Changes in Hong Kong stocks | Xiying-W (00625) fell nearly 6% in the first half of the year, adjusted net profit, cut back, and tariff headwinds and logistics cost fluctuations are likely to continue

The Zhitong Finance App learned that Xiyin-W (00625) fell nearly 6% in the intraday period. As of press release, it was down 4.12% to HK$33.08, with a turnover of HK$36.21,800.

According to news, in the first half of this year, Xiying achieved net revenue of 20.034 billion US dollars, an increase of only 1% over the previous year; adjusted net profit was 499 million US dollars, down 55.6% from the previous year. Looking at the second quarter alone, net revenue was US$11.082 billion, up 0.9% year on year, and adjusted net profit was US$228 million, down 66.6% year on year. The company expects the external environment to remain uncertain in the second half of this year, and tariff headwinds and fluctuations in logistics costs may continue. Despite this, the fourth quarter is still the most important promotion window, which is expected to drive a significant increase in order volume.

Jefferies believes that Xiying's revenue for the first half of the year was in line with expectations, but the regional mix was poor, and profit margins were the main focus. It believes that the market's consensus forecast for 2026-2027 still has room to decline, lowering the target price from HK$26 to HK$23, and maintaining a “outperforming market” rating. The bank anticipates that the market will initially lower the 2026-2027 profit forecast by about 15-20% and 10-15%, respectively. After the results for the third quarter of 2026 confirm the weakening of European business, it will usher in a second round of cuts.