The Secret Of Want Want – Revelation

On August 1, I post a short article about the unusual price movement of Want Want. The share price rose steadily throughout the day despite in a very bad Hong Kong market trading day.  It is now three weeks later today.  The price shoots up 7% because of a news stating that Want Want’s profit rises 54%.  The effect seem on the August 1 can be due to the below reasons :

1. The Taiwan Effect. Within the past three weeks, there are many stories about Taiwan e.g. The Taiwan government invites Taiwan company to list in TSE including Want Want, Taiwan business is expect to improve due to improve relationship with the mainland.

2. Insiders could have know about the improve in profit and started buying shares. Three weeks is about the correct timing that it takes for accountant to calculate the report and then announce it.  

《業績解碼》旺旺(0151.HK)上半年毛利率跌至37.2%
8月 27日 星期三 10:20 更新

中國旺旺(0151.HK)(0151.HK – 新聞 – 公司資料)公布，上半年乳品及飲料類產品的毛利率下降，拖累整體毛利率按年減少1.8個百分點至37.2%。

期內銷售總額為7.1億美元，其中米果銷售佔32%，同比上升53.7%至2.3億美元。乳品及飲料佔銷售額約34.4%，由於生產成本增加，毛利率下降5.4個百分點。另外，休閒食品類產品，由於白糖、明膠價格回落，加上產品結構改善，毛利率上升0.4個百分點至44.4%。(da)