Reasons and Analysis for Weizhi Holdings (01305.HK) Becoming a Hot Stock in Hong Kong

Weizhi Holdings (01305.HK) became a hot stock in Hong Kong on December 11, 2025, mainly due to the following factors. First, the company’s core business performed strongly: its LED backlight business grew by 22.6% in the first half of 2025, accounting for 15% of the global automotive LED backlight market share [0]. Second, the company’s valuation is extremely undervalued: as of December 1, 2025, its market capitalization was approximately 145 million Hong Kong dollars, only one-third of its 2024 cash reserves (527 million Hong Kong dollars), with a price-to-book ratio as low as 0.147 [0]. In addition, CICC’s investment intention of 3-5 billion yuan has also brought positive expectations for its stock price [0]. The extraordinary general meeting held at 11:00 (UTC+8) on December 11 may have provided updates related to this investment or other important matters, which could be the direct诱因 for it becoming a hot stock in the afternoon of that day [0].

The case of Weizhi Holdings reflects the market’s attention to undervalued quality assets. Although the company’s core business has grown strongly and its cash flow is sufficient, there is a serious mismatch between its market capitalization and intrinsic value, with a price-to-book ratio of only 0.147, far below the industry average [0]. CICC’s investment intention indicates professional institutions’ recognition of its value, and the holding of the extraordinary general meeting may become a trigger for the revaluation of its stock price. This event also highlights the possibility that “value depressions” in the Hong Kong stock market are discovered and trigger short-term fluctuations.

: The extremely undervalued state of Weizhi Holdings provides investors with potential value investment opportunities. The stable growth of its core business and the adequacy of cash reserves provide support for its long-term development [0]. If CICC’s investment intention is realized, it will further enhance the company’s capital strength and market confidence [0].

: Although the current stock price performance is strong, due to the lack of complete latest price data and specific results of the extraordinary general meeting, the risk of short-term volatility still exists [0]. In addition, the LED industry is highly competitive, and there is uncertainty about whether the company can maintain its market share and growth rate [0].

Weizhi Holdings (01305.HK) became a hot stock in Hong Kong due to core business growth, extremely undervalued valuation, CICC’s investment intention, and the holding of the extraordinary general meeting. The company’s LED backlight business grew by 22.6% in the first half of 2025, with a price-to-book ratio of 0.147 and a market capitalization of only one-third of its cash reserves. Investors should pay attention to the specific results of the extraordinary general meeting and subsequent investment progress, while noting the risk of short-term volatility.