Shares of TSE SUI LUEN (00417) have surged more than 9% following the release of a positive profit alert. At the time of writing, the stock is up 9.09%, trading at HK$0.72 with a turnover of HK$1.4273 million.

The company has issued a profit forecast, anticipating a profit of not less than HK$1 billion for the fiscal year ending March 31, 2026. This represents a significant turnaround from the loss of approximately HK$1.98 billion reported for the year ending March 31, 2025.

The expected improvement is primarily attributed to the successful implementation of the group's business transformation strategy. Key factors include an improvement in same-store sales performance and an increased profit contribution from the franchising business in Mainland China.

Furthermore, effective cost optimization strategies have led to a reduction in selling, distribution, and administrative expenses, alongside lower restructuring costs. The company also cited favorable changes in certain global economic factors.

Additionally, a decrease in certain non-cash provisions for impairment related to retail store assets and other assets, made in compliance with applicable accounting standards, has contributed to the positive outlook.