Analysis of Huaxin Holdings (01657.HK) 2025 Share Price Surge: Resonance of Performance Drivers and Market Rotation

This analysis is based on information from the Hot List of the East Money App (Hong Kong Stock Market Surge List)[0]. Huaxin Holdings (01657.HK) has shown strong share price performance since 2025, with a YTD increase of 83.52% as of the analysis date[0]. Its share price trend can be referenced in the real-time trading chart[1]. The share price surge is mainly driven by two factors: significant improvement in the company’s own performance and a shift in market style from high-valued sectors to low-valued small-cap value stocks[3].

As a garment manufacturing enterprise, Huaxin Holdings (01657.HK) reported a 25.1% year-on-year increase in interim revenue to HK$1.54 billion in 2025, with significantly improved operating cash flow[0]. The company’s main business is divided into three segments: traditional garment supply (63.2%), new retail garment supply (29.54%), and institutional catering services (7.26%), of which garment-related businesses account for a total of 92.74%[4]. Its main markets are concentrated in the UK (49.15%) and the US (32.95%), directly benefiting from the recovery of global consumer demand and improved export environment[0].

From the market perspective, in 2025, funds flowed out of high-valued sectors such as AI and PCB, shifting to low-valued small-cap value stocks with solid fundamentals[0]. At the same time, the garment manufacturing sector performed outstandingly overall, with an average net profit growth rate of 63% for OEM manufacturing businesses[7], providing industry-level support for the company’s share price.

The continuous rise in the company’s share price is the result of multiple factors resonating: First, the recovery in demand from export markets (UK and US) directly drives the growth of core businesses; Second, under the background of market style shift, low-valued small-cap stocks are favored by funds; Third, the overall high prosperity of the garment manufacturing industry further strengthens the company’s growth expectations[3].

: The recovery of global consumer demand and improved export environment will continue to benefit the company’s core business; if the trend of market style shift continues, small-cap value stocks are expected to continue to receive capital attention[0].
: Need to pay attention to potential risks such as fluctuations in global consumer demand, policy changes in major export markets, and intensified industry competition[0].

The strong performance of Huaxin Holdings (01657.HK)'s share price in 2025 stems from the dual drivers of performance improvement and market rotation. The company has solid fundamentals, its core business directly benefits from export recovery, and it aligns with current market style preferences. Investors can continue to pay attention to the company’s subsequent performance and changes in industry trends[0].