Which Hong Kong stocks have skyrocketed during the coronavirus pandemic? Hint: one makes toilet paper
- Makers of toilet paper, respiratory devices are among Hong Kong-listed companies reporting juicy profits – and boy have their share prices soared
- Vincent Medical Holdings has shot up nearly 150 per cent in just over two weeks
People may be staying away from hotels, airlines and luxury toys during Covid-19, but they’re still buying toilet paper – lots of it – explaining why Vinda International Holdings is one of the lucky few Hong Kong-listed companies reporting surging profits.
Others besides Vinda that have recently issued so-called “profit alerts” include makers of respiratory devices and cleaning products as well as a game developer. Unlike the endless stream of companies warning of expected profit losses usually blamed on the pandemic, these companies recently told investors to expect excellent news ahead. One – Vincent Medical Holdings – has shot up nearly 150 per cent in just over two weeks.
“The coronavirus hasn’t been all bad for businesses,” said Gordon Tsui Luen-on, managing director of Hong Kong-based brokerage Hantec Pacific. “Some companies have been boosted by the pandemic, particularly those manufacturing personal hygiene, cleaning and medical products that have seen a real need during these times.”
That tendency to stockpile has been a boon for a company like Vinda, China’s largest producer of tissue and toilet paper. It announced it expects a whopping 107.5 per cent increase in net profit to HK$913 million (US$117.8 million) for the six months ending June 30 compared to the same period last year, according to the company’s interim results announced on Friday.
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Coronavirus fears spark toilet paper panic buying around the world
Its brands of toilet paper, tissues and other products include Vinda, Tempo, Libresse and Dryper for babies. It has shot up 115 per cent this year. That is more than some high-flying new economy stocks, such as Tencent, China’s social media and online games giant, which has gained 39 per cent this year.