Fufeng Group (00546) fell nearly 4%. As of press time, it fell 3.6% to HKD 4.29 with a turnover of HKD 28.2599 million.
According to the Zhixiang Finance APP, Fufeng Group (00546) fell nearly 4%. As of press time, it fell 3.6% to HKD 4.29 with a turnover of HKD 28.2599 million.
Due to the impact of strong supply and weak demand, the price of MSG in the market fluctuated downward in the first half of this year. According to Zhuochuang Information, the average price of 40/50/60 mesh MSG in large packaging of major MSG companies from January to June 2024 was 7899.1 yuan/ton, a decrease of 15.4% year-on-year from 9332.2 yuan/ton last year. The average price of major MSG companies on June 30 was 7650 yuan/ton, a decrease of 7.6% from the beginning of the year at 8275 yuan/ton.
Fufeng Group recently issued a profit warning, expecting the net profit for the six months ending on June 30, 2024 to decrease by CNY 450 million to CNY 600 million compared to the same period last year's CNY 1.5 billion. The expected decline is due to the decrease in sales prices of its main products, which led to a decrease in gross profit and net profit. It is understood that the company is the world's largest MSG manufacturer, and the financial report shows that MSG's revenue in 2023 was approximately CNY 10.338 billion, accounting for 36.9% of its total revenue.