V Holdings (01305.HK) Hot Stock Analysis Report: Strategic Layout and Valuation Assessment Following the Completion of the HK$155 Million Acquisition

V Holdings (01305.HK) has recently emerged as a hot target in the Hong Kong stock market, primarily driven by the major transaction of

[1][2]. This acquisition has granted the company the right to use an industrial land plot in Boluo County, Huizhou City, Guangdong Province, with a total area of approximately 86,118 square meters, including the developed Phase I industrial land (already leased to an independent third party for an 18-year term, with an expected annual rental income of approximately HK$8.7 million) and the vacant Phase II land [1]. This strategic asset acquisition lays the hardware foundation for the company to establish core production facilities, reduce its reliance on third-party manufacturing facilities, and optimize its operating cost structure.

In terms of transaction structure, this acquisition constitutes a connected transaction—Ms. Lu Fang, the seller, is an executive director and major shareholder of V Holdings, indirectly holding approximately 58.31% of the company’s issued share capital [1]. Dayou Financing Limited, the independent financial advisor, assessed that the transaction terms are fair and reasonable, and are in the overall interests of the company and its shareholders. The transaction was first disclosed on September 15, 2025, went through the circular release on November 25, 2025, and the shareholder approval at the general meeting on December 15, 2025, before successfully completing the handover at the end of the year.

As of the close of trading on January 6, 2026, V Holdings’ share price closed at HK$0.710, with a market capitalization of approximately HK$156 million and an enterprise value of HK$404 million [0][3]. The current trailing P/E ratio is only

, placing it in a low valuation range. From a price position perspective, the current price is in the lower-middle range of its 52-week volatility (HK$0.500-HK$1.050), with a 10.13% pullback year-to-date, underperforming the Hang Seng Index (which rose 3.23% over the same period) [0]. However, from a 1-year perspective, the company has achieved a positive return of 18.39%, reflecting the market’s gradual digestion of acquisition expectations.

It should be noted that the company’s long-term share price performance is under pressure—its cumulative 3-year return is -52.67%, and its cumulative 5-year return is -54.35%, both significantly underperforming the Hang Seng Index (which rose 26.05% and 3.96% over the same respective periods) [0]. This prolonged weak performance reflects the operational pressures the company has faced historically, including the ongoing impact of factors such as intensified industry competition and price fluctuations in the LED market.

The LED display industry in which V Holdings operates has recently seen active capital operations. 24 listed companies including TCL Technology, BOE Technology, Luxshare Precision, and Skyworth Digital have recently intensively disclosed capital moves such as capital increases and capacity expansions, and equity acquisitions, with 32 major industry investment projects updating their progress, covering areas such as Mini-LED, MicroLED, OLED, and automotive displays [4]. Against this backdrop, as one of the world’s largest automotive backlight manufacturers (calculated by product shipment volume), V Holdings is expected to benefit from structural opportunities brought by the growing demand for displays in new energy vehicles and smart vehicles [5].

Founded in Hong Kong with a history of over 30 years, the company is one of China’s top manufacturers of high-quality LED backlight and LED lighting products, with businesses covering product R&D, design, manufacturing, and sales. It has developed over 1,000 new LED backlight products and over 100 new LED lighting products in China, Hong Kong, Taiwan, and Japan, holds over 200 patents registered in China, and has approximately 4,314 employees [5]. The company’s business segments include LED backlights, LED lighting, funds, energy management, module manufacturing, and installation and maintenance services, and has recently expanded into semiconductor memory chip procurement business to capture industry growth demand [5].

The strategic value of this acquisition lies not only in the land asset itself, but also in providing a critical capacity support foundation for the company’s long-term development. As a leading enterprise in the automotive backlight sector, V Holdings is under pressure to expand its capacity to meet growing market demand against the backdrop of the rapid development of the smart automotive industry. The self-owned industrial land acquired through this transaction allows the company to integrate manufacturing, production, and related processes, reducing its reliance on external facilities, thereby gaining competitive advantages in cost control and supply chain stability.

