Cuihua Holdings (01314.HK) Reasons for Being on the Hong Kong Stock Surge List and Analysis

Cuihua Holdings (01314.HK) is a chain restaurant enterprise operating in Hong Kong, mainland China, Macau, and Singapore [0]. On December 22, 2025, this stock was listed on the Hong Kong Stock Surge List of the East Money App [1], mainly driven by the following factors:

1. Business Expansion Strategy
   : On December 17, the company opened a new branch in Tsim Sha Tsui, the core tourist area of Hong Kong. This is another strategic layout after the reopening of the Central branch, aiming to seize the opportunity of Hong Kong’s tourism recovery [2].
2. Hong Kong Market Performance Improvement
   : The interim report as of September 30, 2025 shows that the company’s Hong Kong market revenue increased by 13.3% to HK$274.1 million, offsetting the 12.6% decline in revenue from the mainland China market, reflecting the strong recovery of the core market [3].
3. Technical Signal
   : AASTOCKS pointed out that the stock has a “triangle breakout” technical chart pattern, which is usually regarded as a bullish signal and has attracted short-term momentum investors [4].

From the perspective of stock price and valuation, as of December 22, Cuihua Holdings closed at approximately HK$0.158 [5], with a market capitalization of approximately HK$218.48 million. Valuation indicators show that the price-to-book ratio is 0.47 (below book value, indicating undervaluation), and the enterprise value/EBITDA is 2.29 (attractive valuation for operating income) [6].

• Benefit from Tourism Recovery
  : The new branch is located in the core tourist area of Tsim Sha Tsui, reflecting the company’s confidence in Hong Kong’s tourism recovery, which is a potential driver supporting future performance [2].
• Market Structure Differentiation
  : The performance differentiation between the Hong Kong market and the mainland China market (growth in the former, decline in the latter) indicates that the company’s business has regional risk exposure, and attention needs to be paid to the recovery of the mainland market [3].
• Technology-Driven Volatility
  : As a small-cap stock (approximately HK$218 million), technical signals have a significant impact on short-term stock price volatility, and investors need to be alert to changes in trading volume and momentum [4][5].

• Weak Mainland Market
  : The mainland market revenue decreased by 12.6% in the first half of 2025, mainly due to weak consumer spending and fierce competition, which is the main risk to the company’s overall performance [3].
• Low Profitability
  : The company’s gross profit margin is only 1.19%, and the return on assets is -0.29%, indicating limited profit level and asset utilization efficiency [6].
• Stock Price Volatility
  : The small-cap nature makes the stock vulnerable to short-term traders, leading to large price fluctuations [5].

• Hong Kong Tourism Recovery
  : The new branch is located in the core tourist area, which is expected to benefit from the sustained recovery of Hong Kong’s tourism industry [2].
• Attractive Valuation
  : The price-to-book ratio of 0.47 and enterprise value/EBITDA of 2.29 show that the company’s valuation is attractive, and potential investors can pay attention to signals of fundamental improvement [6].

Cuihua Holdings (01314.HK) was on the Hong Kong Stock Surge List on December 22, 2025, mainly driven by business expansion, improved Hong Kong market performance, and technical signals. Although the Hong Kong market performance is strong and the valuation is attractive, investors need to pay attention to risks such as the weak mainland market and low profitability. The technical “triangle breakout” signal may attract short-term investors, but the volatility brought by the small-cap nature also needs attention. Future development needs to focus on the driving effect of tourism recovery on the performance of new branches and the recovery of the mainland market.