Changes in Hong Kong stocks | IFBH (06603) fell more than 11% due to supply chain disruptions compounded by weak demand, net profit is expected to drop 75% year on year in the first half of the year

The Zhitong Finance App learned that IFBH (06603) fell by more than 11%, hitting a record low of HK$5.355. As of press release, it decreased by 9.9% to HK$5.55, with a turnover of HK$5.5094 million.

According to the news, IFBH issued a profit warning. It is estimated that in the first half of 2026, the company's net profit will plummet 65% to 75% year on year, and revenue will drop 40% to 50% year on year. The Board believes that the expected decrease in net profit during the reporting period is due to disruptions in the global supply chain due to heightened geopolitical tension, resulting in shortages in the supply of polyethylene terephthalate (PET), other packaging materials and coconut water, as well as an increase in the procurement costs of coconut water and packaging materials. The reduction in the supply of raw materials limited the Group's production schedule and product supply, while rising procurement costs affected the Group's gross profit margin, which in turn led to a decline in sales and profitability.

In terms of revenue, in addition to supply shortages limiting the supply of products to distributors, the board of directors also admits that in the context of weak overall consumer sentiment in the coconut water category, the distribution channel restructuring and optimization of the sub-brand Innococo has not yet returned to the 2024 operating level, further dragging down overall sales.