ANJOY FOOD (02648) surged nearly 7% during the session, and as of press time, it was up 4.84% at HK$71.4, with a turnover of HK$46.45 million.

A research report from Caixin Securities noted that based on the Q3 performance of listed companies in the frozen food sector, demand remains in a bottoming-out phase. However, the effectiveness of price cuts and promotions has diminished amid intensified competition, leading to a moderation in price wars. Companies like ANJOY FOOD and Sanquan Food have seen their gross margins stabilize gradually.

Furthermore, as ANJOY FOOD continues to optimize its product and channel structures while improving operational efficiency, its profitability is showing signs of stabilization and recovery.

Huachuang Securities added that recent channel data indicates healthy and rapid growth in October-November despite a high base effect, with sales momentum improving month by month since Q3. Key drivers include: (1) the absence of distributor conference promotions in Q3 this year, keeping channel inventory at manageable levels; (2) contributions from new products, with ANJOY FOOD benefiting from smaller brands exiting the market, leading to significant sales growth and even stockouts for some products; and (3) colder weather boosting seasonal demand for frozen foods.

Given the colder weather this year and the company’s new product launches, current sales trends are positive, with further acceleration likely during the upcoming Lunar New Year peak season.