Hong Kong Stock Alert | EASTROC Plummets Nearly 4% to Record Low as Q2 Growth Slows and PET Packaging Cost Worries Mount

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EASTROC (09980) dropped nearly 4% during trading, touching an intraday low of HK$95.8, marking an all-time low since its listing. At the time of writing, the stock was down 3.46% at HK$96.2, with turnover reaching HK$64.095 million.

According to market news, in the first half of this year, EASTROC reported revenue of RMB 12.436 billion, a year-on-year increase of 15.87%; net profit attributable to parent company shareholders reached RMB 2.867 billion, up 20.72% year-on-year. Looking at the second quarter alone, the company's revenue was RMB 6.555 billion, representing an 11.3% increase year-on-year, while net profit was RMB 1.609 billion, up 15.4% year-on-year. In contrast, during the first quarter of this year, both revenue and net profit for EASTROC grew by over 20% year-on-year.

BOC International noted that considering factors such as changes in product mix and rising PET packaging material costs in the second half of the year that may impact the profit structure, the firm estimates the company's revenue for 2026-2028 will be RMB 24.18 billion, RMB 27.88 billion, and RMB 31.71 billion respectively, representing year-on-year growth rates of +15.8%, +15.3%, and +13.8%. Net profit attributable to parent is projected at RMB 5.12 billion, RMB 5.69 billion, and RMB 6.48 billion respectively, with year-on-year growth rates of +16.0%, +11.0%, and +14.0%.

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