Melco International Development (00571.HK) Hong Kong Stock Hot Stock Analysis

Melco International Development (00571.HK) is a low-market-cap company in Hong Kong’s media and entertainment sector, with core businesses covering film and television production and distribution, music, concerts, artist management, and cinema operations [2]. The stock entered the East Money App’s Hong Kong Stock Surge List on December 22, 2025, attracting market attention.

1. Technical Pattern Signal
   : On November 19, 2025, technical analysis showed the stock formed a ‘Golden Cross’ pattern (10-day moving average crossed above the 20-day moving average), usually considered a short-term bullish signal [3].
2. Fundamental Improvement
   : On October 21, 2025, the company released its annual results—loss narrowed by 95% year-on-year (from HK$511 million to HK$12.8 million), mainly due to the reversal of right-of-use asset and property impairment provisions [3].
3. Sector Sentiment
   : Hong Kong’s stock market performed strongly overall in December 2025, and the media and entertainment sector may have been driven by market sentiment.

• 52-week price range: HK$0.040-HK$0.078, current price: HK$0.040 [4];
• Year-to-date gain: 24.53%, average trading volume: ~868,400 shares. As a low-market-cap stock (~HK$70.24 million [4]), it has high volatility, with a 5-year Beta value of -0.22 and low correlation with market indices [4].

• Technical signals bring short-term bullish sentiment;
• Being on the hot list reflects a significant increase in retail investor attention, but no obvious institutional participation records were found.

1. Volatility Characteristics of Low-Market-Cap Stocks
   : Melco International Development has a market cap of ~HK$70.24 million, a typical low-market-cap stock. Its price is easily affected by small funds, leading to large fluctuations and high liquidity risk [4].
2. Lack of Clear Catalyst for Short-Term Surge
   : Although there was support from technical signals and fundamental improvements earlier, as of the analysis, no clear news or announcements directly related to the December 22 surge were found—price increases may lack substantive drivers [0].
3. Retail-Dominated Trading Features
   : Hot list exposure increased retail attention, but insufficient institutional participation may exacerbate the uncertainty of short-term price fluctuations.

• Valuation Risk
  : Negative price-to-earnings ratio, unstable profitability [0];
• Liquidity Risk
  : Relatively small trading volume may lead to sharp price fluctuations [4];
• Information Transparency Risk
  : Lack of clear news support for the short-term surge, leading to message uncertainty [0];
• Fundamental Risk
  : Although the company’s losses have narrowed, it has not yet turned profitable, and long-term development is uncertain [3].

• The overall positive sentiment of the Hong Kong stock market and media entertainment sector may bring short-term emotional support to the stock [0];
• The short-term bullish signal from the technical pattern may attract the attention of technical investors [3].

As a low-market-cap media and entertainment stock in Hong Kong, Melco International Development has become popular due to a short-term price surge. The ‘Golden Cross’ technical pattern, narrowing fundamental losses, and sector sentiment may be early supporting factors, but the December 22 surge lacks direct news catalysts. The stock has risks such as negative valuation, low liquidity, and unprofitable fundamentals—investors should treat it cautiously, pay attention to subsequent announcements and market dynamics, and control risks.