SHOUHUI GROUP

Shouhui Group (2621.HK) declined sharply today, closing down 5.12% at HKD 2.685 — a record low since listing — after accelerating losses in the afternoon session. The stock now sits 43.71% below its 52-week high of HKD 4.77 and has broken below both its 20-day (HKD 2.818) and 60-day (HKD 2.995) moving averages. While the company reported a ~19.5% YoY revenue increase to ~HKD 717 million in the first half of 2026, net profit plunged ~89% YoY to under HKD 82 million, triggering an intense selloff. The announced interim dividend of HKD 0.07 per share was overshadowed by the earnings slump, even though the stock trades at a P/E of 2.63x and P/B of 0.39x. That said, the company swung to a profit last year with a HKD 0.14 final dividend, offering a potential long-term anchor against current pessimism.

Shouhui Group opened slightly higher in the morning session and trended upward, closing at HKD 3.00, an 8.1% increase from the previous close of HKD 2.775 on thin turnover of only HKD 45,526. The rally was driven by the company's interim results and dividend announcement; although net profit for the first half of FY2026 plunged 89.2% to RMB 71.6 million, revenue grew 13.1% to RMB 627.1 million, and the company declared an interim dividend of HKD 0.07 per share, translating to a dividend yield of 4.65%. The current price of HKD 3.00 is 40% below the 52-week high of HKD 5.00, yet sits above the 20-day MA of HKD 2.863 while still below the 60-day MA of HKD 3.079, with a YTD decline of 17.36%. However, the sharp drop in net profit contrasted with revenue growth warrants caution.

Shouhui Group opened lower and continued to decline in the morning session, dropping from 2.860 HKD to 2.750 HKD, a 3.85% fall, driven by the latest earnings report showing a sharp profit decline. The company's FY26 H1 net profit slumped 89.2% YoY to RMB 71.6 million, despite a 13.1% revenue increase to RMB 627.1 million, with a net profit margin of only 11.4%. The stock at 2.75 HKD is 45% below its 52-week high of 5 HKD and below both the 20-day MA of 2.86 HKD and the 60-day MA of 3.1 HKD, with a YTD decline of 24.24%. However, the company declared an interim dividend of HKD 0.07 per share, offering a dividend yield of approximately 5.07%, which provides some support.

Shouhui Group (2621.HK) staged a sharp afternoon rally, closing up 5.88% at HK$2.97, reversing the morning's weak open. The surge was driven by the upcoming board meeting on August 27 to review interim results and dividend, following the company's earlier profit guidance for FY2025 (net profit of HK$780-800 million) and a proposed final dividend of HK$0.14 per share, implying a dividend yield of 4.70%. Q4 FY2025 revenue rose 39.88% YoY to HK$508.6 million, while net profit soared 324.34% YoY, underscoring a strong earnings turnaround. However, the stock remains 40.6% below its 52-week high of HK$5.00 and trades below the MA60 (HK$3.118), with a YTD decline of 18.18%, reflecting lingering valuation pressure alongside the positive catalysts.

Shouhui Group (2621.HK) opened flat at HKD 2.75 in the morning session, then quickly rallied to an intraday high of HKD 2.90, gaining 5.45%, driven by a series of recent positive catalysts. The company swung to a full-year profit of HKD 793 million for 2025 and declared a final dividend of HKD 0.14 per share, implying a dividend yield of approximately 4.81%. Q4 revenue surged 39.88% YoY to HKD 508.6 million, while net profit skyrocketed 324.34% YoY. However, the current price of HKD 2.90 remains 42.12% below its 52-week high of HKD 5.01 and below its 60-day MA of HKD 3.143, with a YTD decline of 20.11%, reflecting lingering caution on valuation recovery.