CCTC

6951.HK opened weak and trended lower in the morning session, trading at HK$99.35 as of 09:30 BJ, down 4.38% from the previous close of HK$103.9, with an intraday range of HK$98.5 to HK$102.9. The single-direction decline was primarily driven by the market's digestion of dilution concerns from the recent HK$2.35 billion placement and convertible bond issuance, added to persistent price pressure. Despite Q1 2026 net profit surging 57.19% YoY to HK$897 million and revenue growing 54.82% with a net margin of 29.5%, the stock has fallen below the 20-day MA of HK$100.218, with YTD loss of 5.38% and trading 18.7% below its 52-week high of HK$122.2. Elevated valuation multiples (PE 60.62x, PB 7.79x) have tempered the support from strong earnings. However, the company's earlier guidance of 45-65% H1 profit growth and the absence of fresh intraday lows suggest market sentiment may need time to fully absorb the capital-raising overhang.

Chaozhou Three-Circle (6951.HK) opened higher and strengthened through the morning session, closing the morning up approximately 4.4% at HKD 103, driven by the company's H1 2025 profit guidance released yesterday. The company expects a 45%-65% surge in net profit for the first half, with Q1 2026 already showing a 57.19% YoY net profit increase to HKD 897 million and revenue up 54.82% to HKD 3.04 billion, yielding a net margin of 29.5%. The stock rebounded from a morning low of HKD 100 to an intraday high of HKD 103, yet remains 16.28% below its 52-week high of HKD 122.2 and is down 2.57% YTD. Strong demand for MLCC and optical communication components is a key catalyst, though the stock had previously hit a record low of HKD 86.45 amid dilution concerns.

6951.HK opened higher and surged during the morning session, hitting an intraday high of HKD 103.4 (up over 14% from the previous close of HKD 90.5), but the stock steadily retreated in the afternoon to close at HKD 100.3, still up 10.8% on the day, with total turnover of approximately HKD 193 million. The rally was primarily driven by a bullish H1 profit outlook and renewed demand expectations for MLCC and optical components. Earnings data showed Q1 2026 revenue grew 54.82% YoY to HKD 3.04 billion, while net profit rose 57.19% YoY to HKD 897 million, with a net profit margin of 29.5%. Despite the strong rebound, the stock remains 17.92% below its 52-week high of HKD 122.2 and is down 4.48% year-to-date, though it has decisively reclaimed the 20-day moving average (around HKD 99.99). However, lingering concerns over dilution from a recent capital raise (which had previously driven the stock to a 52-week low of HKD 86.45) continue to cap upside momentum.

Sanhuan Group closed at HKD 90.000 in Hong Kong trading on July 17, down 8.16% from the previous close of HKD 98.000, in a single-day downward trend, primarily driven by lingering dilution concerns after its recent placement and convertible bond financing. The stock briefly hit an intraday high of HKD 94.200 in the morning session before retreating, with losses widening in the afternoon to a new all-time low of HKD 88.000. Despite strong Q1 2026 results—revenue and net profit up 54.82% and 57.19% YoY respectively, with a net profit margin of 29.5%—the stock remains below its MA20 and MA60 (both at HKD 101.157), down 26.35% from its 52-week high of HKD 122.200 and 14.29% year-to-date. However, a brief bounce during the session suggested some bottom-fishing activity.

Sanhuan Group fell 5.3% to close at HK$97.7, breaching the prior close of HK$103.2, with an intraday range of 5.5% after hitting a high of HK$103.2 in the morning. Despite strong Q1 results—revenue up 54.82% YoY to HK$3.04B, net profit up 57.19% YoY to HK$897M, EPS rising 55% to HK$0.4648, and net margin improving to 29.5%—the stock came under pressure from dilution concerns following the HK$2.35B placement and convertible bond issuance, as well as fading CPO hype. The afternoon session saw the low reach HK$97.75, about 5.6% below the recent high of HK$103.5. However, with a PE of 59.6x and PB of 7.7x, the valuation remains elevated, and the market is still digesting near-term profit-taking.