Hong Kong stocks rose more than 600 points, beverage stocks faced pressure against the trend, and MIXUE fell by 10% after being downgraded to "Neutral" by UBS

On the eve of the month-end settlement, Hong Kong stocks performed well this morning (28th), with the Hang Seng Index continuing its upward trend over the past five days, recently reported at 27,757 points, reaching a nearly four-and-a-half-year high, up 630 points or 2.3%, with a turnover of HKD 1.76495 billion.

New consumption stock MIXUE (02097.HK) opened down 2.5% at HKD 435, and the decline widened in the early session, falling below the HKD 400 mark, hitting a low of HKD 396. It is currently reported at HKD 398.8, down 10.6% against the market trend, with a turnover of 2.1031 million shares, involving HKD 854 million.

UBS downgraded MIXUE's rating to "Neutral," stating that the current valuation is reasonable, and there may be negative catalysts in the short term, with the target price lowered from HKD 490 to HKD 468. UBS has reduced its net profit forecast for MIXUE for 2026 to 2027 by 7%, which is 11% to 13% lower than market expectations, mainly reflecting short-term gross margin pressure. Due to rising raw material costs, an increased proportion of takeout, and intensified competition leading to operational deleveraging at the store level, as well as the expiration of a one-year lock-up period for pre-IPO investors, there may be short-term pressure.

Tea beverage stocks generally faced pressure against the market trend, with CHABAIDAO (02555.HK) and GUMING (01364.HK) down 2% to 2.9%, and Shanghai Aunty (02589.HK) and Nayuki's Tea (02150.HK) down 0.8% to 0.9%