Shares of Stella Holdings (01836) tumbled more than 9% following the release of its interim results, with the stock last trading down 9.54% at HK$12.80, on a turnover of HK$14.49 million.

According to the company's 2026 interim report, revenue for the first half reached US$787 million, marking a 1.5% increase year-on-year. However, profit attributable to owners of the parent fell 18.6% to US$64.04 million, with basic earnings per share of US$0.078. An interim dividend of HK$0.42 per share has been proposed, representing a payout ratio of approximately 70%.

The company attributed the decline in net profit and net margin to reduced gross profit and operating profit during the period. Additionally, interest income decreased due to lower interest rates, while net cash position weakened as a result of increased capital expenditure linked to the commissioning and capacity ramp-up of three new factories.