LUNG FUNG GROUP

Lung Fung Group Holdings opened lower and continued to decline in the morning session, last trading at HKD 3.605 as of 10:09 BJ, down 4.1% from the previous close of HKD 3.760. The drop was driven by a sharp fall from the intraday high of HKD 3.760 to a low of HKD 3.555, with 515,000 shares changing hands, turnover about HKD 1.9 million. Newly listed in June, the stock is up 28.29% YTD but trades below its 20-day moving average (HKD 3.655) and 21.63% off its 52-week high of HKD 4.6. The latest full-year results for FY26 showed revenue up 33.2% to HKD 3.28 billion, net profit up 57.9% to HKD 269.1 million; Q1 2026 revenue grew 42.48% YoY to HKD 697.4 million, net profit surged 130.68% YoY to HKD 47.76 million, and net profit margin improved to 6.85% from 4.23%. Recent news highlighted the stock's rally following record earnings, though today's intraday weakness suggests profit-taking.

Lung Fung Group surged in the afternoon session, hitting HK$3.92 by 13:22 BJ, up 5.1% from the previous close. The stock rebounded over 7% from its intraday low of HK$3.66, breaking above both its 20-day (HK$3.647) and 60-day (HK$3.251) moving averages. The rally was fueled by the company's recently released record FY26 results: annual net profit jumped 57.9% to HK$269.1 million, revenue rose 33.2% to HK$3.28 billion, and Q1 net profit surged 130.68% to HK$47.76 million on a 42.48% revenue increase. Net margin improved from 4.23% to 6.85%. The stock is up 39.5% year-to-date, still 14.78% below its 52-week high of HK$4.6, but trades at a low P/E of 7.28x against a very high P/B of 42.5x. However, a cautious capital flow in Hong Kong markets may pose headwinds for small-cap stocks.

2290.HK opened lower and continued to decline, closing the morning session at HK$3.68, down 5.28% from the previous close of HK$3.885. The drop was primarily driven by profit-taking after the market digested the Q1 2026 earnings report released the previous trading day, which showed operating revenue of HK$697.4 million (up 42.48% YoY) and net profit of HK$47.8 million (up 130.68% YoY), with net profit margin improving to 6.85%. The stock traded from its opening high of 3.885 steadily downward, with total volume of 542,000 shares and turnover of HK$2.03 million, reflecting thin trading (turnover rate 0.11%). Currently at HK$3.68, the stock is 20% below its 52-week high of HK$4.60 but up 30.96% YTD, and it is trading above both the MA20 (HK$3.659) and MA60 (HK$3.207), suggesting medium-term support. While recent news included the company's ESG report and annual shareholder meeting notice, no new catalysts emerged following the quarterly release. However, the stock's PE of 6.84x contrasts sharply with a PB of 39.9x, indicating valuation divergence.

Lung Fung Group Holdings (2290.HK) rallied in the morning session, closing at HK$3.865, up 4.46% from the previous close of HK$3.70, driven by its strong Q1 earnings. After touching an intraday low of HK$3.655, the stock rose steadily to a high of HK$3.87 before noon, with a swing of about 5.9%. Q1 operating revenue of HK$697.4 million jumped 42.48% YoY, net profit of HK$47.76 million surged 130.68% YoY, and net profit margin improved to 6.85% from 4.23%, reflecting recovery in beauty and healthcare retail. The stock trades 15.98% below its 52-week high of HK$4.6 (June 4, 2026), but has gained 37.54% YTD, and sits above both the MA20 (HK$3.653) and MA60 (HK$3.196), with a PE of about 7.18x. However, the session saw only about 671,500 shares traded, reflecting a low turnover rate of 0.13%.

Lung Fung Group saw a sharp intraday decline, opening at HK$3.800 before sliding to its 52-week low of HK$3.635 and closing 5.09% lower, with volume of 2.303 million shares and turnover of HK$8.564 million, resulting in a session range of about 4.5%. Despite strong FY26 results—revenue of HK$3.28 billion (+33.2% YoY) and net profit of HK$269.1 million (+57.9% YoY)—the stock failed to sustain gains and retreated. YTD, the stock is still up 29.36%, trading at its 20-day MA (HK$3.635), but 20.98% below its 52-week high of HK$4.6, with a P/E of 6.75x vs. a high P/B of 39.41x, reflecting valuation divergence. However, Q1 retail sales rose 21.2% YoY to HK$829.3 million, underpinning fundamentals.