Weizhi Holdings (01305.HK): Strategic Acquisitions Drive Growth, Undervalued Opportunity Amid Mini LED Industry Prospects

Weizhi Holdings (01305.HK) has recently become a hot stock in Hong Kong, mainly driven by the HK$155 million acquisition of industrial land in Huizhou announced in September 2025 [1] and its interim performance [4]. The target company of the acquisition holds approximately 86,118 square meters of industrial land in Boluo County, Guangdong Province, aiming to expand production capacity for LED backlight business [1], and this transaction is classified as a major transaction and connected transaction [0]. The interim report shows that the company’s revenue in the first half of 2025 was HK$1.127 billion (a slight year-on-year decrease of 3.3%), but the profit attributable to shareholders reached HK$28.505 million, an increase of 18.93% year-on-year [4], with earnings per share of 12.97 Hong Kong cents [0].

The company’s stock price has performed steadily, with a year-to-date return of 27.91% and a 1-year return of 35.42%, outperforming the Hang Seng Index [0]. The current stock price is in the lower-middle part of the 52-week range (HK$0.500-HK$1.050) [3], with a market capitalization of approximately HK$134 million to HK$145 million [0].

1. Strategic Acquisition Aligns with Industry Trends
   : Acquiring industrial land to expand LED backlight business capacity comes at a time of rapid development in the Mini LED industry. The shipment volume of Mini LED backlights is expected to reach 13 million units in 2025, with growth exceeding 100% in the automotive display segment [5].
2. Undervalued Characteristics
   : The company’s P/E ratio is only 2.62-3.11 times [0], far below the industry average, reflecting undervaluation [2].
3. Healthy Financial Structure
   : Net asset value per share is HK$4.23 [0], with significant profit growth indicating improved operational efficiency [4].

• Opportunities
  : The expansion of Mini LED technology applications in automotive, display and other fields [6] brings growth space for the company’s LED backlight business; undervaluation provides potential investment value [0].
• Risks
  : Low trading volume (turnover rate 0.08%) [0] and limited liquidity may lead to increased stock price volatility [3]; intensified industry competition may affect gross profit margin [6].

Weizhi Holdings strengthens its capacity through strategic acquisitions, benefits from the growth trend of the Mini LED industry, has good financial performance and is undervalued. However, investors should pay attention to liquidity risks and conduct a comprehensive assessment combining industry development prospects and the company’s fundamentals [0].