CHUANGXIN IND

Chuangxin Industries (2788.HK) opened lower and continued to decline during the day, with an intraday pattern of rallying then falling. The morning session saw the price slide from HK$16.60 to HK$15.95, and the afternoon session extended losses to HK$15.85, closing at HK$15.85, down 5.0% from the previous close of HK$16.69. The decline was mainly driven by the company's disclosure of a potential tax bill of up to RMB 500 million at its Inner Mongolia subsidiary, which weighed on sentiment amid broader concerns over aluminum oversupply. Despite a strong interim profit forecast (up 154%-177% YoY to RMB 2.2-2.4 billion) and positive ratings from CICC and Morgan Stanley, these positives have been priced in. The stock currently trades 53.33% below its 52-week high of HK$33.96, below its 20-day moving average of HK$16.09, and is down 22.6% YTD, though it remains 17.8% above the 52-week low of HK$13.46.

Chuangxin Industries opened lower and continued to decline, currently trading at HKD 16.24, down 5.14%, after the company flagged a potential tax bill of up to RMB 500 million at its Inner Mongolia unit. The stock has fallen over 52% from its 52-week high of HKD 33.96 and is down 20.7% YTD, trading below its 60-day moving average of HKD 18.654, despite a Buy rating from Morgan Stanley and a projected 154-177% surge in first-half net profit to as high as RMB 2.4 billion.

Chuangxin Industries opened lower and rallied during the morning session, trading at HK$17.27 as of 10:12 BJT, up 4.54%, driven by Morgan Stanley's Buy rating and the company's forecast of a 154%-177% surge in interim net profit. The stock rebounded from the day's low of HK$16.41 to a high of HK$17.35, a 5.72% intraday swing, with turnover of approximately HK$16.72 million. The price has reclaimed its 20-day MA (HK$15.537) but remains 49.06% below the 52-week high of HK$33.96 and below the 60-day MA (HK$18.803), with a YTD decline of 15.53%. Full-year 2025 net profit rose 32.8% to RMB 2.731 billion, with a final dividend of HK$0.77 offering a ~4.45% yield. Nevertheless, lingering tax issues at its Inner Mongolia unit and previous appearances on the top losers list suggest lingering market concerns over earnings sustainability.

Chuangxin Industries opened lower and continued to decline in the morning session, falling 5.06% to HK$15.57 by 10:44 BJ time, with the intraday range from HK$16.37 to HK$15.57, nearing its 52-week low of HK$13.46. Despite a positive profit alert forecasting first-half net profit between RMB 2.2 billion and RMB 2.4 billion, up 154.1%-177.2% year-on-year, the stock remains under pressure due to concerns over a potential tax bill of up to RMB 500 million at its Inner Mongolia unit. The stock has fallen 23.97% year-to-date from its starting price of HK$20.48, and is trading well below its 60-day moving average of HK$19.502, sitting 54.15% below its 52-week high of HK$33.96. While Morgan Stanley issued a Buy rating, no specific target price was provided, though a previous 'Outperform' call from a major bank set a target of HK$33. However, the company's recent large-scale acquisitions of alumina and coal assets (over RMB 1.5 billion) and potential dilution from equity raising have weighed on sentiment.

Chuangxin Industries closed down 2.48% at HK$16.53, tracing a single-day decline pattern. The intraday low of HK$16.38 is only 22% above the 52-week low of HK$13.46, while it remains 51.68% below the 52-week high of HK$33.96. The company flagged a 154%-177% jump in interim net profit to RMB 2.2-2.4 billion, yet the market overlooked the strong earnings guidance, likely due to a concurrent tax claim of up to RMB 500 million at its Inner Mongolia unit. YTD the stock is down 19.87%, currently trading above the 20-day moving average (HK$15.502) but well below the 60-day MA (HK$19.713), suggesting near-term support but a downtrend in the medium term. Though Morgan Stanley initiated with a Buy rating and a target price of HK$33, providing some cushion.