Changes in Hong Kong stocks | Gaoxin Retail (06808) rose more than 4% in the intraday period, UBS expects the company's recurring net profit this year to exceed market expectations

The Zhitong Finance App learned that Gaoxin Retail (06808) rose more than 4% in the intraday period. As of press release, it had risen 3.68% to HK$1.97, with a turnover of HK$12.63 million.

UBS released a research report saying that excluding one-time drag factors, Gaoxin Retail's recurring net profit for fiscal year 2025 is expected to exceed market expectations. Store transformation and product portfolio adjustments in FY2026 will be accelerated compared to FY2025, thereby driving net profit margin expansion, and may exceed the 1.5% long-term net profit margin target previously set by management. The market has yet to fully reflect this. The bank expects the company's same-store sales growth in the second half of fiscal year 2025 to accelerate compared to the 0.3% increase in the first half of the year, benefiting from increased product price competitiveness, leading to an improvement in offline customer traffic. The forecast for the 2025 fiscal year will be between 450 million and 540 million yuan in net profit.

Notably, on February 28, Gaoxin Retail issued an announcement announcing a series of board member changes. The announcement mentioned that Huang Mingduan will resign as chairman of the board of directors, and that Qin Yuehong and Han Liu have resigned as non-executive directors. Huayu Energy will be appointed to positions such as Chairman of the Board of Directors. According to reports, Gaoxin Retail and the offender ParagonShineLimited jointly announced that the settlement of the sales agreement was completed on February 27, 2025.