On September 17th, Singularity Peak (01280.HK) continued to surge, with a one-day increase of up to 13.5%, reaching a high of 3.02 HKD.
By midday, the stock had risen by 8.27%, closing at 2.88 HKD.
Looking at the longer term, it's not hard to notice that Singularity Peak's stock price trend has been quite steep in the past two months.
Since the end of July this year, its cumulative increase has reached an astonishing 4.8 times, a growth trajectory that has attracted widespread attention in the market.
Delving into its historical K-line chart, Financial Times noticed that after a long period of silence and adjustment for more than half a year, Singularity Peak reached a turning point on July 29th, when the stock price suddenly soared by nearly 90%.
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Subsequently, the company's stock price has frequently staged "sharp rise" performances.
Especially since entering September, its upward momentum has become even more apparent.
Specifically, on the trading days of July 30th, August 27th, September 3rd, September 9th, September 10th, and September 13th, Singularity Peak's stock price achieved significant single-day gains, with increases of 17.02%, 21.43%, 25.85%, 18.58%, 28.57%, and 16.22% respectively.
Behind this series of dazzling data is the further expansion of Singularity Peak's business, which has made the market sentiment more optimistic and driven the stock price to rise.
Data shows that Singularity Peak is a company mainly engaged in retail business, including the retail and maintenance and installation services of home appliances, mobile phones, computers, imported and general merchandise; liquor business; and educational training services.
According to the revenue in the first half of this year, home appliance sales, as the core business of Singularity Peak, accounted for about 68.36% of the revenue; liquor sales accounted for 20.95%; and educational training services accounted for 10.69%.
On July 26th, Singularity Peak announced a major acquisition plan, intending to acquire all the equity of Shengshang Entrepreneurial Services Co., Ltd. for 340 million HKD.
It is reported that the target group is a training service provider for small and micro enterprises and individual industrial and commercial households in China, with its target customers being entrepreneurs and senior managers of small and micro enterprises and individual industrial and commercial households, as well as customers who intend to start a business.
Market analysis suggests that this acquisition is a key step in the diversification and strategic expansion of Singularity Peak's business, which not only enhances its competitiveness in the training service market for small and micro enterprises and individual industrial and commercial households, but also further enhances investors' confidence in the company's future development.
However, from a fundamental perspective, Singularity Peak's operating performance is not optimistic.
Although revenue has been growing steadily, the increase in costs during the expansion period has kept the company in a loss-making state.
In the first half of this year, Singularity Peak's revenue was about 173 million yuan, a year-on-year increase of 23.2%; it recorded a net loss attributable to the parent company of 32.58 million yuan, while the same period last year was profitable by 86.612 million yuan, turning from profit to loss year-on-year.
For the loss, Singularity Peak stated that it is mainly due to the liquor business and the provision of educational training services, both of which are currently in the initial stage of development, with a large proportion of expenses and high costs for developing related markets.
It can be seen that the strong stock price trend of Singularity Peak has obviously deviated from the fundamentals.
Its stock price has soared 4.8 times in just over a month and a half, which is more influenced by short-term market speculation sentiment.
In addition, the recent sharp fluctuations in Singularity Peak's stock price may also be closely related to factors such as micro-cap stocks.
Micro-cap stocks, due to their relatively small scale and low market liquidity, are often more easily driven by funds, showing higher price volatility.
As of the midday break on September 17th, Singularity Peak's total share capital was 956 million shares, with a total market value of only 2.752 billion HKD, a trading volume of only 398,000, a turnover of 11.583 million yuan, and a turnover rate of only 0.04%, less than 1%.
Therefore, investors need to keep a clear mind when facing companies like Singularity Peak, analyze the company's development potential and the rationality of the current valuation rationally, and be alert to the risk of stock price correction.
On September 16th, Singularity Peak's stock price suffered a "flash crash", falling by 22.67% that day, which may be due to some funds choosing to take profits.