WL DELICIOUS

Weilong Delicious closed at HK$8.46, down 2.54% from the previous close, though intraday remained steady with morning session rallying from HK$8.24 to HK$8.39 and afternoon continuing the ascent. Recent weakness reflects profit-taking; Morgan Stanley has lowered its price target to HK$11.7. Latest earnings remain robust: Q4 2025 EPS HK$0.1601 surged 58% year-over-year, net profit HK$385m rose 62% YoY, operating revenue HK$2,080m climbed 18% YoY. The stock trades 41% below its 52-week high of HK$14.4, yet has rebounded 23% from the 52-week low of HK$6.86, standing above the 20-day and 60-day moving averages. Valuation remains moderate at 13x P/E and 2.54x P/B, with a 4.65% dividend yield. With 6,150 employees across seasoned noodle snacks, vegetable products, and soy-based items, the company's expansion continues, though market concerns remain on growth sustainability against the HK$20.56 billion market cap.

Weilong Delicious advanced 1.76% to HKD 8.68 today, continuing its rebound from the 52-week low of HKD 6.86 set in late June amid broader strength in Hong Kong consumer stocks, gaining 26.53% since that trough. Recent catalysts include Q4 2025 EPS of HKD 0.1601, up 58.28% year-over-year, and net profit of HKD 385 million, surging 61.75% year-over-year with a sustained net margin of 18.5%. The company has conducted multiple share buybacks in recent weeks; Morgan Stanley maintained an overweight rating with a target price of HKD 11.7. Current valuation appears reasonable with a P/E of 13.37x and P/B of 2.61x, with the stock trading above its 20-day and 60-day moving averages. However, year-to-date the stock has declined 21.94%, and it remains 39.72% below the August 2025 high of HKD 14.4, suggesting market caution on its growth outlook remains.

Weilong Delicious rose 0.76% to HKD 7.94 today, buoyed by broad strength across Hong Kong's new consumer sector with the morning session reaching an intraday high of HKD 8.17. The latest quarterly results display robust momentum: Q4 revenue climbed to HKD 2.08 billion with 17.51% YoY growth, while net profit surged 61.75% YoY to reach HKD 385 million, translating to EPS growth of 58% to HKD 0.1601, with ROE sustained near 19%. Despite these earnings gains, the stock remains under pressure, down 28.6% year-to-date and trading 44.86% below its 52-week peak of HKD 14.4. Valuation metrics appear relatively attractive with a forward P/E of just 12.23 and P/B of 2.39 against the demonstrated earnings growth rate. The company maintains active shareholder returns through dividends and buybacks; however, the stock is currently consolidating between its 20-day and 60-day moving averages, suggesting near-term range-trading conditions before broader sentiment recalibrates.

Weilong Delicious advanced 2.34% to HKD 7.88 today, briefly testing intraday highs near HKD 7.95, bolstered by robust earnings momentum and positive dividend management signals. Q4 2025 results demonstrated strong operational performance—earnings per share climbed to HKD 0.1601, representing a 58.28% year-over-year surge, while net profit jumped 61.75% YoY on revenue growth of 17.51%, maintaining a solid 18.5% net margin. Management's proactive stance reinforced investor confidence; the company recently convened a board meeting to review interim results and dividend arrangements, having executed a series of share repurchases between HKD 7.15-7.24 per share in recent weeks. Morgan Stanley maintains an Overweight recommendation with a target price of HKD 11.7, suggesting approximately 48% appreciation potential from current levels. Nevertheless, the stock remains well below prior highs—down 29.14% year-to-date and trading 45.28% below its 52-week peak of HKD 14.4, signaling persistent caution within the consumer discretionary sector. Current valuation stands at 12.14x PE, with shares trading modestly above the 20-day moving average but below the 60-day line, reflecting underlying market uncertainty.

Weilong Delicious closed down 0.78% at HKD 7.70 today, with morning gains to HKD 7.74 offset by afternoon profit-taking. Price-wise, the stock has retreated 30.76% year-to-date from HKD 11.12 and stands 46.53% below its 52-week high of HKD 14.4, though it has rebounded 12.24% from the recent 52-week low of HKD 6.86. Fundamentals remain robust: Q4 2025 revenue reached HKD 2.08 billion, up 17.51% year-over-year, with net profit of HKD 385 million rising 61.75%, driving strong earnings momentum. The company is preparing a board meeting to review interim results and dividend plans, with markets awaiting details. Valuation-wise, the stock trades at a PE of just 11.86x, while Morgan Stanley and UBS issued target prices of HKD 11.7 and HKD 15.5 respectively, both above current levels, though the stock appears to be consolidating its year-to-date decline.