On June 24, Mobvista (01860.HK) fell 5.09% in regular trading, trading at HK$11.02/share, with turnover of HK$85.25 million. The stock has extended its correction following a classic buy-the-rumor-sell-the-news pattern after receiving its first institutional coverage.

On the news front, Huachuang Securities recently initiated coverage on Mobvista with a Strong Buy rating and a target price of HK$17.7, projecting revenue of US$2.7/3.7/4.6 billion and adjusted net profit of US$150/260/380 million for the period. The broker applied a 25x target PE, corresponding to a market capitalization of US$3.7 billion. Despite this bullish initiation and the company being re-selected to the Fortune Southeast Asia 500 list with improved ranking, the stock has slid from above HK$13 to current levels, reflecting sustained profit-taking pressure.

Fundamentally, Mobvista reported Q1 revenue of US$581 million, a 32.2% year-over-year increase, and previously secured a US$150 million strategic equity allocation from Temasek. However, short-term selling momentum has dominated despite supportive fundamentals.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)