Movement Alert|Nobikan Falls 5.07% in Regular Trading, Post-Stock Connect Selling Pressure Persists Amid Earnings Quality Concerns

Market Focus
May 26

On May 26, Nobikan (02635.HK) fell 5.07% in regular trading, trading at HKD 14.66 per share, with trading volume of approximately HKD 33.97 million.

On the news front, the stock has been under sustained selling pressure since its inclusion in the Stock Connect program on April 20, retreating from a high of HKD 83.2 with cumulative decline exceeding 80%. Profit-taking by early investors has shown no signs of abating. Additionally, despite the company previously issuing a clarification statement regarding supplier Hengxin Dongfang's revenue inflation incident — emphasizing only routine business dealings and no knowledge of the matter — market skepticism over earnings quality persists. Revenue grew 23.7% year-over-year while net profit attributable to shareholders increased only 2.1%, a severe mismatch that continues to suppress valuation recovery prospects.

Furthermore, the stock's actual free float is limited to approximately 30 million shares, resulting in extremely high daily turnover rates. This low-float structure amplifies price volatility in both directions under prevailing sentiment pressure.

(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.)

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