The Hong Kong seafood consumption market remains evergreen, and OCEAN ONE HLDG demonstrates profit resilience in adverse conditions

According to Zhitong Finance APP, recently, Hong Kong consumer stocks have been hot, with the market value of the "New Consumption Three Sisters," represented by Pop Mart, quietly surpassing HKD 100 billion. In contrast, the former glory of "Moutai, Wuliangye, and Yanghe" is fading. On one side, high-end consumption is failing, while on the other, the consumer market is undergoing a transformation, with "cost performance" and "emotional consumption" becoming mainstream. Although the new consumption sector is thriving, Hong Kong retail stocks, which also belong to the consumer sector, are under pressure due to the sluggish local consumption market. However, some resilient consumption trends can still transcend cycles and demonstrate resilience. In recent years, the Hong Kong consumer market has faced challenges. With changes in consumption patterns, more Hong Kong residents are traveling and shopping in Shenzhen and other Greater Bay Area cities during weekends and long holidays, adversely affecting the Hong Kong catering retail industry, which has shown weak performance. The Census and Statistics Department has announced that the total sales value of the retail industry in March is expected to be HKD 30.1 billion, a year-on-year decrease of 3.5%, marking the 13th consecutive month of decline. However, OCEAN ONE HLDG (08476), a Hong Kong-listed company engaged in the import and agency of frozen seafood, has not been affected by the weak Hong Kong dining consumption, maintaining stable profitability and demonstrating strong operational resilience. Net profit increased more than fivefold in 8 years OCEAN ONE is a supplier of frozen seafood primarily engaged in import and agency in Hong Kong and Macau, with over 22 years of experience in the frozen seafood import and agency industry. It supplies a wide variety of frozen seafood products, exceeding 100 varieties, to over 370 wholesalers and large catering chain customers, mainly consisting of frozen seafood resellers and frozen seafood catering service providers. Its well-known products include Canadian shrimp, Japanese cooked scallops, Clearwater brand surf clams, king crab legs, grilled eel, Hokkaido scallops, and various sashimi shrimp. In the fiscal year 2025, OCEAN ONE's revenue is approximately HKD 396 million, with net profit increasing by about 2.3% year-on-year to HKD 41.686 million. Compared to its first year of listing in the fiscal year 2018, when revenue was about HKD 240 million and net profit was about HKD 6.654 million, revenue has grown by 65% over the eight years since its listing, while net profit has increased by approximately 5.3 times. Since its listing on the Hong Kong Growth Enterprise Market eight years ago, OCEAN ONE has maintained stable dividend distributions each year, reflecting the company's willingness to actively return to shareholders and indirectly confirming its ample cash flow reserves and sound financial fundamentals. Expectations for main board listing heat up According to data from the Census and Statistics Department, from 2012 to 2021, the average annual seafood import volume (including live and dead seafood) in Hong Kong exceeded 350,000 metric tons. Comparing past figures, there has been no significant difference in import volume over the past twenty years, reflecting the stability of seafood consumption among Hong Kong residents rather than a temporary consumption trend. Globally, the love for seafood among Hong Kong residents is also evident, with a high consumption rate. According to the latest statistics from the Food and Agriculture Organization of the United Nations in 2023, each Hong Kong resident consumes an average of about 65 kilograms of seafood per year, more than three times the global average consumption of 20 kilograms, ranking fifth in the world and third in Asia. This indicates a stable demand for high-end frozen seafood in Hong Kong, and facing customers with demanding requirements at the consumer end, the market can provide timely and reliable supply demands, with no signs of a trend shift On April 15th, OCEAN ONE HLDG announced its intention to transfer to the main board of the Stock Exchange, stating that it has appointed professionals to assess the feasibility of the transfer. The assessment is still in the preliminary stage, and no formal application for the transfer has been submitted to the Stock Exchange. However, the market remains optimistic about its move to the main board, as evidenced by the company's stock price performance, which has seen an increase of nearly 36% this year. According to Zhitong Finance, OCEAN ONE HLDG is still working with its appointed professionals to evaluate the possibility of the transfer and has not yet made a final decision on submitting a formal application to the Stock Exchange. If the company decides to submit a formal application for the transfer, it will disclose and announce this in a timely manner. For investors, the value of OCEAN ONE HLDG may not yet be fully reflected. As the company's seafood import agency business becomes more recognized in the market, and with expectations of a future transfer to the main board, the stock price performance of OCEAN ONE HLDG may enter a new phase, making it worthy of inclusion on investors' key observation lists