HK Stock Market Move | XIAO NOODLES (02408) rose nearly 4%, with an expected highest year-on-year profit growth of 89.5% in 2025.

XIAO NOODLES (02408) rose by nearly 4%, as of the time of writing, it increased by 3.94% to 5.01 Hong Kong dollars, with a turnover of 1.8036 million Hong Kong dollars. On the news front, XIAO NOODLES announced that it is expected to achieve an annual profit of approximately 100 million to 115 million yuan for the year ending December 31, 2025, an increase of about 64.7% to 89.5% year-on-year; adjusted net profit (non-IFRS measure) is expected to be around 125 million to 140 million yuan, an increase of about 95.6% to 119.1% year-on-year. The improvement in profitability is mainly due to the expansion of the direct-operated and franchised restaurant network, with the total number of restaurants increasing from 360 as of December 31, 2024, to 503 as of December 31, 2025; restaurants gradually expanding from existing locations in city centers to surrounding areas with lower rental costs but higher profit margins; higher operating profit margins in Hong Kong Special Administrative Region restaurants, with profit contributions increasing as the number of stores grows; and further dilution of headquarters costs.