HK Stock Market Move | CH MODERN D(01117) rose more than 10% in the morning trading session, with annual revenue exceeding 12.6 billion yuan. Institutions pointed out that the company's performance is expected to show significant elasticity in the next two years.

CH MODERN D (01117) rose more than 10% in early trading, reaching 8.51% as of the time of publication, with a price of 1.53 Hong Kong dollars and a turnover of 3476.72 million Hong Kong dollars. On the news front, CH MODERN D had previously released its full-year performance, achieving sales revenue of 12.601 billion yuan, with gross profit margin increasing against the trend by 1.4 percentage points to 27.4%, and cash EBITDA growing by 2.6% year-on-year to 3.063 billion yuan. Due to changes in fair value of biological assets and the impact of industry cycles, the company's owners suffered a loss of 1.129 billion yuan. FIRST SHANGHAI pointed out that with the one-time impairment factor digested, the company is expected to be in a better position in 2026. Benefiting from the income elasticity brought about by the rise in meat and milk prices, coupled with expectations of valuation repair of biological assets, the company's future performance has a significant potential for growth in the next two years, and is expected to experience a "Davis double hit". It is predicted that the company's revenue will steadily increase, and net profit attributable to shareholders is expected to achieve a substantial growth turnaround. Considering the company's position as a leading player in the industry, the current stock price is in the bottom range of the cycle, with a high safety margin and upward potential.