Jiujuwang (01927.HK) Hot Stock Analysis Report: Frequent Technical Patterns, Fundamental Pressures

Jiujuwang Food International Co., Ltd. is an enterprise engaged in the manufacturing and sale of confectionery products in China. It was listed on the Hong Kong Stock Exchange on March 16, 2021, with an offering price of HK$0.75. The company’s main products include aerated candies, gum-based candies, hard candies, pressed candies, and chocolate products, among other categories [1]. As of January 7, 2026, the company’s total share capital is 792 million shares, with a Hong Kong stock market capitalization of approximately HK$109 million, making it a typical micro-cap stock.

From the perspective of business structure, the company’s revenue mainly relies on three segments: its self-owned brand “Kusha” contributes approximately 55.39% of revenue (RMB 175 million), OEM products account for 38.00%, and the rest comes from two other self-owned brands, “Lalab” and “Jiujuwang” [1]. This business structure exposes the company to both the test of brand premium capability and the pressure of limited profit margins from OEM business.

Jiujuwang has recently become a market focus, mainly due to the combined effect of multiple technical and capital-side factors. According to market data, the stock experienced frequent significant fluctuations between December 2025 and January 2026: it closed up 6.92% on December 4, 2025, with a trading volume of 1.155 million shares, a substantial increase from usual levels; it rose another 4.44% on December 24, closing at HK$0.14 [1][2]. This unusual movement of simultaneous price and volume surge quickly attracted the attention of technical traders and short-term speculators.

In terms of technical patterns, the stock has recently seen frequent key technical patterns such as “Death Cross”, “Golden Cross”, and “Range Breakout” [3]. These patterns are often important trigger signals for quantitative trading strategies, thus forming a self-reinforcing cycle of attention. Notably, major capital flow data shows multiple divergence phenomena in August, where “major capital bought but the stock price fell” or “major capital sold but the stock price rose”, reflecting intense competition between bulls and bears on this stock [2].

The company’s recent financial data reveals a worrying downward trend. In H1 2025, the company’s revenue was RMB 163 million, down 10.48% year-on-year; profit attributable to shareholders was only RMB 4.081 million, a sharp 47.83% year-on-year decrease [1]. This sharp deterioration in profitability reflects the combination of multiple pressures: fluctuations in raw material costs, intensified channel competition, and changes in consumer taste preferences.

From an industry perspective, the candy industry is facing profound structural challenges. With the popularization of healthy consumption concepts, market demand for traditional confectionery products continues to shrink. According to industry observations, consumers’ snack category preferences are shifting from traditional candies to healthier options such as nuts, yogurt, and dried fruits [2]. This trend poses a long-term fundamental threat to traditional candy manufacturers like Jiujuwang.

In terms of valuation, the company’s price-to-earnings ratio is currently negative. The stock price has dropped more than 80% from its IPO offering price of HK$0.75, and the current price of approximately HK$0.138 is about 34% lower than the 52-week high of HK$0.210 [2]. This deep decline not only reflects market concerns about the company’s fundamentals but also indicates that the stock price may have already priced in a considerable degree of pessimistic expectations.

: The limited overall growth prospects of the candy industry is an unavoidable systemic risk. The impact of the healthy consumption trend on the traditional confectionery market is structural, which may continue to affect industry prosperity [2].

: The company’s H1 2025 net profit plummeted 47.83% year-on-year, with revenue continuing to decline, putting obvious pressure on profitability. If the company fails to achieve a performance reversal in the second half of the year, its full-year financial performance may deteriorate further.

: As a micro-cap stock with a market capitalization of only approximately HK$100 million, the stock has light daily trading volume (usually only tens of thousands of shares), may have a large bid-ask spread, and is susceptible to artificial manipulation [1]. Large capital inflows and outflows will face significant impact costs and execution risks.

: The stock’s 52-week volatility amplitude is as high as 110%, and its price trend shows highly random characteristics. For investors with low risk tolerance, this level of volatility may exceed acceptable limits.

From a technical analysis perspective, the current stock price is in a consolidation phase at relatively low levels. Key support levels include: HK$0.100 (the 52-week low, an important psychological support) and HK$0.120 (recent low range). Key resistance levels include: HK$0.140 (recent dense trading zone), HK$0.148 (historical high range), and HK$0.210 (52-week high) [1][3].

Investors need to closely monitor whether the stock price can effectively break through the HK$0.140-HK$0.148 resistance zone. If it successfully breaks through with an increase in trading volume, a phased rebound may begin; if it breaks below the HK$0.100 support level, further downward space may open up.

Based on a comprehensive assessment, the core driver of Jiujuwang becoming a hot stock comes mainly from technical factors rather than fundamentals. Frequent technical patterns and unusual movements of major capital have attracted the attention of short-term traders, but the company’s weak performance and industry structural challenges result in obvious lack of fundamental support.

From an investment perspective, this stock shows typical characteristics of a “trading opportunity” rather than an “investment opportunity”. Its high dividend yield (4.58%) is relatively high among low-priced stocks [2], but this may reflect the market’s pessimistic expectations for its performance prospects rather than stable dividend-paying ability.

: This stock is a high-risk micro-cap stock and is not suitable for conservative investors. The weak fundamental trend does not support long-term investment strategies, and it is only suitable for short-term traders who are familiar with technical analysis, can tolerate high volatility, and strictly set stop-loss rules. Investors should make independent judgments and fully assess their personal risk tolerance before making prudent decisions.