Changes in Hong Kong stocks | Huahong Hongli (01347) fell more than 4% Goldman Sachs indicated that third-quarter revenue guidance fell short of expectations, but gross margin guidance was higher than expected

The Zhitong Finance App learned that Huahong Hongli (01347) fell by more than 4%. As of press release, it fell 3.86% to HK$134.5, with a turnover of HK$2.72 billion.

According to the news, Huahong Hongli's sales revenue for the second quarter reached a record high of 717.5 million US dollars, an increase of 26.8% over the previous year, higher than the estimated 702.7 million US dollars. The gross margin was 16.5%, up 5.6 percentage points year over year, higher than the estimated 14.9%. The profit attributable to the owner of the parent company was US$38.6 million, lower than the estimated US$39.4 million.

Goldman Sachs said that Huahong Hongli's revenue for the third quarter is expected to increase by 7% to 9% on a quarterly basis, with gross margin between 16% and 18%. Compared with 16.5% in the second quarter, this shows that gross margin is still improving as production capacity continues to expand. The median revenue guide was 11% and 6% lower than the bank's and market expectations, respectively, and the performance fell short of expectations; however, the gross margin guidance was 16% to 18%, higher than the bank's forecast of 15.3% and the market's 16.5% forecast.