C-LINK SQ (01463.HK) Hot Stock Analysis: Earnings Improvement and Long-Term Risks Coexist

C-Link Squared Limited (Stock Code: 01463.HK) is a software services enterprise listed on the Main Board of the Hong Kong Stock Exchange, with a current share price of approximately HK$0.255 and a market capitalization of around HK$168 million [1]. The company is included in the hot sector of etnet Software Services Stocks, and has gained certain market attention against the backdrop of capital inflows into the Hong Kong stock software services sector in early 2026 [3].

From a business perspective, the company focuses on software-related services and is a small and medium-sized enterprise in the Hong Kong stock software services sector. Despite its low absolute share price (falling into the penny stock category), which carries certain speculative appeal, its fundamentals still need continuous improvement to support valuations.

According to the financial data announced as of December 30, 2025 [2], the company’s annual revenue reached HK$80.906 million, representing a 25.64% year-on-year increase, a growth rate that stands out in the software services sector. Meanwhile, losses narrowed by 35.82% compared to the previous year, indicating that the management has achieved certain results in cost control and operational efficiency improvement.

However, investors need to note the following points: First, despite the narrowed losses, the company has not yet turned profitable, and the sustainability of its fundamental improvement remains to be verified; Second, the company issued a profit warning on August 21, 2025 [5], indicating that the management holds a cautious attitude towards the performance outlook; Third, the company changed its auditor in November 2023 [6], a change that deserves investors’ attention.

From a long-term trend perspective, C-LINK SQ has shown weak performance [0]. The stock only recorded a mild increase of approximately 2% over the 1-month, 3-month, and 6-month periods, but fell 8.93% in a year, plummeted 81.96% in three years, and also dropped 53.06% in five years. Its annual decline in 2024 reached as high as 68.50%, reflecting market concerns about the continuous deterioration of the company’s fundamentals.

Looking at its annual performance in recent years, 2021 was the company’s highlight year (with a 137.04% increase), but it has seen sharp declines for three consecutive years since then, falling 68.50% and 29.25% in 2024 and 2023 respectively. The current share price is in the historical low range, with initial technical support around HK$0.25, but there is obvious resistance in the HK$0.28-HK$0.30 range.

: The Securities and Futures Commission (SFC) issued an announcement on October 27, 2020 [4], pointing out that C-Link Squared Limited has a highly concentrated shareholding structure. This means the company’s shares may be easily manipulated by a small number of shareholders, and share price fluctuations may deviate from fundamentals. Investors need to be alert to the potential risk of price manipulation.

: As a small-cap penny stock, C-LINK SQ has relatively light trading volume, and large transactions may have a significant impact on its price. In addition, penny stocks usually have high volatility, leading to high intraday price risks.

: Although revenue growth and narrowed losses are positive signals, the company is still in a loss-making state, and the sustainability of its business model remains to be verified.

: The company changed its auditor in 2023 [6], a change that may reflect certain concerns during the audit process. Investors should remain vigilant.

In the short term, the stock has received certain technical buying support driven by the popularity of the software services sector [3] combined with signals of performance improvement. However, the overall market sentiment is cautious, with investors focusing more on whether the company can continuously improve its performance and achieve profitability.

Positive factors include revenue growth momentum, sector popularity, and the low absolute share price attracting speculative capital; concerns focus on weak long-term trends, historical compliance records, and continuous losses, among others.

The investment value of C-LINK SQ depends on whether the performance improvement trend can be sustained. The current share price has fallen to the historical low range, which may be somewhat attractive to short-term traders with higher risk appetite, but long-term investors should maintain a cautious attitude. The case of this stock also reflects the common challenges faced by small and medium-sized software services enterprises in the Hong Kong stock market: how to achieve sustainable growth in a highly competitive market while establishing a robust governance structure.

From a sector perspective, software services stocks are a high-volatility sector in the Hong Kong stock market, with rapid capital rotation. Investors need to closely monitor the overall capital flow of the sector and the company’s subsequent announcements.

• Highly Concentrated Shareholding Risk
  : May increase the possibility of share price manipulation and abnormal fluctuations
• Continuous Loss Risk
  : The company has not yet achieved profitability, and the sustainability of its operations is in doubt
• High Volatility Risk
  : The characteristics of penny stocks lead to large intraday price fluctuations
• Liquidity Risk
  : Light trading volume may affect exit efficiency

• Performance Improvement Trend
  : If revenue growth and loss narrowing can be sustained, it may support valuation recovery
• Sector Popularity
  : The software services sector as a whole has attracted capital attention, which may drive the share price upward
• Low Absolute Share Price
  : The low-price characteristic may attract the attention of short-term speculative capital

C-LINK SQ (01463.HK), as a hot stock in the Hong Kong stock software services sector, currently features coexisting performance improvement and long-term risks. The recent 25.64% year-on-year revenue increase and 35.82% narrowing of losses are positive signals, but the cumulative decline of over 81% in three years, records of highly concentrated shareholding, and continuous loss status constitute major risks. This stock is suitable for short-term traders with higher risk appetite to follow, but strict stop-loss levels (HK$0.24 is recommended) should be set, and subsequent financial reports and announcements should be closely monitored. For long-term holders seeking stable investments, it is not recommended to include this stock in core holdings at the current stage.