LEMO SERVICES

Lemo Technology Services closed at HKD 10.80, down 5.35% from the previous close of HKD 11.41, extending the afternoon session decline, pressured by weaker-than-expected earnings and recent stock volatility. Despite Q1 2025 revenue rising 16.97% YoY to HKD 236.8 million, net profit fell 10.43% YoY to HKD 24.4 million, and net margin contracted from 14.12% to 10.56%, indicating margin compression. The stock opened at HKD 11.35 but dropped steadily to an intraday low of HKD 10.80, with thin trading volume of 12,700 shares. The current price is 87.3% below the 52-week high of HKD 85 and sits below the 20-day MA of HKD 11.87, though above the 60-day MA of HKD 11.10. The company trades at a low P/E of 5.78x and P/B of 1.08x, suggesting deep value territory.

LEMO Holding closed at HKD 10.41, down 9.7% from the previous close of HKD 11.53, driven by a lack of positive catalysts, ongoing digestion of the earlier H-share full circulation announcement, and a 10.43% YoY decline in Q1 2025 net profit to HKD 24.42 million, with net profit margin narrowing from 14.12% to 10.56%. The stock is now 87.75% below its 52-week high of HKD 85, trades below both the MA20 (HKD 11.83) and MA60 (HKD 11.18), and is down 71.86% YTD, reflecting persistent weakness. However, the day's turnover was only 100 shares, indicating extremely low liquidity, which may allow for a technical rebound.

LEMO SERVICES (2539.HK) weakened in the morning session, opening 5.1% lower at HKD 10.800 and trading in a narrow range, as market sentiment turned cautious following a period of extreme volatility. The stock has collapsed 87.3% from its 52-week high of HKD 85.0 and now trades well below both its 20-day (HKD 11.578) and 60-day (HKD 11.308) moving averages. Despite a 17.0% YoY revenue increase to HKD 237 million in Q1 2025, net profit fell 10.4% YoY to HKD 24.4 million, with net margin narrowing from 14.1% to 10.6%, indicating margin pressure. Recent news of a proposed full circulation of H shares failed to lift the stock, which is down 70.8% YTD. However, the stock's forward PE of 5.8x and PB of 1.1x, combined with a 5.4% dividend yield, offer some valuation support.

LEMO SERVICES (2539.HK) staged a low-to-high rally during the morning session, climbing from its opening price of HKD 11.5 (the previous close) to HKD 12.3, a gain of 6.96%. The early session saw a mere 800 shares traded, with a turnover of just HKD 9,840, indicating extremely thin liquidity. The stock had previously attracted attention on news of its innovative massage chair concept (e.g., a 17.71% surge on early December), but was later hit by sharp declines (e.g., a 20% drop on Dec 9). Today's modest rebound appears to be a technical correction. Financially, Q1 2025 revenue grew 16.97% YoY to HKD 236.8 million, but net profit fell 10.43% YoY to HKD 24.4 million, with the net profit margin narrowing from 14.12% to 10.56%. While the current price of HKD 12.3 sits above its MA20 (HKD 11.45) and MA60 (HKD 11.49), it remains 85.53% below its 52-week high of HKD 85, with a YTD decline of 66.76%. The stock's PB stands at 1.23x, PE at 6.58x, and dividend yield at 4.71%. However, with only 73 price bars recorded throughout the entire morning session and no further trades after the opening burst, the lack of liquidity may cap any further upside.

LEMO SERVICES closed at 12.52 HKD, down 5.08% on the day, with a single-session downward trend from the morning session's open of 13.19 HKD to the afternoon session's low of 12.52 HKD, on thin turnover of 343,336 HKD. The stock has tumbled 85.27% from its 52-week high of 85 HKD on December 8, 2025, and now trades below its MA60 of 11.898 HKD, with a YTD drawdown of 66.16%. News flow includes a proposal for H-share full circulation, and full-year 2025 net profit of 93.73 million RMB (+9.2% YoY) with a final dividend of 50.6 HK cents. However, Q1 2026 revenue rose 16.97% YoY to 237 million HKD, while net profit fell 10.43% to 24.4 million HKD, compressing the net profit margin from 14.12% to 10.56%, underscoring profitability concerns. While the stock had surged 17.71% in February on an innovative massage chair product, the recent earnings miss has weighed on sentiment.