Changes in Hong Kong stocks | Little Vegetable Garden (00999) rose by more than 5%, the price-for-volume+return to dine-in strategy has paid off, and shareholder feedback has increased

The Zhitong Finance App learned that Little Vegetable Garden (00999) rose by more than 5%. As of press release, it had risen 5.76% to HK$8.535, with a turnover of HK$34.2063 million.

According to the news, Little Vegetable Garden achieved revenue of 2,903 billion yuan in the first half of this year, an increase of 7% over the previous year; however, the profit side was under pressure in the short term, and net profit to mother was 290 million yuan, down 24.2% year on year. The decline in profits is mainly due to the company actively adjusting prices to improve cost performance, leading to an increase in raw material and employee costs as a share of revenue. Furthermore, the board of directors resolved to pay an interim dividend of $0.2139 per share, totaling approximately $250 million, with a dividend ratio of 86.3%.

Financial reports show that in the first half of the year, dine-in revenue from small vegetable gardens increased 18.1% year on year, and the share of overall revenue rose from 60.7% to 67.0%; takeout revenue decreased 10.6% year on year, and the share fell from 39.0% to 32.6% year on year. The turnover rate increased from 3.1 times per day to 3.5 times per day. Huatai Securities believes that in the first half of the year, the company actively promoted membership system construction and channel structure adjustments. The current strategy of exchanging price for volume+ returning to dine-in has paid off. It is expected that the strategy will continue to advance and profit will improve as the base is digested.