Hot Stock Analysis: Jiujuwang (01927.HK) - High-Risk Warning for a Small-Cap Confectionery Stock

Jiujuwang Food International Co., Ltd. (01927.HK) was included in the list of Hong Kong Stock Exchange hot stocks on January 7, 2026. The company is a Chinese confectionery product manufacturer primarily engaged in the production and sale of gum-based candies, compressed candies, aerated candies, and hard candies, with brands including Kusha, Xiaoqingxin, Lalab, and Jiujuwang [1][2].

From a market data perspective, Jiujuwang’s current share price is HK$0.138, with a total market capitalization of only HK$109 million, making it a typical small-cap penny stock listed on the Hong Kong Stock Exchange. The company is currently in a loss-making position, with a price-to-earnings ratio of -13.80x. Trading volume is extremely low (only 60,000 shares), and the turnover rate is merely 0.01% [0]. The share price has fallen by over 83% from its historical high of HK$0.820, and the current price is close to its 52-week low of HK$0.100 [0].

Regarding the specific catalyst for it becoming a hot stock, no major announcements or breaking news have been found in public information. As a small-cap stock, its growing attention may be related to the following factors: the consumer defensive sector performed well overall (up 1.33% on the day) [0], with funds possibly rotating into oversold small-cap stocks to seek short-term opportunities; in addition, the company actively participated in multiple food industry exhibitions for brand promotion in 2025 [1], which may have led to expectations of potential business development.

: Jiujuwang’s trading volume is extremely low, with a single-day turnover of only HK$8,280, which means investors may face difficulties in entering or exiting the market quickly. The bid-ask spread may be wide, and slippage costs will be significant during market volatility. Investors accustomed to the high-liquidity markets of A-shares or US stocks need to be particularly alert to this liquidity risk.

: The company is currently in a loss-making position, with a negative price-to-earnings ratio. However, the food manufacturing industry often has certain defensive attributes during a consumer downturn, especially for enterprises with established brands. Having long been engaged in confectionery production, the company has accumulated certain channels and brand recognition, and there may be potential opportunities for mergers and acquisitions or business transformation amid industry consolidation.

: In the Hong Kong stock market, it is common for small-cap stocks to see increased trading volume due to capital inflows. Especially when the broader market is relatively stable, it is a common phenomenon for funds to flow into oversold small-cap stocks to seek short-term opportunities. Jiujuwang’s inclusion in the hot stock list may reflect more on market capital behavior rather than substantive changes in the company’s fundamentals.

1. Liquidity Risk
   : Extremely low trading volume leads to insufficient market depth, making it difficult for investors to complete transactions quickly at their desired prices. The bid-ask spread may widen, and investors may suffer significant losses during emergency sell-offs [0].

2. Fundamental Risk
   : The company is currently in a loss-making position, with a market capitalization of only HK$109 million, resulting in weak risk resistance. It lacks support from recent outstanding financial data or business breakthroughs [0].

3. Share Price Volatility Risk
   : The share price has fallen by over 83% from its historical high of HK$0.820. As a penny stock, it is prone to sharp fluctuations affected by market sentiment and capital flows [0].

4. Information Transparency Risk
   : There is a lack of recent news coverage from mainstream financial media, leaving investors with limited channels to obtain company updates and exposing them to high information asymmetry risks.

1. Technical Rebound Opportunity
   : The current share price is close to its 52-week low of HK$0.100 and historical low of HK$0.088, which may have technical buying support, leaving room for a short-term rebound.

2. Sector Rotation Effect
   : The consumer defensive sector performed well on the day (up 1.33%), which may drive market attention to small-cap food stocks [0].

3. Potential M&A or Restructuring Expectations
   : As a small-cap food enterprise, amid industry consolidation, it may be acquired by a large food enterprise or have the possibility of business cooperation.

The specific catalyst for Jiujuwang (01927.HK) becoming a hot stock is unclear, which may be more affected by market capital rotation and sector effects. The company’s fundamentals are mediocre, it is in a loss-making position, and carries extremely high liquidity risks [0][2].

From an investment perspective, this stock is a typical high-risk small-cap penny stock, which is not suitable for conservative investors. If investors choose to track this stock, they need to closely monitor changes in trading volume and subsequent news, strictly set stop-loss levels, and control their positions. In the absence of a clear fundamental catalyst, it is recommended that investors maintain a cautious wait-and-see attitude and prioritize attention to improvements in the company’s financial data or announcements of major business progress.

: This report is based on analysis of public information and does not constitute investment advice. Trading in small-cap penny stocks carries extremely high risks. Investors should fully understand the relevant risks and make prudent decisions based on their own risk tolerance.