VICTORY SEC

Victory Securities opened lower and continued to decline in the morning session, falling from HKD 4.45 to HKD 4.29, a drop of approximately 3.3%. The decline was mainly driven by ongoing market concerns over option share issuances and an executive director's share reduction. The company recently disclosed the issuance of 199,000 new shares via option exercise, while Executive Director Zhao Ziliang reduced his holdings by 30,000 shares at HKD 7.19, raising dilution worries. Despite Q4 revenue surging 94.78% YoY to HKD 40.99 million and net profit skyrocketing 630.87% YoY to HKD 9.56 million, with a PE of only 15.13x, the stock has fallen 45.7% from its 52-week high of HKD 7.9 and trades below the 20-day moving average of HKD 4.454, indicating that strong fundamentals have yet to be fully reflected in the price. However, the recent approval of a virtual asset trading license for its subsidiary VDX by the Hong Kong SFC could provide a strategic growth catalyst.

Victory Securities opened higher and trended upward in the afternoon session, closing at HKD 4.45, up about 3.2% on the day, with an intraday range of HKD 4.30 to HKD 4.45. The rally was driven by news that its subsidiary VDX received a virtual asset trading platform license from the Hong Kong SFC, the first such approval since June 2024. The company's Q4 2025 operating revenue grew 94.78% YoY to HKD 40.99 million, net profit surged 630.87% to HKD 9.56 million, and EPS reached HKD 0.0482, reflecting strong fundamental improvement. However, the stock remains below its previous 52-week high, and earlier headlines about suspending crypto trading for mainland users had weighed on sentiment, suggesting today's upward move is more of a specific catalyst-driven response.