AVICHINA

AVICHINA jumped to an afternoon open at HKD 3.07, closing up 5.9% on the day with an intraday range of 6.1% (HKD 2.89-3.07) and turnover swelling to HKD 39.8 million. The catalyst was a combination of its subsidiary Zhongzhi Co.'s strong Q3 net profit surge of 51.33% YoY and the company's over RMB 200 million acquisition of a 59% stake in the airborne industry, fueling expectations for restructuring and earnings recovery. However, the stock remains 38.7% below its 52-week high of HKD 5.01, down 27.6% year-to-date, and trades below its 60-day moving average of HKD 3.244, indicating the long-term trend has yet to reverse. While Q4 revenue edged up 1.84% YoY to HKD 28.9 billion, net profit fell 17.96% YoY to HKD 408.5 million with EPS of HKD 0.0512, leaving the sustainability of profit recovery in question.