STELLA HOLDINGS (01836) saw its stock price surge by 9.87% in Monday afternoon trading, with shares reaching HK$17.12 and trading volume hitting HK$89.07 million. The significant uptick comes on the heels of the company's recently released interim results and a positive research report from Daiwa.
Despite reporting a 14.48% year-on-year decline in profit attributable to owners, reaching US$78.633 million, STELLA HOLDINGS managed to increase its revenue slightly by 0.66% to US$775 million. The company has proposed an interim dividend of 52 HK cents per share. Daiwa's analysis suggests that after adjusting for a high base effect from early deliveries in the previous year, the company's interim net profit actually grew by approximately 2% year-on-year.
Investors appear particularly enthused by Daiwa's projection of an attractive 10% dividend yield for the next two years, based on the company's annual additional profit distribution of US$60 million. Furthermore, market anticipation is building for STELLA HOLDINGS' upcoming disclosure of its three-year net profit growth plan, expected with the third-quarter results announcement. Daiwa forecasts a high single-digit compound annual growth rate for 2026-2028, adding to the positive sentiment surrounding the stock.
Comments