SHANDONG MOLONG

Shandong Molong opened flat in the morning session and consolidated narrowly at HKD 5.095, closing at that price, up 5.05% from the previous close of HKD 4.85, with a volume of about 3.127 million shares and turnover of approximately HKD 16.01 million. The stock had recently experienced significant volatility due to oil price fluctuations and a share placement, with the price pulling back from highs in May. Today's modest rebound may be supported by improved liquidity after the completion of the placement. The company's Q1 2026 revenue surged 141.92% YoY to about HKD 755 million, net profit turned positive to HKD 6.33 million, and net profit margin improved to 0.84%, though the full-year outlook remains challenged. The current price is still 68.8% below the 52-week high of HKD 16.33, yet it has gained 57.74% year-to-date, while trading below both the 20-day MA (HKD 5.335) and 60-day MA (HKD 5.331), indicating a weak price position.

Shandong Molong traded in a narrow range during the morning session, fluctuating between HKD 4.75 and 4.815, with the latest price at HKD 4.81, down approximately 4.6% from the previous close of HKD 5.04. The decline is primarily attributed to recent oil price weakness and lingering market sentiment after the company completed a discounted share placement. The company placed 25.68 million H-shares at HKD 4.07 per share (a 16.76% discount to the last closing price before the announcement), raising approximately HKD 115.7 million to repay debt. Q1 2026 results showed a 141.9% YoY surge in operating revenue to HKD 755 million, with net profit turning positive to HKD 6.33 million and operating income soaring 263.7% YoY. Despite the fundamental improvement, the stock remains 70.5% below its 52-week high of HKD 16.33 and trades below both the 20-day (HKD 5.4) and 60-day (HKD 5.56) moving averages, while YTD gains of 48.9% suggest profit-taking pressures.

Shandong Molong opened higher and rallied in the morning session, gaining 5.47% in Hong Kong morning trading, driven by the completion of its share placement—the company placed ~25.68 million H-shares at HK$4.84 each, netting approximately HK$115.7 million for debt reduction. Brent crude breaking above USD90/barrel further lifted sentiment for oilfield services stocks. Q1 2026 revenue surged 141.92% YoY to HK$754.97 million, while operating profit turned positive at HK$49.33 million, signaling a sharp operational turnaround. However, the current price of HK$4.82 remains 70.48% below the 52-week high of HK$16.33 and trails both MA20 (HK$5.358) and MA60 (HK$5.607), highlighting persistent technical weakness and the nearly 19% placement discount reflects near-term capital pressure.

Shandong Molong (568.HK) opened higher and retraced during the session, closing at HKD 5.14, up 2.6% from the previous close of HKD 5.01. The stock hit an intraday high of HKD 5.29 before easing to HKD 5.13 in the afternoon, with a range of about 3.5%. The move was driven by the completion of a discounted share placement of 25.68 million shares (approx. 19% discount) raising HKD 115.7 million for debt reduction, which pushed the stock up 5% in early trade. However, lingering oil price volatility and a prior sharp sell-off (down over 13% last week) capped gains. Q1 revenue surged 142% YoY to HKD 755 million, with net profit of HKD 6.33 million turning positive. Yet the stock remains 68.5% below its 52-week high of HKD 16.33, though up 59% YTD, and trades below both the 20-day (HKD 5.33) and 60-day (HKD 5.67) moving averages, while PB stands at a high 7.42x, indicating ongoing valuation pressure.

Shandong Molong opened lower and continued to decline in the morning session, closing at HKD 4.97, down 5.15% from the previous close of 5.24, with an intraday low of 4.97 and a high of only 5.08. The drop was mainly driven by falling international oil prices weighing on the oil services sector, and continued pressure from the company's recent placement of 25.68 million H-shares at a ~16.76% discount, raising net proceeds of over HKD 100 million for debt repayment. Q1 revenue surged 141.92% YoY to HKD 755 million, and operating profit turned positive to HKD 49.3 million, with a net margin of 0.84%. Yet the stock remains below its 20-day MA (5.231) and 60-day MA (5.778), although YTD gains stand at 53.87%, and it is 69.57% below the 52-week high of 16.33. However, the PB remains elevated at 6.95x, and sustainability of earnings improvement is yet to be seen.