Quanfeng Holdings (02285) fell by more than 11%. As of press release, it was down 11.2% to HK$18.56, with a turnover of HK$3.558 million.
The Zhitong Finance App learned that Quanfeng Holdings (02285) fell by more than 11%. As of press release, it fell 11.2% to HK$18.56, with a turnover of HK$3.558 million.
According to the news, Quanfeng Holdings' revenue in 2023 was about US$1,375 million, a year-on-year decrease of 30.9%; gross profit was about US$387 million, a year-on-year decrease of 35.9%; and the loss attributable to equity shareholders of the company was US$37.137 million, changing from profit to loss year-on-year. Fangzheng Securities pointed out that the company's performance was under short-term pressure in 2023, mainly due to the decline in revenue due to the adoption of more conservative inventory policies by major customers; continued investment in research, product development, and channel expansion; accounting for inventory impairment provisions of about US$47.06 million; and the impact of joint company losses on the company's profit side was about US$18.34 million.
CICC said that the company's terminal sales are good, and the decline in revenue is clearly affected by channel withdrawals. The bank expects demand from the OPE industry to remain weak in the first half of 2024, and the inventory removal is expected to be completed in the 2nd quarter of 2024. Looking back, since OPE demand is still weak, we still need to observe the advent of the inventory replenishment cycle. According to the Yamato Research Report, the investment rating of Quanfeng Holdings was downgraded from “superior to the market” to “holding”, and the profit forecast for 2024 to 2025 was lowered by 40% to 48%, mainly due to the high operating expenses forecast for the period.