3 stocks after splitting enter the overlooked market, CIDI and ZHIDA TECH surged one after another, Nobby Kan may replicate the trend of Northbound capital speculation | Star Market Strategy

In the last round of the Hang Seng Index quarterly review, CIDI (3881), ZHIDA TECH (2650), and NobiKan (2635) were all included in the Hang Seng Composite Index, but they were not included in the Hong Kong Stock Connect in March due to a "stock split." With CIDI and ZHIDA TECH officially entering the Connect on the 9th and 10th of this month, respectively, they have seen cumulative increases of 35% and 19% as of last Friday. The market anticipates that NobiKan, which will officially enter the Connect on Monday (20th), is also expected to replicate this strong performance. Wu Li-xian, a securities strategist at Everbright Securities International, stated in an interview with Sing Tao Daily that although the stock price has been "rising wave after wave" since its listing, the upper resistance area is not obvious. However, he urged investors to remain cautious and be wary of the risks associated with the expiration of the lock-up period in June this year. Previously Split and Not Included in March CIDI, ZHIDA TECH, and NobiKan are all newly listed stocks that have been on the market for less than a year, having been listed in December, October, and December of last year, respectively. They were previously not included in the Hong Kong Stock Connect in March due to stock splits. With the split process now completed, and following the impressive performances of CIDI and ZHIDA TECH after their respective entries into the Connect, the market is closely watching NobiKan's performance after its entry on Monday. NobiKan primarily develops and sells monitoring and testing products and solutions for railway operations and power grid companies in China, as well as other urban governance solutions. It mainly provides integrated hardware and software solutions based on comprehensive AI industry models for monitoring, testing, and operation and maintenance purposes. In February of this year, the company proposed to split each share into 10 shares and changed the trading unit from 50 shares to 100 shares. The official split took place on March 11, and last Friday (17th), the trading of H shares (in both new and existing stock forms) resumed. Wu Li-xian: Not Recommended to Chase High on Entry Day The Shanghai Stock Exchange also announced last Friday that NobiKan would officially be added to the Hong Kong Stock Connect list, effective from the next trading day of the Connect, which is Monday (20th). Regarding the market's anticipation of a surge in its stock price, Wu Li-xian pointed out that while NobiKan's performance in 2025 is expected to grow, the extent is not significant, and it is unlikely to see a strong surge like CIDI and ZHIDA TECH after entering the Connect. In terms of investment strategy, Wu Li-xian advised against investors chasing high on the entry day for short-term trading. Instead, he suggested positioning before the official inclusion, and if there is a sharp rise in stock price just before the entry, investors could take profits early. He continued to state that the stock price has been "rising wave after wave" since its listing, with the upper resistance area not being obvious, indicating relatively low resistance. However, he recommended that investors wait for the stock price to fall to around HKD 55.45 at the 20-day moving average and between HKD 58 at the 10-day moving average to accumulate in batches. Pay Attention to the Lock-up Period Expiration in June As for profit targets, he suggested referring to the short-term RSI indicator, and if it rises to an overbought level of 70 to 80, it could serve as a reference point for taking profits. In the long term, he further urged investors to be cautious, as the stock was listed in December last year and will soon face the expiration of the lock-up period in June this year, emphasizing that there is no rush to buy for "long holding" at this stage and that it is advisable to wait until after the lock-up period expires for long-term positioning Related articles: Don't forget Hong Kong Broadband when searching for treasure in the stock market after China Mobile takes over; the first earnings report features a 4-cent dividend, experts warn of "large stock price fluctuations"｜Star Market Strategy Related articles: Star new stocks clash in a brutal three-way choice; the first "Hangzhou Six Little Dragons" is expected to soar, is entering just a second choice? Related articles: Global storage stocks face huge price shocks in March; major firms say the market misreads Google's algorithm, two stocks are top picks for bottom fishing Further reading: Star golden semi-new stocks welcome the unlocking of 170 million shares; a drop of over 30% from high levels may not be enough to balance, experts advise on gold price bottom fishing strategies