Market Performance and Outlook Analysis of Melco International Development Limited (00571.HK)

Melco International Development Limited (00571.HK) is a Hong Kong-listed company engaged in media and entertainment businesses with a market capitalization of approximately HK$684.8 million [0]. As of December 30, 2025, the company’s share price was HK$0.039, down 7.143% on the day [1][2]. Its main businesses include film production and distribution, cinema operation (MCL Cinemas), music production and publishing, and artist management [3].

The main factors that have recently made Melco International Development Limited a hot stock in Hong Kong stocks are threefold:
(1) The technical chart shows a “Golden Cross” signal—short-term moving average crosses above long-term moving average, usually seen as a bullish signal, attracting the attention of technical traders [1];
(2) FY2025 net loss narrowed to HK$12.8 million, improving by 97.495% year-on-year, indicating a gradual improvement in financial conditions [4];
(3) Benefiting from the expected recovery of the entertainment industry in Hong Kong and mainland China, investors have high expectations for the company’s future performance [3].

• Price Performance
  : The 52-week price range is HK$0.039-HK$0.078, and the closing price on December 30, 2025, was the 52-week low [1];
• Trading Volume and Turnover Rate
  : The daily trading volume was only 12,000 shares with a turnover rate of 0.00%, indicating extremely poor stock liquidity [0].

1. Contradiction Between Technical Signals and Liquidity
   : Although a bullish “Golden Cross” signal appeared, extremely low liquidity limits the signal’s reliability—short-term traders need to be cautious;
2. Sustainability of Financial Improvement
   : Although the company has achieved a significant narrowing of losses, it is still in a loss-making state—attention needs to be paid to the sustainability of subsequent profit improvement;
3. Dual Impact of Industry Recovery
   : While the recovery of the entertainment industry brings opportunities to the company, the cinema business still faces competitive pressure from streaming services [3].

• The recovery of the entertainment industry brings business growth potential;
• Sustained improvement in financial conditions may attract value investors;
• Technical chart signals may bring short-term trading opportunities.

• Liquidity Risk
  : Extremely low trading volume and turnover rate may make it difficult for investors to buy or sell stocks at the desired price [0];
• Profitability Risk
  : The company has not yet achieved profitability, and there is uncertainty about future profit prospects;
• Industry Competition Risk
  : The media and entertainment industry is highly competitive, and the cinema business is greatly impacted by streaming media [3];
• Technical Signal Risk
  : The reliability of technical signals for low-liquidity stocks is low.

Melco International Development Limited has recently become a market focus due to the “Golden Cross” technical signal and improved financial conditions, but extremely low liquidity and the current loss-making status constitute important risks. Investors should comprehensively consider the industry recovery trend, the sustainability of the company’s financial improvement, and liquidity risks to make rational investment decisions.

Support Level: HK$0.039 (52-week low)
Resistance Level: HK$0.078 (52-week high)