Can-Hong Education (01935.HK) Hot Stock Analysis: Opportunities and Risks Under Low Valuation

1. Stock Overview
   : Can-Hong Education (01935.HK) is a stock in the Hong Kong education services sector, closing at HK$0.88 on December 29, 2025 [1].
2. Popularity Drivers
   : Core lies in significantly low valuation—TTM P/E ratio of 4.61x, PB ratio of 0.40x, far below the industry average of 11.19x PE and 0.96x PB [2]. Additionally, the event occurred on January 1, 2026 (the first day of the New Year), so this stock may be regarded by the market as a potential target for value investment strategies in the new year [0].
3. Price and Volume Performance
   : From December 29 to 30, 2025, the stock price fell slightly, closing at HK$0.88 (down 1.12%) and HK$0.87 (down 1.14%) respectively [3][4]; trading volume remained low, with 18,000 lots and 7,227 lots on the two days, both below the market average [3][4]. Historical prices show a 52-week high of HK$1.29 and low of HK$0.69; the current price is close to the low range, with expectations of a technical rebound [3].

1. Low Valuation and Sentiment Misalignment
   : Although the valuation is highly attractive, market sentiment is limited (only 603 followers on the Snowball platform, with low discussion volume [4]), indicating that investors still have concerns about its performance (announced a 19.4% drop in full-year net profit 8 months ago and no dividend distribution [5]) and industry policy risks.
2. Short-term Nature of New Year Theme
   : As a hot stock on the first day of the New Year, its popularity may be short-term thematic; attention should be paid to whether there is substantial performance improvement or industry positive support in the follow-up [0].
3. Superimposed Liquidity Risk
   : The combination of low trading volume and low stock price may amplify price fluctuations; investors need to be alert to the trading difficulties caused by insufficient liquidity [3][4].

• Low valuation provides an entry window for value investment; if performance reverses or industry policies ease, there may be room for stock price recovery [0].

• Performance Pressure
  : Past performance decline and no dividend distribution affect investor confidence [5].
• Liquidity Risk
  : Low trading volume exacerbates stock price volatility [3][4].
• Policy Risk
  : The education industry is greatly affected by regulatory policies; changes in China’s education policies may directly impact operations [2].

This analysis integrates Can-Hong Education’s (01935.HK) valuation, price trend, market sentiment, and risk factors. The stock became popular due to low valuation and the New Year investment theme, but faces multiple challenges in performance, liquidity, and policy. Investors should combine their own risk preferences and investment horizons to make decisions based on objective data and market background.