DONGYUE GROUP

Dongyue Group (189.HK) opened lower at HK$12.27 in the morning session and continued to decline, reaching HK$11.82 by 10:33 BJ time, down approximately 4.9%. The intraday low of HK$11.82 approaches support near the 52-week low of HK$9.42. The decline is driven by a tepid market reaction to the company's interim profit forecast: despite expecting a net profit increase of over 31% YoY, the stock has already fallen more than 50% from its 52-week high of HK$23.74. The current price of HK$11.83 is well below the MA20 (HK$14.40) and MA60 (HK$15.46), reflecting technical weakness that dampens the positive news. From a fundamental perspective, Q4 2025 net profit surged 79.2% YoY to HK$479.6 million, with EPS of HK$0.2831 up 76.7% YoY. The valuation is modest at a PE of 11.28x and PB of 1.29x, yet the YTD gain is only 8.93%, lagging the earnings growth trajectory. However, refrigerant prices remain elevated, and the market's focus will be on whether product price trends can support a rebound.

Dongyue Group opened lower and continued to decline, touching HKD 12.71 in the afternoon session and closing down 5.5% at HKD 12.67, mainly driven by profit-taking after the company's recent positive profit alert. The forecast of over 31% YoY interim net profit growth, fueled by higher refrigerant prices, has been largely priced in following the stock's earlier rally (YTD still up 16.7%). The afternoon sell-off reflected concerns over a lack of near-term catalysts after the earnings update; the stock fell below both the 20-day MA (HKD 17.38) and 60-day MA (HKD 15.42), now 46.6% below the 52-week high of HKD 23.74, though its P/E of 12.1x and P/B of 1.38x suggest a relatively discounted valuation level.

189.HK fell 4.89% to close at HK$13.23, hitting an intraday low. The afternoon session accelerated declines, dropping from around HK$13.65 to HK$13.22, after the morning session peaked at HK$13.77. Despite Q4 2025 net profit surging 79.2% YoY to HK$479.6 million and EPS of HK$0.2831 rising 76.7% YoY, the stock remains 44.27% below its 52-week high of HK$23.74 and below the 20-day MA of HK$17.816, reflecting valuation digestion pressure. The current PE of 12.6x, PB of 1.44x, and dividend yield of 2.27% suggest moderate valuation, while YTD still gains 21.82%. Notably, operating profit grew 62.93% YoY, and net profit margin held steady at 12.52%, which may offer some support.

Dongyue Group tumbled 9.8% in the afternoon session, closing at HK$13.65 on turnover of HK$889 million. The stock initially surged to an intraday high of HK$15.33 on a profit alert for H1 net profit growth of over 31%, but heavy profit-taking drove a sustained decline to the day's low. While Q4 and Q3 net profit jumped 79.2% and 69.1% YoY respectively, the stock is now 42.5% below its 52-week high of HK$23.74 and trading well below its 20-day MA of HK$18.72, intensifying the technical pullback. Despite a PE of 13.01x and PB of 1.49x, the stock is still up 25.7% YTD; whether earnings growth can sustain the current valuation remains to be seen.

Dongyue Group (189.HK) opened sharply lower in the morning session at HK$16.83, then quickly dropped to an intraday low of HK$16.27, down 5.0% on volume of 2.88 million shares and turnover of HK$47.45 million, primarily driven by the company's announcement of IPO withdrawal and a profit warning. The company's Q4 net profit surged 79.2% YoY to HK$479.6 million, with EPS up 76.7% YoY to HK$0.2831, reflecting solid fundamentals. At the current price of HK$16.27, the stock is trading 14.0% below its 20-day moving average (HK$18.859) and 31.5% off the 52-week high of HK$23.74, though it remains up 49.8% year-to-date and 7.4% above the 60-day MA (HK$15.149). Recent refrigerant price highs had driven the stock to record levels, while the IPO withdrawal and profit warning have weighed on short-term technicals.