Popular Analysis of Melco Resorts & Entertainment Holdings (00571.HK) on Hong Kong Stock Market Surge List

Melco Resorts & Entertainment Holdings (00571.HK) is a company engaged in entertainment businesses including film, television, music and concerts [3][4]. On December 18, 2025, the stock made it to the “Surge List” of the Hong Kong stock market on the East Money App, indicating a significant short-term gain [2]. However, as of now, no direct price data for the stock’s gain on that day has been found, and the company has not released any recent sudden announcements or major events [2][3].

In October 2025, the company issued a profit warning announcement, expecting the annual loss for the period ending July 31, 2025 to decrease by no less than 95% year-on-year. The main reasons include reversal of impairment provisions for right-of-use assets/property, plant and equipment, reduced depreciation and improved earnings from rent relief [5]. However, this announcement was made more than two months before the current hype, so it is not a direct catalyst.

According to public data from Yahoo Finance, the company’s current price is approximately HK$0.044 (not real-time data for the hype day), with a market capitalization of about HK$77.259 million [3]. The 52-week range is HK$0.038-HK$0.078, and the day’s trading volume of 76,000 shares was far lower than the average trading volume of 826,131 shares [3].

1. Lack of Information Transparency
   : The company has limited public information, lacks recent operational updates and market coverage, making it difficult for investors to assess its actual value. This may provide room for short-term speculative hype [2].
2. Prominent Liquidity Risk
   : The company’s average trading volume is low. If the short-term gain is accompanied by an abnormal increase in trading volume, there may be speculative risks of “pumping and dumping” [3].
3. Fundamentals Still Need Improvement
   : Although the 2025 fiscal year loss narrowed significantly, the company is still in a loss state and has no clear expectation of turning profitable [5].

1. Information Transparency Risk: Insufficient public information from the company makes it difficult for investors to judge its actual value [2].
2. Liquidity Risk: Low average trading volume leads to greater trading difficulty and higher risk of price manipulation [3].
3. Fundamental Risk: The company is still in a loss state with an unclear profit outlook [5].
4. Valuation Risk: No effective analyst coverage or target price, so valuation lacks reference basis [3].

1. Entertainment Industry Recovery Expectation: If the industry as a whole recovers, the company’s business may benefit.
2. Short-term Speculative Opportunity: The stock price is within the 52-week range; if there is capital promotion, short-term fluctuations may occur.

Melco Resorts & Entertainment Holdings (00571.HK) became a popular stock due to appearing on the Hong Kong Stock Market Surge List on the East Money App, but the specific reason for the gain remains unclear. The company belongs to the entertainment industry; its 2025 fiscal year loss narrowed significantly but is still in a loss state. Investors need to pay attention to risks such as low information transparency and insufficient liquidity, and make decisions cautiously.