Movement Alert|BUSYMING Falls 3.07% in Regular Trading, Weighing Scandal Continues to Pressure Brand Credibility

Market Focus
Sep 08

On September 8, BUSYMING fell 3.07% in regular trading, trading at 379.2 HKD/share, with turnover of approximately 76.03 million HKD, extending the prior session's losses.

The decline comes as the company's subsidiary brands, including Zhao Yiming Snacks and Haoxianglai, remain embroiled in a widening short-weighing controversy. Market regulators in multiple cities across China, including Baotou, Yuncheng, and Yancheng, have launched targeted inspections of electronic pricing scales at the company's franchise stores. On September 7, BUSYMING issued a formal apology, announced a dedicated compensation fund offering 10x the price difference for any weighing errors, and rolled out rectification measures including daily scale calibration and a real-time data reporting system across all stores. Despite the swift response, negative sentiment continues to ferment, with the related apology topic trending at the top of Weibo's hot search list. Market participants have expressed concern over the company's ability to enforce terminal compliance across its network of over 26,400 franchise locations.

Notably, the company reported strong first-half results on August 24, with revenue of 45.0 billion RMB, up 60.0% year-over-year, and adjusted net profit of 2.45 billion RMB, up 136.6%. Goldman Sachs had previously reiterated a Buy rating with a target price of 581 HKD, though the ongoing reputational headwinds may weigh on near-term sentiment.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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