DAJIN

Dajin Heavy Industry plunged over 17% to close at HK$31.2, hitting a record low since listing, driven by panic selling after yesterday's sharp drop and continued profit-taking. The morning session opened at HK$34.52, briefly spiked to HK$36.64, but then kept sliding, reaching an intraday low of HK$31.34 in the afternoon session, near the 52-week low of HK$31.3. The stock has fallen 53.4% from its 52-week high of HK$66.95, with YTD loss exceeding 53%. Despite strong Q1 2026 results—revenue up 77% YoY to HK$2.16B, net profit surging 99.22% YoY to HK$493M, and net profit margin improving to 22.79%—the robust fundamentals failed to stem the selloff. Citi had initiated with a buy rating, but the stock continues to break below key moving averages (MA20: HK$53.14, MA60: HK$56.41) by over 40%, indicating extreme short-term weakness.

Dajin Heavy Industry opened sharply lower and continued to weaken in the morning session, closing down 5.19% at HK$39.82, a record low. Intraday, it touched a low of HK$39.82 and a high of HK$43.06, with a range of 7.71%. The decline was driven by lingering overhang concerns: the greenshoe option expired and was partially exercised, following a prior 5% drop on news of joint sponsor exercise. Despite recent orders for two bulk carriers (~USD300 million) and inclusion in the Stock Connect, the stock has plunged 40.03% YTD, is 40.52% below its 52-week high of HK$66.95, and has broken below both the MA20 (HK$57.43) and MA60 (HK$58.76). However, the company's core business in offshore wind and marine engineering remains intact, with 2,303 employees and a solid order book.

Dajin Heavy Industry closed at HK$41.7, down 8.15% in a single-day decline, primarily due to the joint sponsor exercising the over-allotment option and the end of the greenshoe stabilization period, which triggered selling pressure. The stock briefly touched an intraday high of HK$45.26 in early morning trading before falling sharply, hitting a 52-week low of HK$40.58 near the morning session's close, and then oscillated in a low range between HK$40.74 and HK$42.96 in the afternoon. Despite strong fundamentals – Q1 2026 revenue surged 76.97% YoY to HK$2.16 billion, net profit jumped 99.22% YoY to HK$493 million, and net profit margin improved to 22.79% from 13.69% in Q4 2025 – the stock remains well below its 60-day moving average of HK$58.634, with a year-to-date decline of 36.75% and 37.27% below its 52-week high of HK$66.95. However, inclusion in the Southbound Stock Connect eligible securities list could bring incremental capital from mainland investors.

Dajin Heavy Industry experienced a sustained single-day decline in Hong Kong stock trading, closing at HK$44.62, down 4.90%, primarily driven by overbought correction and profit-taking after a recent rally, alongside the partial exercise of the over-allotment option and the end of the stabilization period, which added near-term selling pressure. In the morning session, the stock oscillated from HK$46.92 to a high of HK$47.46 before falling sharply, and continued to dip in the afternoon to a session low of HK$45.04. Despite strong Q1 2026 earnings—net profit up 99.22% YoY to HK$493 million and revenue up 76.97% YoY to HK$2.16 billion—the stock has retreated 33.35% from its 52-week high of HK$66.95, and trades below its 20-day MA (HK$59.49) and 60-day MA (HK$60.22), indicating technical weakness. YTD, the stock is down 32.8%, with only a 3.77% buffer above its 52-week low of HK$43.00. However, its inclusion in the Southbound Stock Connect list may provide medium-term support.

Dajin Heavy Industry experienced a dramatic intraday reversal today, plunging to a new 52-week low of HK$43.34 during the morning session before staging a sharp recovery in the afternoon to close at HK$46.34, up 5.2% from the opening of HK$44.06, with an intraday range of 10.8%. The V-shaped rebound was primarily driven by stellar earnings: Q1 2026 net profit surged 99.22% YoY to HK$493 million, operating revenue jumped 76.97% YoY, and net profit margin expanded to 22.79% from 13.69% in Q4 2025, while EPS nearly doubled to HK$0.7709. Despite the strong fundamentals, the stock remains under pressure with a year-to-date decline of 30.42%, and the current price of HK$46.2 trades well below the 20-day MA of HK$60.368 and 60-day MA of HK$60.876, reflecting lingering concerns over elevated valuation (PE 23.1x) and a 31% drop from the 52-week high of HK$66.95, though increased afternoon volume of 498,800 shares suggests some bargain hunting on the earnings catalyst.