Economic Observation Network Changhe is in talks to sell its European beauty assets, and its stock price rose sharply during trading on July 10th due to related news.

Business progress:
On July 10, Changhe confirmed that it was negotiating to sell its European perfume and cosmetics company Marionnaud, and the potential buyer was a related party of Groupe Bogart, a French beauty group UBS research report points out that the brand has poor performance due to intensified competition, and has not been profitable in terms of EBITDA. The sale may have a slight positive impact on the stock price Changhe acquired Marionnaud in 2005 for 534 million euros. The brand operates over 700 stores in Europe and will generate approximately 536 million euros in revenue in France by 2024 。

Stock price and fund performance:
Affected by this news, Changhe's stock price rose sharply today (July 10th), rising 7.68% as of noon to HKD 70.10, with a significant increase in transaction volume to HKD 437 million. From a technical perspective, the stock price broke through the 5-day, 10 day, and 20 day moving averages today, and the MACD bar chart turned from negative to positive, indicating a strengthening of short-term momentum. In terms of funds, the main force showed a slight net outflow yesterday (July 9th), but this morning there was a significant increase in volume and a noticeable increase in fund attention.

The above content is based on publicly available information and does not constitute investment advice.