Hong Kong Stock Market News | HORIZON CD Soars Over 15%: Institutions Believe Recent Sell-off is Unjustified, Recommends Buying at Current Low Levels

HORIZON CD surged more than 15%, reaching a 15.19% increase at HKD 2.73, with a trading volume of HKD 5.45 million as of the time of writing. It is worth noting that the company's stock price had dropped nearly 50% on January 17th and 18th. CMB International recently maintained a "buy" rating for HORIZON CD, stating that the recent sell-off was not justified. They expect the selling pressure to end within 2-3 days and recommend buying at the current low level with a target price of HKD 5.2. The bank believes that the stock price decline was caused by some shareholders of FE HORIZON selling their HORIZON CD shares after receiving them, possibly to achieve their own financial goals. Although the bank is surprised by the lack of market support, analysis shows that the selling pressure will likely only last for an additional 2-3 days. The bank sees the current significant pullback as a buying opportunity, as the sell-off is not driven by fundamentals. HORIZON CD is currently trading at a P/E ratio of 5 times the 2024 earnings, which the bank finds attractive. They also continue to have a positive outlook on the company's transition to a light-asset model, which will improve its balance sheet and profitability. Additionally, overseas expansion will become a new growth driver in the coming years.