Shares of Fufeng Group (00546) dropped almost 7% in Hong Kong trading, falling 6.8% to HK$4.865 at the time of writing, with turnover reaching HK$29.68 million.

The company's interim results for 2026 showed revenue of RMB 13.795 billion, down 1.2% year-on-year, while net profit attributable to shareholders plunged 80.66% to RMB 347 million. Earnings per share stood at RMB 0.1382, with an interim dividend of HK$0.064 per share declared.

The sharp profit decline was primarily attributed to margin compression from lower prices on key products such as monosodium glutamate (MSG), threonine, lysine, and xanthan gum. Additionally, net foreign exchange losses widened by RMB 592 million year-on-year to RMB 518 million during the first half.

Analysts at CICC note that prices for MSG and amino acids are currently at historically low levels. The market price of MSG stands at RMB 6,900 per tonne, positioning at the 18th percentile since 2012. As downstream restocking demand recovers, prices are expected to gradually rebound. Meanwhile, both threonine and lysine prices are at historical lows, leaving limited room for further downside, according to the brokerage.