Jiujuwang (01927.HK) Short-Term Trend and Risk Analysis of a Hot Hong Kong Stock

Jiujuwang (01927.HK) is a candy and chocolate manufacturing company based in Jinjiang, Fujian, belonging to the consumer defensive sector, and was listed in 2021 [1]. On December 11, 2025, the stock made it to the Hong Kong Stock Surge List on the East Money App due to short-term price increases and technical breakthroughs [2].

1. Price and Technical Performance
   :
   • Significant recent price momentum: Up 3.937% in the past 3 days, up 7.317% in the past5 days, up4.762% in the past10 days [4].
   • Technical pattern: A “range breakout” pattern appeared, indicating the stock price broke through the top of the震荡 range [4].
   • Price trend: From November 26 to December9, the stock price rose from HK$0.12 to HK$0.15 in a volatile manner, closing at HK$0.146 on December11 [3][4].

2. Trading Volume Analysis
   :
   • Volatile trading volume: On December8, the volume reached 730,000 shares (recent high), but the stock price fell slightly by3.45% that day; on December9, the volume was285,000 shares, slightly lower than the 3-month average of293,800 shares; on December11, the volume was only115,000 shares, with a 5-day average of139,000 shares, showing low trading activity [3][4].

3. Market and Fundamental Background
   :
   • Market sentiment: The rise is mainly driven by retail investor attention, with no clear institutional buying detected [3].
   • Fundamentals: The company reported its first loss since listing in2024; net profit in H12025 dropped 47.8% year-on-year to 4.081 million yuan; current EPS is -HK$0.01, PE ratio is -14.60 [1][3][4].

1. Price-Fundamental Divergence
   : Short-term technicals show an upward trend, but the company’s earnings continue to deteriorate, and fundamentals cannot support long-term growth [1][3][4].
2. Liquidity Risk Amplifies Volatility
   : Average daily trading volume of less than300,000 shares means small-scale transactions can trigger large price fluctuations, increasing investment uncertainty [3][4].
3. Obvious Speculative Trend Characteristics
   : The rise lacks clear performance improvement or external positive catalysts, relying mainly on short-term momentum and retail speculation, so the sustainability of the trend is questionable [3].

• Main Risks
  :
  • Fundamental risk: Earnings decline and continuous losses [1][3][4].
  • Liquidity risk: Low volume leads to price vulnerability to manipulation [3][4].
  • Speculative risk: Lack of catalyst support, the trend may reverse quickly [3].
  • Valuation risk: Negative PE ratio lacks mature valuation logic [3].

• Potential Opportunities
  :
  • Short-term momentum trading opportunity: Technical breakout provides a short-term trading signal, but risk control is strictly required [4].

As a hot Hong Kong stock, Jiujuwang (01927.HK) has strong short-term price performance and technical breakthroughs, but the driving force behind the rise is mainly retail speculation. The company has weak fundamentals, continuous earnings decline, and insufficient liquidity amplifies price volatility risks. Investors should fully recognize the speculative characteristics of this stock and carefully evaluate investment risks and returns.