On June 16, Pateo Connect+ (02889.HK) declined 5.46% in regular trading, trading at HKD 210.8/share, with turnover of HKD 41.71 million. The stock continues to face selling pressure as profit-taking from the early-June rally intensifies amid lingering market skepticism over its strategic pivot.

On June 2, the company announced a proposed joint acquisition with Ping An Capital of a controlling stake in a high-performance optoelectronic chip design firm, which initially drove shares up over 12% on June 3. However, the stock has since entered a volatile downtrend. Despite supportive policy developments — including the MIIT's June 10 publication of guidelines explicitly prioritizing high-speed optoelectronic chips and CPO devices as national strategic priorities — and the company's announcement of a tripartite strategic cooperation with Xunce Technology and Saimu Technology on in-vehicle Token economy, market confidence has not been effectively restored in the near term.

Analysts note that while Pateo's acquisition timing aligns with policy direction, the stock's elevated valuation at 13.46x price-to-book amid ongoing net losses (EPS of -HKD 7.66) continues to fuel profit-taking from earlier gains.

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