The Zhitong Finance App learned that Quanfeng Holdings (02285) fell by more than 4%. As of press release, it fell 4.37% to HK$16.18, with a turnover of HK$1.775,700.
According to the news, Quanfeng Holdings will release its 2023 results on March 27 (that is, next Wednesday). The company previously issued a profit warning that it expects a loss of about 35 million US dollars to 40 million US dollars in 2023, and net profit of about 139 million US dollars last year. Changes in performance are mainly due to reduced orders, rigid expenses, inventory impairment, and associated company losses due to customer dismissal.
Zheshang Securities believes that in the short term, inventory disturbances will gradually subside, and demand will bottom out and pick up, and orders are expected to resume. According to the 2023 annual reports of the core North American supermarket channels Walmart, Home Depot, and Lowe's, the inventory of the three companies decreased by -3%/-15.7%/-8.8%, respectively, over the same period last year, and the North American supermarket channel may have come to an end. CICC said that due to continued weakness in downstream demand, the bank cut the company's net profit for 2023/2024 by 132% to -US$38 million/ 81% to US$0.3 billion, and lowered the company's target price by 30% to HK$25.