00341 Overview

Interim Results Announcement: CAFE DE CORAL H reported its interim results for the period ending September 30, 2025, with revenue of HK$4.036 billion, a decrease of 5.4% year-over-year.

Profit Decline: The company recorded a net profit of HK$46.73 million, reflecting a significant drop of 67.6% compared to the previous year, resulting in an earnings per share (EPS) of HK$8.2 cents.

Dividend Declaration: An interim dividend per share (DPS) of HK$10 cents was declared, down from HK$15 cents in the same period last year.

Short Selling Activity: The stock experienced short selling of $911.60K, with a short selling ratio of 25.487%.

Profit Warning: CAFE DE CORAL H issued a profit warning, projecting a 65-70% decline in net profit for the first half of the fiscal year ending September.

Stock Performance: The stock opened down 1.9% and fell to HKD5.96, marking its lowest point since the SARS outbreak in 2003, before closing at HKD6.05, down 3.51%.

EBITDA Forecast: The company anticipates a 30% year-over-year drop in adjusted EBITDA for the same period, attributed to decreased gross profit and a fair value loss on investment properties.

Trading Activity: Short selling reached $6.00 million with a ratio of 27.414%, and trading volume surged to 3.6273 million shares, totaling HKD21.9389 million.

Stock Performance: CAFE DE CORAL H (00341.HK) saw a slight increase in stock price by 0.040 (+0.642%) with short selling amounting to $690.40K and a ratio of 15.569%.

Earnings Forecast: The Group anticipates a decline of approximately 30% in adjusted EBITDA for the six months ending 30 September 2025, compared to HK$344 million for the same period in 2024.

Profit Decline: Profit attributable to shareholders is expected to decrease by 65-70%, down from HK$144 million in the previous period.

Financial Outlook: The significant declines in both adjusted EBITDA and profit indicate challenging financial conditions for the Group moving forward.

Adjustments to Southbound Trading: The Shanghai and Shenzhen Stock Exchanges have updated the list of securities eligible for Southbound Trading, effective today, due to changes in the Hang Seng Composite Index constituents.

New Additions and Removals: Notable additions include CHINA FOODS and COUNTRY GARDEN, while removals feature CITYCHAMP and SIPAI HEALTH, with various short selling data provided for each stock.

Hang Seng Index Adjustments: The Hang Seng Index has added CHINA TELECOM, JD LOGISTICS, and POP MART to its constituents, while the HSCEI has included POP MART but removed J&T EXPRESS-W.

Short Selling Data: Significant short selling activity was noted for POP MART ($245.68M) and J&T EXPRESS-W ($44.69M), with varying ratios indicating market sentiment.

Southbound Stock Connect Changes: 20 stocks are set to be added to Southbound Stock Connect, including CHINA FOODS and CAOCAO INC, while 19 stocks will be removed.

Market Impact Concerns: Analysts express concerns about the potential positive effects of these adjustments on certain companies like CHINA TELECOM and JD LOGISTICS, while noting negative impacts on others such as LENOVO GROUP and ASMPT.