1007.HK After Hours (18 Dec 2025): Examining the Oversold Bounce Potential
Longhui International Holdings Limited (1007.HK) witnessed a challenging trading session, closing after hours at HK$0.07, down 5.41% from its previous close. With the stock trading at its year low, it begs the question of whether there’s an oversold bounce on the horizon.
Current Price Dynamics and Trading Volume
Longhui International’s current stock price of HK$0.07 is significantly below its 50-day and 200-day moving averages, both at HK$0.67. Today’s volume hit 752,000, well below the average of 3,980,397, indicating reduced investor interest or selling pressure. This decrease in volume can sometimes signal a potential turning point, where a shift in market sentiment could lead to a rebound.
Fundamental Challenges and Financial Metrics
The stock’s fundamentals show weaknesses, with an EPS of -0.15 and a P/E ratio at -0.47, reflecting negative earnings. The company’s book value per share is shockingly negative at -1.90, indicating substantial liabilities exceeding assets. These figures contribute to its ‘Strong Sell’ recommendation by Meyka AI, which rated the stock C- on 3 March 2025.
Meyka AI Insights and Forecasts
Meyka AI has rated 1007.HK with a total score of 66.94, suggesting a ‘HOLD.’ The grade takes into account multiple factors, including sector performance and analyst consensus. Meyka AI forecasts a yearly price target of HK$0.61, presenting an upside of approximately 771%. This forecast suggests potential for material recovery if fundamental improvements occur.
Technical Indicators Supporting a Bounce
From a technical perspective, numerous indicators imply the stock is oversold. With RSI and MACD both at zero, there is substantial room for upward correction. The stock’s current position in the lower range of Keltner Channels (all at HK$0.67) could indicate a potential price correction if upward momentum materializes. Analysts will closely watch for a breach above immediate resistance levels to confirm a bounce.
Final Thoughts
Longhui International Holdings Limited remains a precarious proposition for investors, with its low market cap and negative earnings presenting significant risks. However, Meyka AI’s forecast of a sizable upside could warrant a strategic review for those with high-risk tolerance. Investors should stay informed with 1007.HK updates and employ prudent risk management strategies. Stock prices can fluctuate based on market conditions, economic factors, and company-specific events.
FAQs
The stock dropped by 5.41% due to continuing concerns over its negative earnings and poor financial metrics, coupled with reduced trading volume indicating selling pressure.
Meyka AI rates the stock with a score of 66.94, suggesting a ‘HOLD.’ This reflects a mixed outlook where certain financial and market factors provide potential upside despite current weaknesses.
Given the stock’s position at its year low and technical indicators, an oversold bounce might be possible if market sentiment improves, although risks remain high.
Longhui International Holdings operates in the Consumer Cyclical sector, specifically within the restaurant industry in the People’s Republic of China.
Meyka AI uses a data-driven model to project a yearly price target of HK$0.61, indicating a significant potential upside if market conditions improve.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
