South China Financial (00619.HK) Hot Stock Analysis

South China Financial (00619.HK) is a comprehensive financial services company listed on the Hong Kong Stock Exchange. Founded in 1988 and listed in 1993, its main businesses include jewelry, media publishing, brokerage, margin financing, property investment, asset management, and other fields [2]. The main catalyst for its recent rise as a hot Hong Kong stock is its announcement on November 14, 2025, of plans to establish a joint venture with a third party to enter the AI drug R&D platform and related technical services, including developing an AI drug R&D platform, an AI drug efficacy prediction platform to serve global beauty customers, developing disease and aging pipelines, and developing anti-aging products for consumers [2][3]. This news comes amid an IPO and investment boom in Hong Kong’s AI industry; AI drug R&D companies like Insilico Medicine have listed in Hong Kong and achieved great success, driving market attention to AI-related concept stocks.

Recently, South China Financial’s stock price rose 6.76% from HK$0.375 to HK$0.40 [1][4], but the transaction amount was only HK$7,840, with a turnover rate of 0.007%, far below the average level, indicating extremely low liquidity [1]. In terms of valuation, the price-to-earnings ratio is negative, and the price-to-book ratio is 3.56, much higher than the industry average of 0.87, making the valuation relatively high [1]. Regarding market sentiment, the stock has attracted the attention of retail investors, with 1,269 followers on Xueqiu, a Hong Kong stock discussion platform [4], but there are currently no institutional ratings and the institutional shareholding ratio is low [2].

: The company’s financial condition is poor, with a return on equity of -286.10% and an asset-liability ratio of 96.73%, and it is in a loss-making state [2]; extremely low trading volume leads to high liquidity risk [1]; AI drug R&D is a new business area, currently only at the memorandum of understanding stage, with significant uncertainty; high valuation, as the price-to-book ratio is much higher than the industry average [1].

: Leveraging the IPO and investment boom in Hong Kong’s AI industry, the AI concept may bring short-term market attention to the company; if the AI drug R&D business progresses smoothly, it is expected to provide a new revenue growth point for the company.

South China Financial (00619.HK) has become a hot Hong Kong stock due to its plan to enter the AI drug R&D field. Its stock price has risen recently, but trading volume is extremely low, leading to high liquidity risk. The company’s financial condition is poor, and the AI business is only at the memorandum of understanding stage, with significant uncertainty. Investors should pay attention to financial risks, liquidity risks, conceptual risks, and the subsequent progress of the AI business.