Melco Holdings (00571.HK) Hot Stock Analysis Report

Melco Holdings (00571.HK) is a film and television entertainment company listed on the Hong Kong Stock Exchange, mainly engaged in film and television investment and production, music publishing, concert production, artist management, and cinema operation [0]. On December 30, 2025, the company’s stock price closed at HK$0.039, a 52-week low, with a 7.14% drop that day; the trading volume was only 12,000 shares, far lower than the average volume of 896,612 shares [0]. Despite the recent weak performance, the company’s stock price still recorded a cumulative return of 93.04% over the past 5 years [0].

From a fundamental perspective, the company’s 2025 revenue was HK$780 million, a year-on-year decline of 33.2%; net loss was HK$12.8 million, a year-on-year narrowing of 97.49%; gross profit margin was 48.29% (at a good level in the industry), but the asset-liability ratio was as high as 97.85% [0]. There is no clear major breaking news on why the company has become a hot stock; it may be related to the Hong Kong stock market recording its best annual performance since 2017 in 2025 [1] and low-priced stocks being easily noticed by short-term speculative funds.

1. Stock Price Contrast
   : Despite a high cumulative return over the past 5 years, the company’s recent stock price hit a 52-week low, and the trading volume on that day was extremely low, indicating insufficient investor participation.
2. Fundamental Contradiction
   : The coexistence of high gross profit margin and continuous losses reflects that the company may face high operating costs or financial leverage pressure.
3. Speculative Characteristics
   : The company is a low-priced stock, easily driven by short-term funds rather than significant business improvement.

• High leverage risk: Asset-liability ratio of 97.85% leads to weak financial stability [0].
• Profitability challenge: Continuous losses for many years; although the loss has narrowed, it still has not achieved profitability [0].
• Low liquidity risk: Only 12,000 shares traded that day, with inactive transactions [0].
• Industry competition: The film and television entertainment industry is highly competitive, and content quality directly affects performance [0].

• Recovery of Hong Kong stock market: The strong performance of Hong Kong stocks in 2025 may provide support for the company’s stock price [1].
• Narrowing loss: If the company continues to control costs, it is expected to gradually achieve profitability.

As a hot Hong Kong stock, Melco Holdings (00571.HK) currently has its stock price at a 52-week low with extremely low trading volume and high financial leverage. The company mainly engages in film and television entertainment business; in 2025, its revenue declined, losses narrowed but still unprofitable. Its attention may be related to the overall strength of Hong Kong stocks and the speculation of low-priced stocks. Investors need to pay attention to risks such as high leverage and low liquidity.