HK Stock Market Move | HUABAO INTL (00336) surged more than 11% in the afternoon. Institutions pointed out that exploding beads and HNB films overseas orders are expected to quickly increase.

HUABAO INTL (00336) rose more than 11% in the afternoon, up 8.31% at the time of writing, at 4.43 Hong Kong dollars, with a turnover of 40.2911 million Hong Kong dollars. On the news front, HUABAO INTL announced its annual performance, with a group turnover of 3.485 billion yuan, a year-on-year increase of 3.30%; gross profit of 1.423 billion yuan, a year-on-year decrease of 1.27%. Guolian Minsheng Securities previously released a research report stating that, affected by the "independently controllable" policy of China Tobacco, the company's domestic tobacco flavor business continues to shrink, but this negative factor has been fully anticipated. The bank pointed out that the company's forward-looking overseas production capacity construction has entered a harvest stage: the tobacco raw material business represented by beads and HNB sheets is becoming a new growth engine, with overseas sales of this sector expected to increase significantly year-on-year in the first half of 2025, driving overall revenue up against the trend. At the same time, the expansion trend of domestic non-tobacco business continues, reducing dependence on major customers (subsidiary Huabao Flavours & Fragrances is expected to turn losses into profits by 2025). Looking ahead to 2026, the impact of the decline in domestic orders is expected to gradually weaken; overseas orders for beads and HNB sheets are expected to increase rapidly, driving high growth in revenue and profits.