ABLE DIGITAL

Shanghai Able Digital (2687.HK) saw a strong morning session, closing at HKD 206.2, up 5.0% from the previous close of HKD 196.3, with an intraday range of HKD 196.4 to HKD 206.2, forming a rebound-from-lows pattern. Recent cooperation framework agreements with Alibaba Cloud and Volcano Engine have boosted market sentiment toward its digital education solutions. Q4 2025 revenue rose 19.47% YoY to HKD 385.9 million, net profit increased 23.53% YoY to HKD 127.4 million, and EPS grew 21.75% YoY to HKD 2.09, with ROE at 44.73%, underscoring solid fundamentals. The stock is now 5.15% below its 52-week high of HKD 217.4, yet has gained 25.35% YTD and trades above its MA20 (HKD 169.14) and MA60 (HKD 144.26). Valuation remains high, with a PE of 95.35x and PB of 12.12x, reflecting market pricing for growth. However, morning session volume was only 35,400 shares with a turnover rate of 0.06%, indicating cautious follow-through buying.

2687.HK's intraday session saw a spike and retreat, touching a high of HK$199.70 in the afternoon before closing at HK$195.70, driven by recently announced cooperation framework agreements with Volcano Engine and Alibaba Cloud, alongside a Q4 revenue increase of 19.47% YoY to HK$386 million and net profit growth of 23.53% YoY to HK$127 million. However, the current price remains 9.98% below the 52-week high of HK$217.40, and a high trailing PE of 90.49x prompted some profit-taking, though the stock's YTD gain of 18.97% still significantly outpaces the Hang Seng Index.

The stock opened lower and rallied during the morning session, rising 5.1% from the previous close of HKD 151.1 to an intraday high of HKD 158.8, after touching a low of HKD 150.9 in the pre-opening phase. The move was driven by sentiment around a non-binding cooperation framework agreement with Volcano Engine, although prior market skepticism about the deal's nature had weighed on the stock over recent days. Fundamental data showed Q4 2025 net profit grew 23.53% YoY to HKD 127.4 million, revenue rose 19.47%, and EPS reached HKD 2.0932. However, the current price is still 26.95% below the 52-week high of HKD 217.4, with a YTD decline of 3.47%, and the PE of 73.43x and PB of 9.33x reflect elevated valuation.

ABLE DIGITAL experienced a volatile session, surging to an intraday high of HK$159.9 in the morning before retreating in the afternoon to close at HK$151.1, down 4.1% from the previous close of HK$157.6. The decline contrasts with recent AI collaboration announcements, including framework agreements with Alibaba Cloud and Volcano Engine, as market concerns over the non-binding nature of these deals outweighed positive sentiment, driving a cumulative drop of over 20% in the past five trading days. The stock now trades below its 20-day moving average (HK$154.61) and is 30.5% below the 52-week high of HK$217.4 set on July 19. Despite the price weakness, Q4 2025 results showed operating revenue of HK$386 million (+19.5% YoY) and net profit of HK$127 million (+23.5% YoY), with a net profit margin of 33%. However, valuation remains elevated with a PE of 69.9x and PB of 8.9x, while total market capitalization stands at HK$10.1 billion and turnover rate is only 0.29%. The YTD decline of 8.2% still leaves the stock well above its 52-week low of HK$82, suggesting the pullback is largely sentiment-driven rather than fundamental.

2687.HK rallied in the afternoon session, closing at HK$160.2, up 5.12%, after hitting an intraday low of HK$151.0, primarily driven by the cooperation framework agreement with Volcano Engine, although earlier market concerns over the non-binding nature of the agreement had led to consecutive declines; latest earnings for Q4 2025 showed operating revenue of HK$386 million (+19.47% YoY) and net profit of HK$127 million (+23.53% YoY), yet the stock trades at a high P/E of 74.08x; the current price is 26.31% below the 52-week high of HK$217.4 but above both MA20 (HK$153.69) and MA60 (HK$139.77), though YTD is still down 2.61%.