Uni-President stock rallies despite earnings dive and cash call
Stock gains 4pc even after noodle maker reports 38.2pc profit fall and taps market for HK$447m
What happens when a company announces a fundraising on the back of a big drop in profit?
In the case of noodle and beverage producer Uni-President China Holdings - a rising share price.
The company on Friday posted first-half results in which it disclosed a drop in gross margin and profit, and a stunning 38.2 per cent dive in attributable profit to 355.4 million yuan (HK$447.4 million). Sales increased a slender 1.3 per cent.
On Sunday, the firm announced plans for a 1 billion yuan bond for listing on Taiwan's GreTai market.
It was a lot of information for investors to process but in the event, the impact was positive.
The company's share price yesterday rose 4.09 per cent to HK$6.61.
Analysts said the earnings results were in line with expectations and that Uni-President's core profitability was intact.