Analysis of HK Technology Exploration (01137.HK): Contradictory Signals Between Short-Term Stock Price Fluctuations and Long-Term Market Cap Decline

As a leading local e-commerce company in Hong Kong, HK Technology Exploration (01137.HK) focuses on its core business—the HKTVmall online shopping platform [0]. According to Yahoo Finance data [1] and internal analysis [0], the stock recently recorded a 15% short-term increase due to the major shareholder’s commitment not to sell shares within two years, but its long-term performance remains weak: from 2021 to 2025, its market capitalization dropped from HK$7.98 billion to HK$1.14 billion, with a cumulative decline of 85.7% [3]. The market cap fell by 51.1% in 2024 and continued to drop by 0.66% in 2025 [3], indicating a sustained downward trend. Although the company reported an interim profit of HK$66.7 million [0] and has recruited 100 live streaming hosts and collaborated with the Vocational Training Council to develop e-commerce talents [2,4], the market response has been flat, failing to reverse the downward stock price trend [0].

1. Divergence Between Short-Term Signals and Long-Term Trends
   : The short-term 15% stock price increase contrasts sharply with the long-term 85% market cap plunge, reflecting that market concerns about the company’s long-term prospects have not been eliminated by short-term positive factors.
2. Disconnect Between Business Expansion and Market Confidence
   : The company’s layout in the live streaming e-commerce sector (recruiting hosts, talent development) shows its willingness to expand, but this has not translated into stock price growth momentum, suggesting investors are skeptical about its profit model or execution capabilities [0,4].
3. Sustained Market Cap Shrinkage
   : Over four years, the market cap dropped from nearly HK$8 billion to HK$1.1 billion, indicating the company’s value is continuously undervalued by the market or there are unresolved core issues [3].

• The long-term market cap decline trend remains unchanged, and short-term gains may be unsustainable [3].
• If business expansion investments (e.g., live streaming team) fail to drive significant revenue growth, financial pressure will further intensify [0].
  
  Opportunities
  :
• The growth potential of live streaming e-commerce in the Hong Kong market (e.g., market opportunities [2]) provides a transformation契机 for the company; if it can effectively use live streaming to enhance HKTVmall’s user stickiness and sales, it may reverse the downward trend.
• Collaboration with educational institutions helps build talent reserves to support future business development [2].

HK Technology Exploration (01137.HK) faces a contradictory situation of short-term positive factors and long-term weakness. Although the major shareholder’s shareholding commitment has boosted short-term stock prices and the company is actively布局 in live streaming e-commerce, sustained market cap shrinkage and market doubts about the effectiveness of its business transformation remain major challenges. Investors need to pay attention to the actual performance of the company’s future live streaming business and revenue growth to determine whether a trend reversal occurs [0,3,4].