Nanhua Financial (00619.HK) Hot Stock Analysis Report

Nanhua Financial (00619.HK) is a traditional financial services company that became a hot stock in Hong Kong in 2025 due to its business diversification transformation [2]. Key events include:

1. On November 6, 2025, its subsidiary plans to establish a joint venture to enter the overseas advanced technology-based security and anti-riot equipment market, and set up an overseas security and anti-drone system [1].
2. On November 14, 2025, it announced plans to establish a joint venture with a domestic Chinese enterprise to develop an AI drug R&D platform and an AI drug efficacy prediction platform to serve beauty customers, as well as layout disease and aging pipelines and anti-aging products [3].

These transformation initiatives have expanded the company from traditional financial services to high-growth high-tech fields, aligning with the policy direction of the national and Hong Kong SAR governments to promote the development of strategic emerging industries such as artificial intelligence and biomedicine [3]. In 2025, its stock price rose from approximately HK$0.216 at the beginning of the year to HK$0.395, an increase of 82.87%, significantly outperforming the Hang Seng Index’s 27.77%; on December 31, it rose by 6.76% in a single day to close at HK$0.395 [2].

1. Business transformation drives market attention
   : The company has transformed from traditional financial services to high-tech fields such as AI drug R&D and overseas security, breaking through the growth bottleneck of its original business and attracting investors’ attention to its future development potential.
2. High policy alignment
   : The company’s layout in AI drug R&D and security technology is in line with the policy direction of Hong Kong and the mainland to promote the development of strategic emerging industries, providing a favorable external environment for its transformation.
3. Liquidity risk requires attention
   : Despite the strong stock price performance, the company’s stock trading volume is low. Only 23,000 shares were traded on December 31, far below the average trading volume of 286,945 shares, with a turnover rate of only 0.01% [2]. The stock price is easily affected by a small number of transactions.

• Transformation potential
  : Fields such as AI drug R&D and overseas security have high growth potential. If the transformation is successful, it is expected to bring new revenue and profit sources to the company.
• Policy support
  : Policy support for strategic emerging industries may provide favorable conditions for the company’s transformation.

• Transformation uncertainty
  : There are uncertainties in the R&D, market expansion, and profit prospects of new businesses, and the effect of the transformation has not yet appeared.
• Financial pressure
  : As of December 31, 2024, the company’s annual loss was HK$295 million, an increase year-on-year, and it was still in a loss state in the first half of 2025 [1].
• Low liquidity
  : The stock trading volume is low, and the liquidity risk is high.

Nanhua Financial (00619.HK) became a hot stock in Hong Kong due to its business diversification transformation. Its stock price rose by 82.87% in 2025, outperforming the Hang Seng Index. The company is actively laying out AI drug R&D and overseas security markets, aligning with policy directions, but the transformation still faces uncertainties, along with financial pressure and low liquidity risks. Investors need to pay attention to the company’s transformation progress, financial status, and changes in market liquidity.

Support level: The short-term support level may be HK$0.37 [1].
Resistance level: The short-term resistance level may be HK$0.475 (52-week high) [2].