SHOUCHENG

Shoucheng Holdings opened lower and continued to decline, hitting an intraday low of HKD 1.56 in the afternoon session, down 5.5% from the previous close of HKD 1.65, primarily due to a sharp deterioration in earnings and downward price pressure. The latest EPS stood at -HKD 0.0018, with net profit plunging 119.28% YoY and operating profit falling 38% YoY, while ROE turned negative to -0.52%, underscoring fundamental weakness. Despite the company's frequent share repurchases (ranging from HKD 1.48 to 1.76) and investments in AI infrastructure, such as a laser precision manufacturer, market sentiment remained dampened by the bleak earnings report. The current price of HKD 1.56 sits 41.79% below its 52-week high of HKD 2.68, down 28.44% year-to-date, and below both the MA20 (1.586) and MA60 (1.659), indicating a bearish technical position. However, the approval of Unitree Robotics' IPO registration could provide a potential catalyst for value realization in the future.

Shoucheng Holdings strengthened in the afternoon session, closing at HK$1.65, up 4.43%, with a turnover of approximately HK$65.49 million. The stock staged a rebound from the session's low of HK$1.58 in the morning, gradually climbing to the intraday high of HK$1.65 in the afternoon. On the news front, the company disclosed that its managed fund has taken a minority stake in Shenzhen Shuoguang Precision Technology, a laser precision manufacturer, to bolster AI infrastructure. Meanwhile, Unitree Robotics' IPO registration received approval, and Shoucheng's book value gains from the investment are expected to exceed RMB 8 billion, drawing attention to its asset monetization progress. The company has also been actively repurchasing shares, with buyback prices ranging from HK$1.48 to HK$1.58, providing underlying support. Financially, Q4 2025 revenue was HK$353 million, up 3.88% YoY, but net profit was a loss of HK$14.4 million, with a net margin of -4.09%, EPS of -HK$0.0018, and ROE of -0.52%. The stock is still 38.43% below its 52-week high of HK$2.68 and down 24.31% YTD, trading slightly below the 60-day MA of HK$1.661, though it has reclaimed the 20-day MA of HK$1.601.

Shoucheng Holdings opened higher and sustained its upward momentum into the afternoon session, closing at HKD 1.560, up 5.41% from the previous close of HKD 1.480, with the intraday high of HKD 1.560 and a low of HKD 1.450 recorded in the early morning. Turnover reached approximately HKD 42 million, with a turnover rate of 0.35%. The rally was driven by three catalysts: first, the IPO registration approval of Unitree Robotics, in which Shoucheng holds a fund stake, suggesting significant valuation gains for its investment portfolio, with earlier reports indicating book value exceeding RMB 8 billion; second, the company's ongoing share repurchase and cancellation program, with the latest buyback disclosed at HKD 1.50-1.51 per share, signaling management confidence; third, the company's combined dividend and buyback strategy has returned approximately HKD 6.877 billion to shareholders over eight years. However, earnings fundamentals remain weak: Q4 2025 net profit was -HKD 14.427 million, plunging 119.28% YoY, while revenue rose 3.88% YoY to HKD 352.828 million, but operating profit dropped 38% YoY, and net profit margin stood at -4.09%. The current price of HKD 1.560 approaches the upper end of the recent buyback range and is near the 52-week high, though a PB ratio of 1.13x and a dividend yield of 4.35% provide some valuation support.

Shoucheng Holdings weakened further in the afternoon session, closing at HKD 1.42, down 5.33%, hitting a new 52-week low. The stock staged a intraday reversal pattern, initially touching a daily high of HKD 1.49 in the morning before sliding steadily, breaking below the HKD 1.44 support in the afternoon and finishing at the day's lowest. On the news front, the company has continued to disclose share buybacks, with repurchase prices gradually declining from the HKD 1.54-1.76 range to HKD 1.50-1.51, signaling management's support but failing to stem the downtrend. Meanwhile, its portfolio company Unitree Robotics, a humanoid robot developer, has passed the listing committee review for its IPO, with the fund's total value expected to exceed RMB 8 billion; however, this catalyst has yet to be priced into the stock. In terms of fundamentals, Q4 2025 revenue edged up 3.88% YoY to HKD 353 million, but net profit swung to a loss of HKD 14.4 million, a 119.28% YoY decline, underscoring earnings pressure. The current PE stands at 64.76x. From a price perspective, the stock is down 34.86% YTD, and the closing price has fallen below both the 20-day MA (HKD 1.614) and 60-day MA (HKD 1.662), indicating a bearish technical setup. Though, with a PB of only 1.03x and a dividend yield of 4.78%, the depressed valuation may offer some downside protection.

Shoucheng Holdings opened at HKD 1.70 and declined throughout the day, hitting an intraday low of HKD 1.58 in the afternoon session before closing at HKD 1.61, down 4.17% from the prior close of HKD 1.68 on turnover of approximately HKD 94.5 million. The weakness was primarily driven by persistent earnings deterioration—net profit for both Q4 and Q3 2025 was a loss of about HKD 14.4 million, plunging 119% YoY, with EPS turning negative to -HKD 0.0018, despite a modest 3.88% revenue increase. The stock is down 26.15% YTD, trading below its 20-day MA of HKD 1.675 and 60-day MA of HKD 1.677, and 39.93% off its 52-week high of HKD 2.68; valuation shows a PE of 73.47x and a PB of 1.17x. On the positive side, Unitree Robotics' IPO approval and news that Shoucheng's robotics investment portfolio has grown about fourfold, with book gains exceeding RMB 8 billion, offered some support, while ongoing share repurchases signaled management confidence. However, operating profit still fell 38% YoY to approximately HKD 34.3 million, indicating the recovery in fundamentals remains elusive.