HK Stock Market Move | CONANT OPTICAL(02276) fell more than 4% in mid-morning trading. The company previously faced tariff pressures. Institutions believe that a tax refund or increased profits may be possible.

CONANT OPTICAL (02276) fell by more than 4% during trading, closing down 2.88% at HK$59, with a trading volume of HK$36.3797 million. On the news front, the Supreme Court of the United States ruled that the tariffs imposed by the Trump administration under the IEEPA were illegal. Guotai Haitong pointed out that this ruling cancelled the specific tariffs (20% for fentanyl and equivalent tariffs), but the government later added 122 tariffs (15%). The bank believes that the impact of the 122 tariffs is limited due to legal constraints and expiration dates, which has alleviated the tariff pressure faced by companies like CONANT OPTICAL. It is understood that CONANT OPTICAL's revenue from the United States in 2024 accounts for about 13%, with the effective tax rate previously close to 40%, including the 20% illegal tariffs. Guotai Haitong stated that according to the ruling, there may be potential refunds for the tariffs already paid, which could directly increase net profit in 2026. This is a positive news for CONANT OPTICAL, as the refunds could significantly improve their financial performance.