XIAO NOODLES

Guangzhou Xiao Noodles staged a morning rally but gave back some gains in the afternoon, opening at HKD 3.415 and rising to an intraday high of HKD 3.510 before closing at HKD 3.500, up about 2.5% from the previous close. The uptick was driven by its FY26 H1 results showing attributable net profit surged 51.2% to HKD 63.26 million and revenue grew 33.6% to HKD 939.36 million, with a steady net profit margin of 6.73%. However, the operating profit rose only 3.13%, indicating margin compression. The stock remains 42.34% below its 52-week high of HKD 6.07 and down 20.27% year-to-date, trading above the 20-day MA (HKD 3.259) but below the 60-day MA (HKD 3.555). The company's recent share buyback cancellations signal management's support for the stock price.

2408.HK closed slightly up 1.19% at HKD 3.41, recovering from a low of HKD 3.370 to an intraday high of HKD 3.425, forming a bottom-fishing rebound pattern. This was primarily driven by strong FY26 H1 results showing net profit attributable to shareholders up 51.2% to RMB 63.26 million and revenue up 33.6% to RMB 939.36 million, with EPS growing 37.69% YoY. The profit growth was attributed to network expansion and volume-led pricing strategy. Despite the solid fundamentals, the stock trades 43.82% below its 52-week high of HKD 6.07 and below the MA60 of HKD 3.565, with a YTD decline of 22.32%. The current PB of 2.63x and PE of 16.5x reflect the valuation. However, the company has been conducting share buybacks for cancellation, signaling management's confidence.

Guangzhou Xiao Noodles surged in the morning session, with the latest price of HKD 3.445 up 5.84% from the prior close of HKD 3.255. The intraday high of HKD 3.435 remains 43.25% below the 52-week high of HKD 6.07, but has reclaimed the 20-day moving average (HKD 3.258). The rally was driven by the company's FY26 H1 results: revenue of HKD 939.36 million (+33.6% YoY), net profit attributable to shareholders of HKD 63.26 million (+51.2% YoY), and EPS of HKD 0.057 (+66.85% YoY), with a net profit margin of 6.99%. Frequent share buybacks recently at HKD 3.05-3.57 per share have provided support. However, the stock is only 14.83% above its 52-week low of HKD 3.0 and remains down 21.53% year-to-date, still below the 60-day moving average (HKD 3.579), suggesting the rebound's sustainability remains to be seen.

Guangzhou Xiao Noodles Catering (2408.HK) staged a low-open rally in the morning session, climbing from an intraday low of HKD 3.150 to HKD 3.320, a gain of 5.4%, on low volume of 5,500 shares. The main driver was solid Q4 2025 earnings: operating revenue surged 52.8% YoY to HKD 511 million, net profit jumped 71.7% to HKD 34.5 million, and EPS rose 66.9% to HKD 0.057. However, the stock's current price of HKD 3.335 remains 45.1% below its 52-week high of HKD 6.07 and below its 60-day MA of HKD 3.593, with a YTD decline of 24.0%, indicating waning appetite for mainland F&B names in Hong Kong, while the company has been conducting share buybacks for cancellation at prices ranging from HKD 3.05 to HKD 3.57.

Guangzhou Xiao Noodles (2408.HK) recorded only one trade in the morning session, opening at HKD 3.325, up 6.2% from the previous close of HKD 3.130, but with zero volume throughout the day, forming a typical price-without-volume pattern. The company has been conducting intensive share buybacks for cancellation, with multiple HKEX filings showing repurchase prices ranging from HKD 3.05 to 3.57, close to the current price. Fundamentally, Q4 2025 revenue surged 52.8% YoY to HKD 511 million, net profit jumped 71.7% YoY to HKD 34.5 million, and net profit margin held at 7%. However, the stock remains 45% below its 52-week high of HKD 6.07 and trades below the MA60 of HKD 3.628, contrasting with the robust earnings. The company has announced a board meeting to review interim results, with the market awaiting further catalysts.