2516.HK FAR International (HKSE) down 22.79% pre-market 22 Jan: liquidity risk
The 2516.HK stock plunged 22.79% in pre-market trade on 22 Jan 2026, sliding to HKD 1.05 on heavy volume of 13,348,000.00 shares. We see the move as a sharp liquidity-driven sell-off after an intraday gap from an open at HKD 1.36 to a low of HKD 1.05. The company, FAR International Holdings Group Company Limited (2516.HK) listed on the HKSE in Hong Kong, remains in the Industrials / Integrated Freight & Logistics sector and shows mixed fundamentals, including a PE of 52.50 and cash per share HKD 0.95. This pre-market drop raises questions about receivables, short-term coverage and near-term guidance.
Pre-market price action for 2516.HK stock
FAR International (2516.HK) opened at HKD 1.36 and hit a pre-market low of HKD 1.05, down 22.79% versus the previous close. Volume spiked to 13,348,000.00 shares versus an average volume of 2,804,819.00, a relative volume of 4.71, indicating heavy selling pressure. Intraday volatility and the gap from HKD 1.36 point to execution by larger holders rather than retail momentum.
Fundamentals and valuation snapshot of 2516.HK stock
On reported metrics FAR shows EPS HKD 0.02, a trailing PE of 52.50, and book value per share HKD 0.89. Price-to-sales is low at 0.40, while enterprise value to sales is 0.47, reflecting small-cap logistics valuation in Hong Kong. Working capital and cash per share HKD 0.95 provide short-term support, but negative operating cash flow per share at -0.04 flags liquidity needs.
Balance sheet, cash flow and key ratios
Debt to equity is 0.93 and interest coverage is 4.61, so FAR (2516.HK) carries meaningful leverage for a young logistics operator. The current ratio of 1.65 suggests reasonable short-term coverage, but free cash flow per share is -0.05, signaling cash conversion strains. Receivables days of 66.30 versus payables days of 9.90 create a stretched cash conversion cycle of 56.41 days.
Technical picture and market context for 2516.HK stock
Technically the stock was overbought before the drop: RSI 88.15 and MFI 100.00 suggested buying exhaustion. Price averages show a 50-day at HKD 0.82 and 200-day at HKD 0.78, so the current HKD 1.05 sits above major moving averages. In the Industrials sector in Hong Kong, peers have 1M performance near 4.20%, but logistics-specific volatility remains elevated.
Meyka AI grade and analyst context for 2516.HK stock
Meyka AI rates 2516.HK with a score out of 100: 59.99 / Grade C+ / Suggestion: HOLD. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. Independent rating components show mixed signals: PB looks attractive while DCF and debt metrics weigh negative, producing a balanced but cautious view.
News drivers and risks affecting 2516.HK stock
We find no fresh company earnings release, but the sharp pre-market sell-off aligns with liquidity rotation and sector re-pricing in small-cap logistics. Key risks include extended receivables, negative free cash flow, and debt servicing if volumes fall. Market microstructure—thin order books at low price levels—can magnify moves for 2516.HK.
Final Thoughts
Key takeaways for the 2516.HK stock: the pre-market 22.79% drop to HKD 1.05 on 13,348,000.00 shares is a liquidity-dominated decline rather than a single fundamental disclosure. Valuation is mixed: low price-to-sales (0.40) and book value near HKD 0.89 contrast with a high trailing PE (52.50) and negative free cash flow per share (-0.05). Meyka AI’s forecast model projects a short-term monthly target of HKD 1.50 and a yearly model figure of HKD 0.50; versus the current price of HKD 1.05, that implies a model upside of 42.86% to the monthly figure and a downside of -52.26% to the yearly figure. These forecasts are model-based projections and not guarantees. For investors in Hong Kong (HKSE) we recommend watching liquidity, receivables ageing and upcoming guidance; if smaller holders continue to exit, price pressure can push the stock closer to tangible book. Meyka AI provides this as an AI-powered market analysis platform insight for monitoring 2516.HK
FAQs
Why did 2516.HK stock fall pre-market today?
The pre-market fall of 22.79% to HKD 1.05 was driven by heavy volume and likely liquidity selling. No company earnings were announced; stretched receivables and thin order books amplified the move.
What is Meyka AI’s grade for 2516.HK?
Meyka AI rates 2516.HK 59.99 / C+ with a suggestion to HOLD. The grade balances valuation, sector comparison, financial growth, and analyst signals but is not investment advice.
What are the realistic price targets for 2516.HK stock?
Meyka AI’s model projects monthly HKD 1.50 and yearly HKD 0.50. Versus the current HKD 1.05, that implies +42.86% to the monthly target and –52.26% to the yearly target. Forecasts are projections, not guarantees.
Which financial ratios should investors watch for 2516.HK?
Watch free cash flow per share -0.05, debt-to-equity 0.93, current ratio 1.65, and days sales outstanding 66.30. These show cash conversion and leverage risks in HKD terms.
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.
