profit margin is expected to continue to increase with the diversification of categories, and marketing channel subsidies gradually decline with the expansion of the distribution network. It is estimated that the annual net profit of homing in 2023-24-25 will be-HK $4.39 million, maintaining a "buy" rating of HK $0.96 million.