SG MICRO

SG Micro surged 5.05% to HKD 88.50 by 13:13 BJ from the previous close of HKD 84.25, staging a rebound from the intraday low of HKD 80.850. The catalyst is the company's full exercise of the over-allotment option after being added to the Southbound Stock Connect list in March, coupled with GIC increasing its stake to 16.4%, while Q1 2026 revenue grew 47.23% YoY to HKD 1.24 billion and net profit soared 119.09% YoY to HKD 140 million. However, the stock remains 37.81% below its 52-week high of HKD 142.30 and trades below both MA20 (HKD 93.53) and MA60 (HKD 100.78), with a YTD decline of 29.37%, suggesting technical weakness ahead.

SG Micro opened lower and reversed higher, closing up 4.55% at HKD 83.85, driven by a semiconductor sector rally and GIC's continued stake accumulation. The stock bottomed at HKD 79.30 before rebounding, hitting an intraday high of HKD 83.85 in the afternoon session, with a 5.67% intraday range. Q1 2026 revenue grew 47.23% YoY to HKD 1.245 billion, while net profit surged 119.09% YoY. However, the stock remains 41.08% below its 52-week high of HKD 142.30 and trades below its 20-day MA of HKD 94.77, suggesting valuation recovery is still in progress. Meanwhile, the placement of 8.1 million H shares at HKD 85.20 each may add near-term supply pressure.

SG Micro (3661.HK) fell sharply by 5.8% during the morning session in Hong Kong, driven by the end of the stabilization period and full exercise of the over-allotment option, raising concerns about near-term selling pressure. Despite Q1 revenue surging 47.23% YoY to HKD 1.245 billion and net profit jumping 119.09% YoY to HKD 140.2 million, the stock opened lower at HKD 80.80 and slid to HKD 78.20, now 45.05% below its 52-week high of HKD 142.3 and trading below both the MA20 (HKD 96) and MA60 (HKD 101.8), with YTD decline of 37.59%. However, the stock was added to the Southbound Stock Connect eligible securities list, and GIC previously raised its stake to over 16%, which may offer some support.

SG Micro opened HK morning session at HKD 86, quickly retreated to HKD 84.55, and closed at HKD 84.6, up 8.46% from prior close of HKD 78, with intraday range of 5.4%. The rally was driven by its addition to the Southbound Stock Connect eligible securities list and GIC's continued accumulation of semiconductor stocks, with GIC having raised its stake to 16.4%. Q1 revenue surged 47.23% YoY to HKD 1.245 billion, net profit jumped 119.09% YoY, and EPS reached HKD 0.2239 with ROE of 9.19%. However, the stock at HKD 84.6 remains 40.55% below its 52-week high of HKD 142.3 and trades below both the 20-day MA (HKD 98.045) and 60-day MA (HKD 102.824), with YTD loss of 32.48% and volume of only 8,900 shares, indicating cautious follow-through.

3661.HK opened higher at HK$96.75 but then reversed sharply, hitting an intraday high of HK$96.30 before sliding to HK$90.75 (intraday low), closing the morning session 6.24% below the previous close of HK$96.90 on thin volume of 9,100 shares (turnover rate 0.03%). The sell-off was primarily driven by the end of the stabilization period and full exercise of the over-allotment option, along with weakness in the broader semiconductor sector (e.g., Sungrow Power dropped over 10%). Despite the weak price action, Q1 2026 revenue rose 47.23% YoY to HK$1.245 billion, net profit surged 119.09% YoY to HK$140.2 million, and EPS grew 116.66% YoY, indicating strong fundamental improvement. However, the stock remains below its 20-day MA (HK$103.92) and 60-day MA (HK$105.49), with a YTD decline of 27.49% and a 36.16% discount from its 52-week high of HK$142.30. While a near-term overhang persists, the stock's inclusion in the Southbound Stock Connect eligible securities list may attract fresh buying interest.