Changes in Hong Kong stocks | Weilong Meimei (09985) rose nearly 9%, company costs are close to inflection point, institutions are optimistic that konjac will increase and open up space

The Zhitong Finance App learned that Weilong Mei (09985) rose nearly 9%. As of press release, it had risen 8.81% to HK$12.1, with a turnover of HK$87.751 million.

According to the news, Aijian Securities pointed out that as a leader in spicy snacks, the company uses its leading market position in the spicy strip and konjac category to build competitive barriers in the three dimensions of brand, product, and channel: deep binding between brands and categories forms consumer priority perception, the large single product model brings the profitability of leading peers, and a nationwide distribution network supports the rapid delivery of new products.

The bank believes that the company's cost inflection point is near, and profit flexibility is expected to be released centrally. Stimulated by rising prices, upstream farmers' enthusiasm for planting has increased, and the planting area has begun to expand. With the gradual release of new production capacity in 2025, it is expected that 2026 will usher in a downward cycle of konjac powder costs; breakthroughs in high-end channels, and dual optimization of channel structure and product perception. In July, boletus konjac successfully entered Sam's Club, marking the leap of the company's products from mass distribution channels to high-end membership channels; the industry pattern is becoming concentrated, and leading competition barriers are being solidified at an accelerated pace. The konjac snack food industry has maintained rapid growth in recent years and is currently still in a stage of rapid expansion. However, the tight supply of upstream raw materials and limited midstream production capacity means that the industry will eventually enter a period of integration.