HK Stock Market Move | WL DELICIOUS (09985) rises more than 6%, the market for konjac products has a vast potential for growth, the company's profitability is expected to continue to be unleashed.

WL DELICIOUS (09985) rose more than 6%, as of press time, it rose 6.52% to HK$17.64 with a turnover of HK$1.46 billion. In terms of news, WL DELICIOUS obtained revenue of RMB 6.266 billion from customer contracts in 2024, an increase of 28.63% year-on-year; the company's attributable profit was RMB 1.069 billion, an increase of 21.37% year-on-year. Huaxin Securities pointed out that Wei Long, as a leading enterprise in spicy snack foods, is actively strengthening its brand building. As the original creator of konjac snacks, it continues to enjoy the benefits of category development. Currently, there is still penetration space for its products in the market. With the rapid development of high-energy channels such as snack stores and membership-based supermarkets, the external environment continues to improve. In addition, the company is strengthening its layout of automated production lines, continuously improving production capacity utilization, and profitability is expected to continue to be released. According to CITIC SEC calculations, the terminal industry size of konjac is RMB 26.9 billion, with the konjac snack/konjac vegetarian snack industry size at RMB 18.3 billion/RMB 8.5 billion. Wei Long's breakthrough with konjac snacks has driven the konjac snack industry to grow at a CAGR of 20% over the past 10 years, and Yanzhi konjac sukiyaki entering the market is accelerating the growth of the konjac snack industry. The industry believes that the domestic konjac snack market size has the potential for 1-2 times incremental growth in the future.