On August 19, SENSETIME-W declined 3.07% in regular trading, trading at HKD 1.42/share, with turnover of HKD 167 million. The stock entered its second consecutive session of profit-taking following a nearly 9% surge on August 17 driven by the company's first-ever positive profit alert since listing.
On the news front, SENSETIME-W announced on August 16 that it expects to record net profit of RMB 500 million to 700 million for the first half of the year, compared with a loss of approximately RMB 1.49 billion in the same period last year, marking its first consolidated profit since its Hong Kong IPO. Goldman Sachs subsequently raised its target price from HKD 2.00 to HKD 2.05, citing better-than-expected earnings driven by cost management and operational efficiency improvements. However, the short-term rally has largely priced in the positive expectations. The broader Application Software sector is also under pressure, with WEIMOB INC down 8.98% and 51WORLD down 6.13%, amplifying the pullback momentum.
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