SENIOR MATERIAL

Star Power Material opened lower and slid further during the morning session, hitting an intraday low of HK$7.40 before closing at HK$7.46, down approximately 6.8% and marking a new record low. The company's Q1 net profit fell 33.65% YoY to about HK$33.2 million, with EPS down 29.43% to HK$0.0227, reflecting persistent profitability pressure despite a 28.65% revenue increase to HK$1.225 billion. The stock now trades 44.37% below its 52-week high of HK$13.41 and far below the 20-day moving average of HK$9.36, with YTD decline standing at 32.18%. A series of negative headlines, including a prior session's 16% plunge, weighed on sentiment, though the company has proposed governance amendments including a nomination committee.

SENIOR MATERIAL staged a sharp afternoon rebound, closing up 5.24% at HK$8.240, reversing from an early swoon that touched an intraday low of HK$7.640 (just HK$0.01 above the 52-week low). The stock surged to a session high of HK$8.230 in the afternoon session, driven by short-covering after a persistent sell-off, amid lingering positive sentiment around the recently announced energy storage fund partnership with Farasis. Despite Q1 2026 revenue climbing 28.65% YoY to HK$1.225 billion, net profit slumped 33.65% YoY to HK$33.19 million, with a net margin of only 2.71%, underscoring profitability headwinds. The stock trades at a lofty PE of 155.54x but a low PB of 1.11x, suggesting deep value discount. At current price, it remains 38.55% below the 52-week high of HK$13.41 and significantly under its 20-day MA of HK$9.664, highlighting a steep technical gap. However, turnover reached HK$196 million with a 3.04% churn rate, indicating heavy intraday volatility and unresolved selling pressure.

Star Power Material opened sharply lower in the morning session, briefly touched HK$9.320 before plunging to close at HK$8.330, down approximately 10.4%, near its 52-week low of HK$8.290. The sell-off was driven by persistent headwinds in the lithium battery sector and market concerns over the company's capital allocation following the recent energy storage fund setup. Despite a 28.65% YoY rise in Q1 2026 revenue to HK$1.225 billion, net profit slumped 33.65% YoY to just HK$33.19 million, with a net margin below 3%. The stock trades well below its 20- and 60-day moving averages of HK$9.801, down 24.18% year-to-date and nearly 38% from its 52-week high of HK$13.41. However, Q1 operating income grew 19.19% YoY, suggesting core business improvement, while the price-to-book ratio of 1.12x points to a relatively low valuation.

Sunway Material staged a rally-and-retreat session, surging to an intraday high of HK$10.07 in the morning before slumping to close at HK$9.30, down 2.4%, as ongoing lithium battery sector weakness and profit-taking after recent partnership news weighed. The stock hit a session low of HK$9.16, just 4.5% above its 52-week low of HK$8.90, while remaining 30.6% below the 52-week high of HK$13.41; it also closed below the 20-day moving average of HK$9.915, signaling technical weakness. Q1 2026 revenue rose 28.7% YoY to HK$1.23 billion, but net profit fell 33.7% to HK$33.2 million, with a net margin of only 2.7%, highlighting margin pressure. The recently announced energy storage fund partnership with Farasis, however, offers a medium-term anchor.

Star New Material experienced a single-day decline, closing at HK$9.62, a 28.5% drop from its 52-week high of HK$13.41 and below the 20-day moving average of HK$10.01. The stock briefly touched an intraday high of HK$10.57 in the morning session but weakened afterward, with losses accelerating in the afternoon to a low of HK$9.61, closing near the day's bottom. The selloff came amid a pressured lithium battery sector and profit-taking, following a recent rally driven by the company's announcement of a HK$5 billion energy storage fund partnership with Farasis Energy. Financially, Q1 revenue rose 28.7% YoY to HK$1.225 billion, but net profit fell 33.7% YoY to HK$33.2 million, with a net margin of only 2.7%. The stock trades at a P/E of 180x and a P/B of 1.28x, with a year-to-date decline of 12.8%.