00401.HK (Wanjia Group): Analysis of the Contradiction Between Soaring Stock Price and Fundamental Deviation

00401.HK (Wanjia Group) has become a hot spot in the Hong Kong stock market due to its sharp rise in stock price [0]. According to the hot list data from the East Money App, the stock has risen 182% year-to-date, and some reports show that the maximum increase is 210.6% [1][2], which is called one of the best-performing stocks globally in 2025 [2].

Although the stock price performance is outstanding, the company’s fundamentals show an obvious deviation: In the first half of 2025, Wanjia Group achieved revenue of HK$85.706 million (a year-on-year increase of 2.4%) [0], but the operating loss attributable to shareholders reached HK$712,000 [3]. In addition, the company has a small market capitalization (about HK$78.43 million) [0], and there is a problem of insufficient liquidity [2].

Wanjia Group’s core business is hemodialysis services, which benefits from industry policy support [0][1]. As an important part of the healthcare sector, the hemodialysis industry has received market attention in recent years [1], but the company has failed to convert industry dividends into profit growth [3].

1. Fundamental Risk
   : Sustained loss status and slow revenue growth [3];
2. Liquidity Risk
   : Small market capitalization leads to inactive trading and large stock price fluctuations [2];
3. Valuation Bubble Risk
   : The stock price increase far exceeds fundamental support, and there is a possibility of correction [0][1].

There is a significant contradiction between the stock price performance of 00401.HK and its fundamentals, and investors need to treat it cautiously. Although the industry prospect is optimistic, the company’s current profit status and liquidity issues are worthy of attention [0][2].