6116.HK at HK$0.25 pre-market 03 Jan 2026: oversold bounce possible entry
We start pre-market on 03 Jan 2026 with Xinjiang La Chapelle Fashion Co., Ltd. (6116.HK) trading at HKD 0.25, sitting near its 50- and 200-day averages at HKD 0.25. The focus keyword 6116.HK stock appears cheap on price but shows stressed fundamentals: EPS -0.36 and PE -0.69. Volume is light at 14,000. This piece uses Meyka AI-powered market analysis platform data to frame an oversold bounce strategy for traders seeking a defined risk entry in Hong Kong (HKSE) equities. Company site Company profile image
Price snapshot and pre-market context
6116.HK opened pre-market at HKD 0.26 and is quoted at HKD 0.25 with a day low of HKD 0.23 and day high of HKD 0.27. Trading volume is 14,000.00 shares which is light versus typical stock activity, so price moves can be amplified. The market cap stands at HKD 136,024,496.00 and shares outstanding are 544,097,984.00, both confirming a micro-cap profile on the HKSE in Hong Kong.
Technical setup: oversold bounce plan
Price sits at its 50-day and 200-day averages of HKD 0.25, which can mark a short-term pivot for a bounce. On low volume the stock is vulnerable to volatility; monitors should watch a breakout above HKD 0.28 for initial confirmation or a breakdown below HKD 0.23 to cut risk. A sensible oversold bounce entry uses a tight stop-loss around HKD 0.22 and position sizing that limits downside to a small portfolio percentage.
Fundamentals and valuation
Xinjiang La Chapelle reports EPS of -0.36 and an effective PE of -0.69, reflecting recent losses. Key ratios show current ratio 0.05 and cash per share HKD 0.09, indicating liquidity pressure versus sector peers. Price-to-sales is 0.72 while enterprise value to sales is 6.85, showing mixed valuation signals relative to Consumer Cyclical averages (sector avg PE 19.85).
Catalysts, risks and sector backdrop
Near-term catalysts include any management updates, same-store sales improvement or clearer retail recovery data from China affecting Apparel – Retail. Primary risks are weak liquidity metrics and negative margins; interest coverage is -6.49 and working capital is deeply negative. Consumer Cyclical sector performance has been resilient (1Y +22.71%); 6116.HK must show tangible revenue or margin improvements to re-rate higher.
Meyka grade, analyst framing and model forecast
Meyka AI rates 6116.HK with a score out of 100: 60.83 | Grade: B | Suggestion: HOLD. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. Meyka AI’s forecast model projects a base-case price target of HKD 0.40, a conservative upside of 60.00% versus the current price HKD 0.25, and a downside scenario to HKD 0.15 (-40.00%). Forecasts are model-based projections and not guarantees.
Trading checklist for an oversold bounce
Entry criteria: price reclaim above HKD 0.28 on higher-than-average volume and positive short-term momentum. Risk management: stop at HKD 0.22, target partial profits near HKD 0.40 and re-evaluate above HKD 0.50. Position size: keep exposure small given micro-cap liquidity and fundamental stress; treat as a tactical trade, not a core long-term hold.
Final Thoughts
Key takeaways for 6116.HK stock on 03 Jan 2026: the stock trades at HKD 0.25 on the HKSE in Hong Kong and shows a classic oversold bounce setup with prices sitting at the 50- and 200-day averages. Fundamentals remain weak with EPS -0.36, current ratio 0.05 and cash per share HKD 0.09, so any bounce needs confirmation from volume and improving margin signals. Meyka AI rates 6116.HK with a score out of 100: 60.83 | Grade: B | Suggestion: HOLD — this grade balances sector comparisons and key metrics. For tactical traders, a confirmed reclaim above HKD 0.28 on volume opens a measured upside toward our base-case target HKD 0.40 (implied upside 60.00% from HKD 0.25); a break below HKD 0.23 increases downside risk toward HKD 0.15 (implied downside -40.00%). All forecasts are model-based projections and not guarantees. Use tight stops, small position sizing, and monitor company updates and retail sector trends before increasing exposure.
FAQs
6116.HK may offer a tactical oversold bounce entry if price reclaims HKD 0.28 with higher volume. Given weak fundamentals and low liquidity, treat any trade as short-term and size positions small.
Primary red flags are EPS -0.36, current ratio 0.05 and negative working capital. Interest coverage is -6.49, indicating operational stress and limited liquidity buffer.
Meyka AI’s base-case is HKD 0.40 (implied +60.00%) and a downside scenario HKD 0.15 (implied -40.00%). Use these as model guides, not guarantees, and confirm with volume and fundamentals.
The Consumer Cyclical sector shows stronger 1Y performance versus this stock. Sector strength can help a bounce, but La Chapelle needs revenue or margin improvement to re-rate.
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.
