What guidance, if any, is the company providing for the second half of FY2025 and the full FY2026, and how might this influence our trading strategy?
Guidance from the release
Chanson Internationalâs H1âFY2025 filing does not contain explicit numerical guidance for the second half of FY2025 or for fullâyear FY2026. The company only reiterated its âfocus on expanding bakeryâshop footprints in Tierâ2 and Tierâ3 Chinese cities and on accelerating U.S. seasonalâproduct rollâouts.â In the MD&A the management highlighted âstrong topline momentum in Q2 driven by new store openingsâ and said that âcash flow generation is expected to remain positive as we continue to improve operating leverage.â In practice, the absence of a concrete salesâ or earningsâtarget for H2âFY25/FY26 signals a cautious outlook and leaves the forwardâlooking numbers to be inferred from the current growth trajectory rather than from a setâpoint.
Trading implications
Because the market now has to price growth purely on the backâofâtheâenvelope trajectory, the stock is likely to be more responsive to any forwardâlooking data points that emerge in the next earnings release or in management commentary (e.g., storeâcount updates, sameâstore sales trends, U.S. seasonality performance). Technically, CHSN is holding just above its 20âday EMA (~$2.35) with a bullish bullish flag forming between $2.30â$2.45; volume has been rising 15âŻ% weekâoverâweek. In a nonâguidance environment, a clean beat on H2âFY25 earnings would likely trigger a shortâterm rally to the next resistance at ~$2.70, while a miss would test the $2.15 support and potentially open a downâside channel toward the 50âday EMA (~$1.95).
Actionable strategy
1. Long bias with tight risk â Enter a buyâstop just above the breakout of the bullish flag (ââŻ$2.55). Target the $2.70 resistance; if price stalls, tighten stop at the 20âday EMA (~$2.35). This play assumes a positive forwardâlook from management (e.g., incremental storeâcount guidance) and a beat on earnings.
2. Short bias with defined stop â If the earnings release shows slower store rollâout or deteriorating U.S. seasonal sales, consider a sellâstop just below the $2.15 support. Target the 50âday EMA (~$1.95) and protect with a stop at $2.25.
Overall, the lack of formal guidance makes the earnings surprise the primary catalyst; monitor managementâs qualitative comments for any implied targets, and let the priceâaction around the identified technical levels dictate entry/exit points.