The Zhitong Finance App learned that Mingchuang Premium (09896) fell by more than 3%, hitting a new low of HK$17.75 since January 2023. The stock price was already falling back during the year. As of press release, it decreased by 3.47% to HK$17.83, with a turnover of HK$102 million.
According to news, in the first half of this year, Mingchuang Premium achieved revenue of 11.5 billion yuan, an increase of 22.4% year on year, and profit of 957 million yuan, an increase of only 5.6% year on year; adjusted net profit after excluding exchange gains and losses, was 1,222 billion yuan, down 1.7% year on year. Looking at the second quarter of a single quarter, the company's revenue increased 17.0% year on year to 5.81 billion yuan, and adjusted net profit excluding exchange gains and losses fell 10.5% to 590 million yuan. In addition to the impact of exchange losses, the company's overseas business performance also weakened, and expenses increased dramatically after rapid expansion, causing a clear drag on profits.
Mingchuang Premium predicts that the adjusted net profit for the whole year will drop by a high number of units year on year, and the adjusted operating profit margin will drop 3-4 percentage points year on year. Bank of China International predicts that results in the second half of 2026 will continue to be pressured, and the company will enter the business adjustment stage, so an inflection point in operation may not occur until 2027 at the earliest. The bank believes that the investment logic of rapid global expansion into profitable growth will take longer to materialize.