Changes in Hong Kong stocks | Oriental Selection (01797) fell by more than 4% in the morning and is expected to increase significantly in both total revenue and profit in FY2026

The Zhitong Finance App learned that Oriental Selection (01797) fell by more than 4% in the morning, and rose more than 3% in early trading after profit. As of press release, it decreased by 2.06% to HK$21.86, with a turnover of HK$257 million.

According to the news, on July 23, Oriental Selection announced that the Group expects to achieve a significant increase in both total revenue and profit for the year ending May 31, 2026 (fiscal year 2026). Total revenue for the 2026 fiscal year is expected to range from RMB 5.6 billion to RMB 5.8 billion, while total revenue for the year ended May 31, 2025 (fiscal year 2025) is RMB 4.4 billion, up approximately 27.3% and 31.8%, respectively. Net profit for fiscal year 2026 is expected to be between RMB 520 million and RMB 550 million, while net profit for fiscal year 2025 is RMB 6 million, up 8566.7% and 9066.7% year over year.

According to a research report released by Citigroup, Oriental Selection's median net profit margin for the 2026 fiscal year reached about 9.4%, a significant increase from 0.1% in fiscal year 2025. This is the first time that the results of the membership platform's business transformation have been reflected in profit data. The momentum for business growth mainly came from the second half of the fiscal year. Management attributed the improvement in performance to the optimization of its own brand size and product portfolio, the increase in the number and length of Douyin Matrix live streaming accounts, and the expansion of its own app membership base. Citi said it is awaiting the audited results announced by the company on August 21, and will re-examine the financial model at that time.