BLACK SESAME

Stock closed at HK$11.21, down 1.58%, exhibiting high-open-low-close as profit-taking emerged. The founder extended shareholding lock-up to support on-device AI chip strategy, signaling management confidence yet failing to prevent profit realization. Q4 2025 revenue reached HK$3.17 billion with 102% year-over-year growth, though net loss widened to HK$368 million with a net margin of -116%, indicating persistent unprofitability despite robust topline expansion. The stock has declined 57.51% from its 52-week high of HK$26.38 and sits only 8.41% above its 52-week low, at near-bottom levels with a year-to-date decline of 42.6%. Technically, the stock trades below its 60-day moving average of HK$13.62 with the intermediate downtrend intact. However, multiple brokerages including CITIC maintain 'buy' ratings, betting on chipmaking commercialization progress.

Black Sesame International closed down 0.35% at HK$11.29 after morning strength faded, having surged to HK$11.67 before retreating. Q4 revenue surged 102.38% year-over-year to HK$316.6 million, yet net losses widened to HK$368.3 million with a staggering negative margin of -116%. The company recently completed a HK$632 million capital raise directed at R&D and business expansion, while modernizing board governance. The stock has declined 57.2% from its October peak of HK$26.38 and fallen 42.2% year-to-date, now trading just 9.2% above its 52-week low. Bank of America maintains a neutral rating with a HK$20 target price; CITIC and Huatai keep buy ratings. The tension between explosive revenue growth and severe losses persists—accelerating cash burn and capital requirements remain the primary constraint on upside momentum.

Black Sesame closed up 3.0% at HK$11.33, bouncing from a morning low of HK$10.79 at 09:36 to an intraday high of HK$11.47 at 10:25, then consolidating in a HK$11.16-11.39 band. The stock has collapsed over 57% from its 52-week peak of HK$26.38 and fallen 42% year-to-date, pricing in extreme pessimism. Recent shareholder approval of governance reforms, strong revenue growth (Q4 +102.4% YoY, Q3 +90.9% YoY), and maintained buy ratings from institutions like CITIC Securities sparked bargain-hunting. However, the company faces mounting losses: Q4 net loss of HK$368 million, Q3 loss of HK$362 million, with a -116% net margin signaling weak near-term profitability. While the PB compressed to 6.29, negative EPS has rendered traditional valuation metrics obsolete. The contradiction between revenue growth and widening losses remains stark.

Black Sesame Intelligence fell 4.1% to HK$11.00, sliding after an early-morning peak of HK$11.24 to an intraday low of HK$10.88. The morning session's selloff pressure persisted through the afternoon, with the stock consolidating in the HK$11.00-11.12 range and failing to recover. From a price perspective, the stock has declined 43.68% year-to-date and retreated 58.3% from its 52-week high of HK$26.38, now hovering just 6.4% above the 52-week low of HK$10.34. On fundamentals, Q4 revenue grew over 100% year-over-year to HK$316.6 million, yet net losses expanded to HK$368.3 million with a negative margin of -116%, reflecting elevated R&D spending. The company recently held a shareholder meeting and adjusted its fundraising plan, reallocating HK$632 million toward research and expansion. While CITIC and other analysts maintain buy ratings, the widening losses and elevated valuation (PB of 6.11) continue to cap the stock's upside.

The stock declined 1.97% to HK$11.47, pressured by persistent losses and valuation concerns. Q4 revenue hit HK$316.6 million with 102% year-on-year growth, yet net loss remained HK$368.3 million with EPS of -0.614, reflecting sustained R&D investment pressure. Price-wise, it has fallen 41% year-to-date and 56.5% from its 52-week high of HK$26.38, though it trades slightly above its 20-day moving average. Institutional views diverge: CITIC Securities maintains a Buy rating citing strong growth visibility, while Bank of America keeps a Neutral stance with a target price of 20 yuan. Recent shareholder meetings covered routine governance reforms and capital mandates. The persistent loss position despite strong revenue growth remains the key constraint, keeping investors cautious on near-term pullbacks.