Pre-market 09 Jan 2026: 1381.HK Canvest HK$4.88 oversold bounce to HK$5.80
1381.HK stock opened pre-market at HK$4.88, offering a clear oversold bounce setup for Hong Kong traders in the waste management sector. Volume is elevated at 11,603,749 shares versus an average of 4,581,259, signalling short-term buying interest ahead of regular trading. The stock trades on the HKSE and sits near its year high HK$4.89 and year low HK$3.92, creating a tight technical band. This article examines valuation, trading signals, risks, and a near-term HK$5.80 price target that frames the upside case.
1381.HK stock market snapshot and session context
Canvest Environmental Protection Group (1381.HK) is trading pre-market on the HKSE at HK$4.88 with a tiny intraday range HK$4.87–HK$4.89. Market cap is HK$11.86B and relative volume is 2.53, indicating heavier interest than normal. Sector moves in Hong Kong industrials are supportive, with the Industrials sector YTD performance near +32.95%, which can lift names tied to infrastructure and waste management.
1381.HK stock technical setup for an oversold bounce
Price sits above the 50-day average HK$4.80 and 200-day average HK$4.62, giving a constructive technical base for a bounce. Short-term signal strength is driven by volume spike and the stock’s quick recovery from the HK$3.92 12-month low. Traders looking for an oversold bounce should watch intraday support at HK$4.87 and resistance at HK$4.89 and HK$5.20.
1381.HK stock fundamentals and valuation metrics
Canvest reports EPS HK$0.38 and a trailing PE of 12.84, with PB at 1.20 and debt-to-equity 1.35. The balance shows a tight current ratio 0.79 and working capital pressure, but operating margins remain strong (operating profit margin 37.23%). These metrics justify a moderate valuation premium versus peers given steady waste-to-energy cash flows.
1381.HK stock Meyka AI grade and forecast model
Meyka AI rates 1381.HK with a score out of 100: 72.92 (B+) — BUY. This grade factors S&P 500 and sector comparisons, financial growth, key metrics, analyst consensus, and forecasts. Meyka AI’s forecast model projects a 12-month price of HK$5.80 (implied +18.81% vs HK$4.88), a 3‑year projection of HK$7.08 (implied +45.00%), and a 5‑year estimate of HK$8.36. Forecasts are model-based projections and not guarantees.
1381.HK stock catalysts, volume and trading strategy
Catalysts for a sustained bounce include contract wins in municipal waste, better working capital conversion, or a stronger sector re-rating. Elevated pre-market volume 11,603,749 and relative volume 2.53 suggest short-covering or fresh accumulation. For an oversold bounce strategy, consider tight stop-loss near HK$4.70, partial profit at HK$5.20, and a target of HK$5.80 for swing traders.
1381.HK stock risks and downside controls
Key risks include receivables strain (days sales outstanding 257.57), leverage (net-debt/Ebitda high), and low current ratio 0.79. A failure to convert project backlog into cash could push price below the recent band and invalidate the bounce. Use position sizing and a stop-loss; institutional investors should seek updated earnings or operational updates before scaling.
Final Thoughts
We view 1381.HK stock as a tactical oversold bounce candidate in Hong Kong pre-market trade at HK$4.88. Valuation is reasonable with PE 12.84 and PB 1.20, while operating margins and recurring waste-to-energy cash flows support upside. Meyka AI’s model projects HK$5.80 in 12 months (implied +18.81%) and HK$7.08 over three years (implied +45.00%), providing a structured reward path for risk-tolerant traders. Volume is confirming the move, with 11,603,749 shares traded pre-market versus an average 4,581,259, which strengthens the short-term case. However, working capital strain (current ratio 0.79) and high receivables remain material risks that could flip the setup quickly. Our practical trade plan: enter scaled positions on strength above HK$4.95, place a protective stop near HK$4.70, take partial profits at HK$5.20 and consider the Meyka AI HK$5.80 target if sector momentum continues. This is market analysis, not investment advice; use risk controls and confirm with company updates and earnings releases on the HKSE.
FAQs
What makes 1381.HK stock an oversold bounce candidate?
Heavy pre-market volume (11,603,749) and price near short-term averages suggest short-covering and quick buying interest. Technicals show support around HK$4.87 and the 50-day average at HK$4.80, creating a classic bounce entry for active traders.
What are the key valuation metrics for 1381.HK stock?
Canvest trades at PE 12.84, PB 1.20, EPS HK$0.38, and market cap HK$11.86B. These figures point to moderate valuation relative to steady waste-to-energy cash flows but reflect leverage and working capital pressure.
What price targets does Meyka AI assign to 1381.HK stock?
Meyka AI’s forecast model projects HK$5.80 in 12 months (implied +18.81%) and HK$7.08 in three years (implied +45.00%). Forecasts are model-based projections and not guarantees.
How should traders manage risk for an oversold bounce in 1381.HK stock?
Use a tight stop-loss near HK$4.70, scale into strength above HK$4.95, and book partial profits at HK$5.20. Monitor receivables, liquidity ratios, and upcoming earnings for signs the bounce lacks fundamental support.
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.
