Yanheng Industrial Holdings (03628.HK) 2025 Performance and 2026 Outlook Analysis

Yanheng Industrial Holdings (03628.HK) is an industrial stock engaged in the manufacturing, sales, and related services of tobacco machinery. Its closing price on December 31, 2025, was HK$0.200 [0]. The stock price rose 66.67% for the full year of 2025, significantly outperforming the Hang Seng Index’s 28.89%, making it an outstanding individual stock of the year [1]. The interim results released in August 2025 showed that the company’s net profit increased by 72.8% year-on-year to HK$13.058 million, showing signs of recovery, while the full-year net profit in 2024 had decreased by 48.1% year-on-year [2]. In terms of trading volume, the volume on December 31, 2025, was 240,000 shares, higher than the 3-month average volume of 168,800 shares [3]. In addition, the company’s chairman, Liu Li, holds 74.63% of the shares, with highly concentrated control rights [4].

Although the Hong Kong stock market was closed on January 1, 2026, due to the New Year holiday, investors’ review of the top-performing stocks in 2025 during the holiday boosted the popularity of Yanheng Industrial Holdings. The significant improvement in the company’s interim results in 2025, compared with its performance decline in 2024, indicates that the business may have a positive turnaround. However, its small-cap nature (market capitalization of approximately HK$161 million) and highly concentrated control rights may affect its liquidity and corporate governance [5].

• Opportunities
  : The recovery in the interim results of 2025 provides potential for sustained growth in 2026. If the tobacco machinery business can develop stably, it is expected to further drive the stock price performance.
• Risks
  : The company relies on the tobacco machinery business and is greatly affected by policy changes in the tobacco industry [6]; its performance is highly volatile (a sharp decline in 2024 and a rebound in the interim of 2025); its small market capitalization and low average daily trading volume pose liquidity risks; the chairman holds more than 70% of the shares, and concentrated control rights may affect decision-making transparency [7].

• Ticker: 03628.HK, Name: Yanheng Industrial Holdings
• Full-year stock price increase in 2025: 66.67% (outperforming the Hang Seng Index by 28.89%)
• Interim net profit in 2025: +72.8% to HK$13.058 million
• Current price (December 31, 2025): HK$0.200
• 52-week price range: 0.101-0.300 HK$
• Market capitalization: Approximately HK$161 million
• Core risks: Industry policy, performance volatility, liquidity, concentrated control rights