Hot Stock Analysis: Hong Kong Technology Exploration (01137) - Retail Strategy and Performance Review

Hong Kong Technology Exploration (01137), a hot Hong Kong stock, focuses on its core business as the online retail platform HKTVmall, which is at the forefront of digital transformation in Hong Kong’s retail industry [0]. The strategy of “defeating physical retail stores” proposed by the company’s chairman Wong Wai-kei reflects the competitive situation between online and offline retail [1]. In October 2025, the platform’s order merchandise transaction volume reached HK$688 million, increasing by 6% month-on-month but still decreasing by 4.3% year-on-year, indicating that although the business shows signs of short-term recovery, long-term growth faces challenges [2]. Financially, the company’s current market capitalization is HK$1.175 billion, with a stock price of HK$1.49 (52-week range: HK$1.18-HK$2.36) [3]. Earnings per share are -HK$0.08, but it holds HK$442 million in cash and has a leveraged free cash flow of HK$139.9 million, so its cash flow situation is relatively healthy [0].

1. Retail Model Conflict
   : Wong Wai-kei’s strategy highlights the fierce competition between online and offline in Hong Kong’s retail market [1]. The company attempts to seize market share through innovative models such as HKTVmall and GreenLab (e.g., selling near-expiry products) [0].
2. Performance Differentiation
   : The stock price has risen by 4.2% year-to-date and 30.46% over one year [0], but the year-on-year decline in e-commerce transaction volume reflects uncertainty in business growth [2].
3. Alignment with Industry Trends
   : The trend of Hong Kong’s retail industry shifting online provides development space for the company, but the sector as a whole faces pressure from competition and slowing consumption [0].

• Sustained loss status (earnings per share of -HK$0.08) may affect investor confidence [0].
• The 4.3% year-on-year decline in e-commerce transaction volume indicates weak business growth [2].
• The online retail sector is highly competitive, and the consumption environment has high uncertainty [0].

• Long-term trend of increasing online retail penetration in Hong Kong [1].
• Innovative business models (such as GreenLab) may open up new growth points [0].
• Healthy cash flow supports business transformation [0].

Hong Kong Technology Exploration (01137) is an e-commerce enterprise attracting attention in the Hong Kong stock market. Its disruptive strategy and business dynamics reflect the transformation pains of Hong Kong’s retail industry. Despite facing short-term performance challenges and sustained losses, the company has certain advantages in cash flow and innovative attempts. Investors need to pay attention to the sustainability of its business model and changes in the industry competition pattern [0,1,2,3].