HK Stock Market Move | In early trading, WL DELICIOUS(09985) rose by over 7% to set a new high, doubling its stock price for the year. Vegetable-based products open up a second growth curve.

WL DELICIOUS (09985) rose by over 7% in morning trading, reaching a high of 15.3 Hong Kong dollars, continuing to set new record highs. The stock price has doubled since the beginning of the year. As of the time of writing, it has risen by 4.94% to 14.86 Hong Kong dollars, with a trading volume of 34.6191 million Hong Kong dollars. In terms of news, WL DELICIOUS recently released its performance for the year 2024, with the group generating revenue of 6.266 billion Chinese yuan from customer contracts, an increase of 28.63% year-on-year. The company's net profit attributable to owners was 1.069 billion yuan, an increase of 21.37% year-on-year, with earnings per share of 0.46 yuan. They plan to distribute a final dividend of 0.11 yuan per share and a special dividend of 0.18 yuan per share. According to the financial report, revenue from Wei Long's spicy strips (flavored noodle products) increased by 4.6% to 2.667 billion yuan for the year, maintaining a stable market position; revenue from vegetable products increased by 59.1% to 3.371 billion yuan, with the proportion of total revenue rising to 53.8%. Huaxi believes that the company will distribute dividends three times this year, with a cumulative payout ratio of 99%, reflecting the company's commitment to shareholder returns. Looking at the company's dividend history, they have consistently maintained a basic dividend ratio of around 60% since 23, while also distributing a certain percentage of special dividends. In terms of the company's asset-liability structure, they have ample cash reserves, low liabilities, and good profitability, providing a basis for sustained high dividends. From an operational perspective, products such as konjac as represented by the company's vegetable products are experiencing rapid growth, and are expected to maintain high potential in FY25. The bank believes that konjac ingredients have low calories, are healthier, have a wider audience, and have great development potential, making it worthy of long-term attention.