SOFTCARE

Softcare opened higher and rallied 4.9% to close at HK$33.50, driven by strong 1H FY26 results: revenue rose 31% YoY to US$332.75 million and net profit surged 46% to US$75.82 million, beating the profit guidance floor of US$73 million. The stock hit an intraday high of HK$33.70 after opening at HK$32.54, with a low turnover rate of 0.14% indicating limited selling pressure. Current price position relative to 52-week high/low is unavailable, but the stock trades at ~4x PB and ~18x PE. Huatai Securities and Orient Securities previously reiterated buy ratings, though no specific target price adjustments were disclosed.

Softcare opened lower and continued to decline in the morning session, hitting an intraday low of 32.32 HKD, down 5.3% from the previous close of 34.12 HKD, with 880k shares changing hands, marking a significant volume uptick. The sell-off came after the company released its 1H profit forecast on the previous evening, guiding a net profit of at least US$73 million, up at least 40% YoY; however, the strong earnings guidance failed to buoy the price, triggering profit-taking instead. The stock broke below its 20-day moving average (34.12 HKD) and now sits 12.17% below its 52-week high of 36.80 HKD, though it is still up 3.13% YTD and well above its 60-day moving average (29.44 HKD) and 52-week low (23.86 HKD). Despite the price weakness, analysts such as Huatai Securities and Orient Securities maintain Buy ratings, reflecting a generally positive fundamental outlook.

Softcare (2698.HK) spiked 5.3% in the morning session, climbing from its opening price of HK$31.82 to a high of HK$33.28, driven by a positive profit alert: the company guided for 1H net profit of at least US$73 million, representing YoY growth of at least 40%. Recent broker endorsements from UBS, CGS, and HTSC (which raised its target price to HK$44) further fueled the rally. However, the stock still trades 9.6% below its 52-week high of HK$36.8 and well above its 20-day MA of HK$27.23, suggesting the current valuation has already priced in some of the growth, while the intraday trading range of HK$31.2–HK$33.28 reflects ongoing investor debate.

Softcare opened lower and staged a morning rally to as high as HK$29.78 before retreating, settling at HK$29.06, down 0.75% from the previous close of HK$29.28. The company reported a 27.4% increase in net profit to US$121 million for 2025 and proposed its first final dividend of 8.88 US cents per share, while its controlling shareholder recently raised its stake. Multiple analysts, including UBS and CGS International, reaffirmed their Buy ratings. However, the stock trades below the 20-day MA (HK$26.744) and 60-day MA (HK$27.183), with a YTD decline of 7.08% and a 20.87% discount from its 52-week high of HK$36.8, suggesting the positive earnings surprise has yet to be fully priced in.

Softcare Limited staged a single-session rally today, closing up 2.43% at HKD 29.50, snapping a previous losing streak, driven by the company's announcement that a subsidiary has entered into FX forward contracts to hedge currency risk, alongside multiple brokerage reaffirmations of Buy ratings. The stock opened at a low of HKD 27.46 and climbed steadily, hitting an intraday high of HKD 29.86 in the afternoon session, with a daily range of 8.7%. While the current price remains 19.84% below the 52-week high of HKD 36.8, it has reclaimed both the 20-day (HKD 26.636) and 60-day (HKD 27.169) moving averages, and is up 23.64% from the 52-week low of HKD 23.86. The YTD decline has narrowed to 5.87%, though the full-year trajectory remains under repair; however, the company reported a 27.4% net profit increase to USD 121 million for 2025 and proposed a maiden final dividend of 8.88 cents per share, underpinning fundamentals with a PE of around 19.4x.