China Foods Limited (HKG:506) stock is soaring 5.12% in Thursday's trading session following the release of its full-year 2024 financial results, which exceeded analyst expectations in key areas. The company's strong performance and positive outlook have sparked investor enthusiasm, driving the significant stock price increase.

The beverage company reported revenue of CN¥21.5 billion for the fiscal year 2024, which was flat compared to the previous year but notably beat analyst estimates by 2.8%. Net income saw a 3.4% year-over-year increase to CN¥860.5 million, with the profit margin slightly improving from 3.9% to 4.0%. Earnings per share (EPS) rose to CN¥0.31 from CN¥0.30 in FY 2023, aligning closely with analyst projections.

Investors are particularly encouraged by China Foods' future prospects. The company's revenue is forecast to grow at an average rate of 4.0% per annum over the next three years, although this is below the 8.2% growth expected for the Hong Kong Beverage industry as a whole. The positive results and growth outlook appear to have overshadowed the one warning sign identified for the company, as the market responds favorably to the earnings report.