Deling Holdings (01709.HK) Analysis of a Popular Hong Kong Stock

Deling Holdings (01709.HK) has recently become a hot spot in the Hong Kong stock market, with the core driving factor being the active expansion of its Bitcoin mining business. The company has deployed high-efficiency mining hardware in the US, Oman, and Paraguay [1], and acquired 4000 Antminer S21 XP Hyd Bitcoin mining machines (473 TH/s per unit) for approximately US$39.2 million [1][2]. Technical analysis shows that the stock has formed a ‘Golden Cross’ technical pattern [2], attracting the attention of technical traders. In terms of price and volume, the stock price rose 5.10% to HK$1.65 on December 21 with a turnover of HK$37.4776 million [1]; on December 24, it further rose 8.67% to HK$1.88 [1], with trading volume significantly higher than the average level, reflecting a substantial increase in market attention.

1. Thematic Investment Drive
   : Bitcoin mining business is a current hot theme in the market, and Deling Holdings’ business expansion just hits this theme, attracting concentrated attention from investors in related sectors.
2. Amplification of Technical Signals
   : The emergence of the ‘Golden Cross’ technical pattern provides a buy signal for technical analysts, further amplifying the upward momentum of the stock price.
3. Popularity Platform Effect
   : Making it to the Hong Kong Stock Popularity List on the East Money App indicates high attention from individual investors, forming a short-term market hot spot effect.

1. Doubts about Company Credibility
   : Some investors are concerned about the company’s credit and suspect it of being a ‘shell company’ [1], so potential corporate governance risks need to be alerted to.
2. Volatility in the Cryptocurrency Market
   : The revenue of Bitcoin mining business is directly affected by the price of Bitcoin, and the high volatility of the cryptocurrency market will bring great uncertainty.
3. Rationality of Valuation
   : The stock price has risen rapidly recently, so attention needs to be paid to whether the current valuation matches the company’s fundamentals and business prospects, and the risk of short-term over-hyping should be alerted to.

• If the Bitcoin mining business progresses smoothly and generates expected revenue, the company’s performance is expected to improve, and the stock price may receive fundamental support.
• As a hot theme target, it may still receive continuous attention from market funds in the short term.

Deling Holdings (01709.HK) has recently seen its stock price rise due to the expansion of Bitcoin mining business and technical signals, with market attention significantly increased. The company’s business expansion potential, technical signals, and related risk factors need to be comprehensively considered to objectively evaluate its investment value. Currently, attention should be paid to the price performance around the recent resistance level of HK$1.90 and support level of HK$1.70.