HK Hot Stock Analysis: Jiujiu Wang (01927.HK)

Jiujiu Wang (01927.HK) is a candy manufacturer from Jinjiang, Fujian, focusing on chewing gum and candy products, listed in 2021 [1]. Recently, the stock entered the Hong Kong stock market surge list, mainly driven by the technical “range breakout” pattern; the stock price broke through the previous trading range, releasing a positive signal [1].

1. Divergence between technical and fundamental aspects
   : Although the technical side shows a bullish signal and the stock price has performed strongly in the short term (up 16.535% in the past 10 days, 1.370% in 3 days, 2.069% in 5 days) [1], the company’s fundamentals are weak, recording its first net profit loss since listing in 2024 [2]. This divergence requires investors’ attention.

2. Industry competition pressure
   : As one of the Jinjiang candy enterprises, Jiujiu Wang and competitors like Crayon Shin-chan Food face homogeneous competition, while also having to deal with industry structure changes after Nestle acquired Hsu Fu Chi [2], which brings challenges to the company’s long-term development.

3. Trading volume and liquidity
   : The trading volume on the latest trading day was 400,000 shares, with a turnover of 58,900 HKD [1]. The trading volume is relatively low, so investors need to be alert to the risk of stock price fluctuations.

• Risks
  : Operational pressure caused by weak fundamentals [2], market share challenges brought by fierce industry competition [2], and significant stock price fluctuations possibly triggered by low trading volume [1].
• Opportunities
  : After the technical breakout, if trading volume continues to increase, the stock price may rise further; the company can enhance market competitiveness through product innovation and differentiated competition.

Jiujiu Wang (01927.HK) has become a recent hot Hong Kong stock due to technical breakout, with strong short-term stock price performance, but faces weak fundamentals and industry competition pressure. Investors need to pay attention to the change in trading volume after the technical breakout, while evaluating the possibility of the company’s fundamental improvement.