not vested
Mengniu surges 9pc despite profit warningby Eurus Yiu
Shares of China Mengniu Dairy (2319) surged 9 percent despite posting a profit warning for the first half of this year.
The share price peaked at HK$31.7, up 8.56 percent and the largest increase in the past three years.
It ended the day at HK$30.8, up 5.48 percent for the day even though the company said expected a drop of 45 to 60 percent year on year in net profit given a surge in costs during the first quarter this year, including additional expenses for epidemic prevention and control, accelerating sales efforts and cash and supply donations during the pandemic.
The company expects that its revenue for the first six months this year will record growth compared a year ago.
The company said it has increased their promotional efforts to help its distribution channels reduce inventory and accelerated the resumption of normal sales through e-commerce, O2O home delivery and close cooperation with fresh food e-commerce platforms to tackle challenges brought about by the pandemic.
Revenue in April and May recovered and recorded double-digit growth compared with the same period in 2019, the Chinese dairy giant said.
Citi issued a report saying that Mengniu's net profit and sales in the first half of the year were better than expected and maintained its "buy" rating for Mengniu.
Source: The Standard
https://www.thestandard.com.hk/section- ... it-warning
It's all about "how much you made when you were right" & "how little you lost when you were wrong"