SENIOR MATERIAL

Starway Material opened low and rallied during the morning session in Hong Kong, climbing from HKD 7.33 to close at HKD 7.52, up 5.17%, driven by Fidelity buying and governance overhaul news. Despite a 33.65% YoY decline in Q1 2026 net profit to HKD 33.19 million, operating revenue rose 28.65% YoY to HKD 1.225 billion and operating profit increased 19.19% YoY, supporting the rebound. The stock at HKD 7.52 remains 43.92% below its 52-week high of HKD 13.41 and trades below both the MA20 (HKD 8.22) and MA60 (HKD 8.69), indicating a weak price position, though recent Fidelity stake increase signals renewed institutional interest.

Starway Material experienced a single-session decline in the morning session, closing at HK$7.39, down 5.01% from the previous close of HK$7.78, primarily driven by continued capital volatility following recent governance adjustments. The stock had gained over 15% cumulatively from July 18-22 on news of Fidelity's stake increase and governance reforms, but today's session erased those gains, hitting an intraday low of HK$7.39. Q1 2026 revenue grew 28.65% YoY to HK$1.225 billion, but net profit fell 33.65% YoY to HK$33.19 million, highlighting persistent cost pressures. The current price is 44.89% below the 52-week high of HK$13.41, trading below both the 20-day (HK$8.649) and 60-day (HK$8.864) moving averages, with a P/E of 139.67x, though the P/B ratio stands at 0.99x, reflecting subdued market expectations for earnings recovery.

Shenzhen Senior Technology Material opened lower but rallied through the session, closing at HK$8.01, up 5.39% from yesterday's close of HK$7.60, driven by Fidelity's stake increase and governance overhaul announcements. The stock hit an intraday low of HK$7.58 at 09:49 BJ morning session before recovering, reaching a high of HK$8.01 in the afternoon. Despite recent gains from a trough of HK$7.25 after governance proposals, the stock remains 40.27% below its 52-week high of HK$13.41 and well below its 20-day MA (HK$8.757) and 60-day MA (HK$8.935). For Q1 2026, revenue rose 28.65% YoY to HK$1.23 billion, but net profit fell 33.65% YoY to HK$33.2 million, with a net margin of only 2.71%, highlighting profitability challenges. While the stock rebounded following positive news, it had suffered consecutive declines prior, leaving sustainability of the rally uncertain.

6067.HK opened lower and traded down 5.2% to close at HK$7.47, extending a recent weak trend amid profit-taking after Fidelity's stake increase. Despite Q1 2026 revenue growing 28.65% YoY to HK$1.225 billion, net profit plunged 33.65% YoY to only HK$33.2 million, with EPS of HK$0.0227, raising concerns about profitability. The stock is now 44.3% below its 52-week high of HK$13.41 and trades well below both its MA20 (HK$8.806) and MA60 (HK$8.97), indicating extreme technical weakness. However, recent governance amendments including the formation of a nomination committee could provide a foundation for future improvement.

Starway Material opened higher in the morning session and surged to HKD 7.75, closing up 5.01%, driven by news of a Fidelity stake increase, with active trading and turnover of HKD 3.74 million. Q1 revenue rose 28.65% YoY to HKD 1.225 billion, but net profit fell 33.65% YoY to HKD 33.19 million, with EPS of only HKD 0.0227, reflecting ongoing profitability pressures. The stock is now 42.21% below its 52-week high of HKD 13.41 and trading below both the 20-day MA (HKD 8.907) and 60-day MA (HKD 9.032), with a YTD decline of 29.55% and a high P/E of 146.47x, though recent governance overhauls and a battery storage fund deal with Farasis may provide some support.