Dazhong Public Utilities (01635.HK) Hong Kong Hot Stock Analysis Report

: Dazhong Public Utilities (01635.HK) is a public utility enterprise engaged in gas supply, sewage treatment, public infrastructure projects, and investment financial services [0]. As of December 24, 2025, the H-share price was HK$3.34, down 0.89% from the previous trading day [5]; the A-share (600635.SH) price was RMB 6.44, with the H-share trading at a premium of approximately 112.66% over the A-share [5].

: The main catalysts for this stock becoming a hot Hong Kong stock include three aspects:

1. Award Recognition
   : On December 22, 2025, Dazhong Public Utilities won the Gelonghui ‘Golden Grid Award’ for Annual A+H Excellent Enterprise, and the company’s chairman Yang Guoping also won the Annual Excellent Leader Award. This award recognizes outstanding A+H dual-listed companies from multiple dimensions such as business growth, financial stability, and corporate governance [2].
2. Better-than-expected Q3 Performance
   : The first three quarters’ financial report disclosed on October 30, 2025, showed that the company’s operating revenue reached 4.596 billion yuan, and the net profit attributable to shareholders of the listed company was 520 million yuan, an increase of 205.14% year-on-year, far exceeding market expectations [3].
3. High Proportional Holdings by Southbound Funds
   : As of December 23, 2025, Dazhong Public Utilities’ holding ratio in the Hong Kong Stock Connect reached 68.82%, ranking third in the Hong Kong Stock Connect holding ratio, indicating high attention from mainland investors [4].

: The high holding ratio of southbound funds indicates active market trading [4]. The award has enhanced the company’s visibility and reputation in the capital market [2], while the better-than-expected performance has strengthened investor confidence [3]. Multiple factors have jointly driven market attention to this stock.

1. Synergy between Fundamentals and Market Recognition
   : Dazhong Public Utilities’ high Q3 performance growth (net profit increased by more than 200% YoY) [3] and winning the ‘Annual A+H Excellent Enterprise Award’ [2] form dual support from fundamentals and market recognition, which may be the core reason for attracting large-scale increases in holdings by southbound funds [4].

2. Dual Impact of A/H Premium
   : The high premium of H-shares over A-shares (about 112.66%) [5] reflects the enthusiasm of the Hong Kong market for this stock, but it may also become a limiting factor for future gains. Investors need to pay attention to changes in the premium level.

3. Policy Sensitivity of the Public Utility Industry
   : As a public utility enterprise, the company’s business is greatly affected by factors such as gas price adjustments and environmental policy changes, which are key risk points that need to be focused on for long-term investment [0].

:

1. Premium Risk
   : The H-share has a high premium over the A-share, which may limit future stock price increases [5].
2. Industry Policy Risk
   : The public utility industry is greatly affected by policies, such as gas price adjustments and environmental policy changes, which may have an adverse impact on the company’s performance [0].
3. Performance Sustainability Risk
   : It is necessary to pay attention to whether the company’s subsequent quarterly performance can maintain a high growth trend [0].
4. Market Volatility Risk
   : The Hong Kong stock market is highly volatile, and short-term sentiment-driven stock price fluctuations need to be vigilant [0].

:

1. Award Effect
   : Winning the Annual A+H Excellent Enterprise Award has enhanced the company’s visibility in the capital market and may attract more investor attention [2].
2. Sustained Inflow of Southbound Funds
   : Currently, the holding ratio of southbound funds has reached 68.82% [4]. If mainland investors’ interest in Hong Kong stocks continues, it may further drive the stock price.
3. Solid Fundamentals
   : The better-than-expected Q3 performance shows that the company’s operating conditions are good. If subsequent performance maintains stable growth, it will provide support for the stock price [3].

Dazhong Public Utilities (01635.HK), as a hot Hong Kong stock, owes its popularity mainly to award recognition, better-than-expected Q3 performance, and high proportional holdings by southbound funds. The company has solid fundamentals and improved market recognition, but also faces challenges such as excessive A/H premium and industry policy risks. Investors should comprehensively consider these factors, pay attention to the company’s subsequent performance, policy changes, and the dynamics of southbound funds, and objectively evaluate investment risks and opportunities.