However, investors should recognize that the period from land acquisition to capacity release requires a long construction cycle, with limited direct contribution to the company’s earnings in the short term. The rental income from the developed Phase I land (approximately HK$8.7 million per year) can provide stable cash flow contribution, but there are still uncertainties regarding the capacity construction progress and future absorption capacity of the vacant Phase II land.

The current trailing P/E ratio of 3.05x does indicate valuation appeal, but multiple risk factors underlie this low valuation that need to be considered. First, the company’s market capitalization is only HK$156 million, placing it in the micro-cap category, with relatively low liquidity and high share price volatility. Second, the prolonged weak share price performance reflects the market’s cautious attitude towards the company’s fundamental growth prospects, and the significantly negative 3-year and 5-year returns cannot be ignored. In addition, the connected transaction nature makes the protection of minority shareholders’ interests a continuous concern, despite the independent financial advisor’s recognition of the fairness of the transaction terms.

Risk Type	Specific Description	Risk Level
Liquidity Risk	Market capitalization of only HK$156 million; micro-cap characteristics lead to large bid-ask spreads, making it difficult for large funds to enter or exit	Medium-High
Connected Transaction Governance Risk	The seller is an executive director and major shareholder; continuous attention is required on minority shareholder interest protection mechanisms	Medium
Capacity Construction Cycle Risk	The 86,118 sqm industrial land requires a long construction period, with uncertainty regarding earnings contribution	Medium
Long-term Share Price Performance Risk	Significantly negative 3-year/5-year returns, reflecting the market’s cautious attitude towards fundamentals	Medium
Industry Competition Risk	The LED industry is highly competitive, with pressure from large competitors such as BOE Technology, Leyard Optoelectronic, and TCL	Medium

: After acquiring self-owned industrial land, the company can reduce its reliance on third-party manufacturing facilities, which is expected to lower production costs and improve profit margins in the long term.

: As one of the world’s largest automotive backlight manufacturers, the company directly benefits from the growing demand trend for displays in the new energy vehicle and smart vehicle industries.

: If the low valuation level of 3.05x is accompanied by progress in capacity construction and new order acquisition, it may trigger market repricing.

: Over 200 patents registered in China provide the company with a technological moat, maintaining its competitive advantage in the high-end LED backlight market.

In the short term (1-3 months), the market will focus on the integration progress after the acquisition completion and announcements of capacity construction plans, with the share price likely to form technical support in the HK$0.65-HK$0.70 range. In the medium term (3-6 months), attention should be paid to the confirmation of Phase I rental income and the development progress of Phase II land. In the long term (6-12 months), the progress of capacity release and new order acquisition will become the key drivers of share price performance.

The core driver behind V Holdings’ recent status as a hot stock is the HK$155 million acquisition completed at the end of 2025, which has brought the company an 86,118 sqm industrial land plot in Huizhou, laying the foundation for establishing core production facilities, reducing operating costs, and alleviating capacity bottlenecks. As one of the world’s largest automotive backlight manufacturers, the company has business development potential against the backdrop of the smart automotive industry’s growth.

From a valuation perspective, the trailing P/E ratio of 3.05x is indeed at a low level, but this low valuation is a comprehensive reflection of the company’s long-term operational pressures, industry competitive landscape, and micro-cap liquidity risks. After a 10.13% pullback year-to-date, the current price is in the lower-middle range of its 52-week interval, and attention should be paid to the performance of the HK$0.65-HK$0.70 support range.

It is recommended that investors focus on the following key observation points: the progress of capacity construction after the acquisition completion, new order acquisition, the progress of rental income confirmation, and the share price performance at key support levels. As the company is a high-volatility micro-cap stock, investors should carefully evaluate investment decisions based on their own risk tolerance.

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[1] Sina Finance - V Holdings Completes Acquisition of 100% Equity Interest in Joyful Family for HK$155 Million

[2] Pjtime.com - V Holdings Completes HK$155 Million Acquisition, Secures Huizhou Industrial Land to Build Core Capacity

[3] Yahoo Finance - V Holdings (1305.HK) Stock Price, News, Quotes and Records

[4] Pjtime.com - LED Display Industry News

[5] Futu NiuNiu - V Holdings Company Profile and Introduction

[0] Jinling Analysis Database (Market Data Integration)