China's Blue Moon hits record low on weak earnings outlook

Blue Moon group

18/01/2024 03:09

** Shares of Blue Moon Group Holdings Ltd  6993.HK  fall 5%
to HK$1.72, their lowest since debut in December 2020
    ** Stock of the Chinese household cleaning products
developer on course for the biggest one-day pct decline since
Oct 31, extending losses for a third straight session, if
current trend holds 
    ** Co estimates its 2023 net profit to decrease by not less
than HK$230 mln ($29.41 mln), or down 37.6%, compared with
2022's net profit of HK$611.4 mln amid an increase in sales and
marketing expenditure 
    ** Citi maintains "sell" rating on Blue Moon amid downside
risk in the firm's 2H23E profit due from business priority of
maintaining market share amid intensified industry competition
    ** "We expect its selling expenses to mount significantly
YoY with YoY more promotional activities and YoY higher selling
expenses to sales ratio in 2H23E," Citi says
    ** Hang Seng Commerce & Industry Index  .HSNC  and Hang Seng
Consumption Index  .HSCGSI  both climb 0.4%, while Hang Seng
Index  .HSI  gains 0.3%
    ** Stock down 17.6% YTD 
   ($1 = 7.8194 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))