03628.HK (Renheng Industrial Holdings) Analysis: Hot Stock Momentum vs. Technical Risks

03628.HK (Renheng Industrial Holdings) appeared on the HK market’s surge list (source: Tushare dc_hot, 东方财富App热榜) [0]. There is confusion around the stock code: while it is associated with Renheng Industrial Holdings, it is also linked to Longfeng Group, a local chain pharmacy that has applied for listing but not yet officially listed [1].

The stock has seen strong momentum driven by several factors:

1. Profit Growth
   : Expected mid-term post-tax profit of HK$1200-1500 million, representing a 60-100% year-on-year increase [3].
2. Price Surge
   : Hit a 52-week high with a 20% gain from HK$0.23 to HK$0.30 [4].
3. Market Trend
   : Benefited from the 2025 HK small-cap stock boom [5].
4. Technical Breakout
   : Early technical signals indicated a breakout, attracting investors [0].

Despite the positive momentum, the stock has formed a “death cross” technical pattern (short-term moving average crossing below long-term), which is a bearish signal [2].

Longfeng Group, a local chain pharmacy operator, has applied for listing on HKEX with the code 03628.HK but has not yet been officially listed. Its last fiscal year profit was HK$170 million, up 18% year-on-year [1].