TONGGUAN GOLD

Tongguan Gold traded in a narrow range during the morning session, with a single transaction at HKD 1.98, down 5.26% from the previous close of HKD 2.09. The weakness persists despite frequent recent share repurchases, as the stock has fallen 52.17% from its 52-week high of HKD 4.14 and is down 29.79% year-to-date. Fundamental performance remains strong — Q4 2025 net profit surged 309.29% YoY to HKD 243.9 million, revenue grew 81.15% YoY to HKD 683.7 million, and EPS reached HKD 0.0522 (+256.26% YoY). However, the stock continues to trade below its MA60 (HKD 2.169), though it is slightly above the MA20 (HKD 1.889). A recently approved repurchase plan of up to HKD 300 million may provide some support.

Tongguan Gold opened higher in the morning session and closed at HKD 2.02, up 3.06% from its opening of HKD 1.96, with an intraday high of HKD 2.02 and low of HKD 1.95, forming a single-session uptrend. The stock benefited from the company's recent disclosure of share buybacks at average prices between HKD 1.73 and HKD 1.84, which provided support. Fundamentals remain robust: Q4 2025 revenue reached HKD 684 million (+81.2% YoY), net profit HKD 244 million (+309.3% YoY), net margin 35.7%, and EPS HKD 0.0522 (+256.3% YoY). However, the price position remains weak: YTD is down 28.4% and the stock is 51.2% below its 52-week high of HKD 4.14. While the current price of HKD 2.02 sits above the MA20 (HKD 1.86), it is still below the MA60 (HKD 2.20), indicating short-term support but an unhealed medium-term trend.

China金石矿业 staged a sharp afternoon rally to close up 8.0%, reversing a morning session that bottomed at HKD 1.760 before a single-leg climb to HKD 1.890, with total turnover of 7.08 million shares. The rebound was fueled by Q4 net profit surging 309% YoY to HKD 243.9 million, operating profit jumping 217% to HKD 327.9 million, and EPS of 0.0522 (up 256%), underpinned by a 35.7% net margin. However, the stock remains 56.5% below its 52-week high of HKD 4.14, trades under its 20-day MA of HKD 1.844, and has a YTD decline of 36.2%.

Tongguan Gold (340.HK) staged a morning session low-to-high rally, closing 5.95% higher at HKD 1.96, with an intraday range of 7.65% between HKD 1.830 low and HKD 1.970 high — the widest single-day range in nearly two months. The rebound from the prior close of HKD 1.850 was primarily driven by a series of recent share buybacks, with five HKEX next-day disclosure returns filed over the past week at average prices between HKD 1.69 and HKD 1.79, the latest disclosed on July 10. Fundamental support stems from a stellar Q4 2025 earnings report: net profit surged 309.29% YoY to HKD 243.9 million, revenue jumped 81.15% to HKD 683.7 million, net profit margin reached 35.67%, and EPS rose 256.26% YoY to HKD 0.0522, bringing the P/E ratio down to 12.52x. However, the P/B ratio of 2.61x against a total market cap of ~HKD 10.4 billion suggests valuation premiums persist.

Tongguan Gold closed at HKD 1.85, down 5.13% from the prior close of HKD 1.95, in a session marked by an intraday reversal: opened at HKD 1.91, slid to HKD 1.88 in the morning, and then weakened further to the day's low of HKD 1.85 in the afternoon; turnover was 2.684 million shares and HKD 5.06 million. The company's recent spate of buybacks—reported at average prices of HKD 1.69-1.79 and a HKD 300 million authorized repurchase plan—failed to lift sentiment, as the stock's YTD decline of 34.4% and 55.31% discount to its 52-week high of HKD 4.14 weighed. Fundamentals have improved sharply: Q4 2025 net profit rose 309% YoY to HKD 243.9 million, with EPS of HKD 0.0522 and net margin of 35.67%. Nevertheless, the stock remains below both its 20-day MA of HKD 1.857 and its 60-day MA of HKD 2.436, suggesting that the valuation has yet to catch up with earnings momentum.