PLATT NERA (01949) plunged 90% and staged another round of selling off main stocks.

PLATT NERA (01949) staged a dramatic plot of a 90% plunge in just 8 minutes. At 3:33 pm on November 15, PLATT NERA entered "flash crash" mode. The plunge accelerated from 7% to 43.44% and then 72.89%, eventually reaching over 90% by 3:41 pm. Despite a small rebound, the stock closed at 0.143 Hong Kong dollars, down 88.28%. During the rapid decline, trading volume for PLATT NERA surged, with a total transaction value of 124 million Hong Kong dollars for the day. It has been learned that since October, PLATT NERA's stock price has been on a continuous rise, even tripling at one point. Additionally, there have been frequent transfer activities involving PLATT NERA since mid-October, totaling 1.49 billion Hong Kong dollars. The largest transfer was from Fu Zhong Securities, transferring 43.0275 million Hong Kong dollars to Changli Securities. On October 24, Fu Zhong Securities transferred another 17.8849 million Hong Kong dollars to Changli Securities. Interestingly, looking at the buyer and seller broker positions, the largest seller today was Changli, selling a total of 18.652 million shares, followed by Yuenku, Sheng Heng, and Fu Chang, selling 3.478 million, 1.544 million, and 1.312 million shares, respectively. The buyer position of Futu Securities had the highest net purchases at 11.872 million shares, followed by Tiger Securities, Hauli, and Bank of China International, buying 3.722 million, 3.612 million, and 3.244 million shares, respectively. From a fundamental perspective, PLATT NERA has shown almost no bright spots and can even be described as "weak." Public information shows that this Thai company mainly provides information technology (IT) integration solutions, IT support services, and sells equipment in Thailand. The company mainly serves Thai financial institutions, government departments, and agencies, mainly in the administrative, telecommunications, and utilities sectors. As mentioned earlier, this Thai company is exploring opportunities to enter the Chinese market. Recently, PLATT NERA announced that on November 5, 2024, its wholly-owned subsidiary, Baida Investment Holdings Limited (buyer), entered into a memorandum of understanding with Guangzhou Zhuo'er Jewelry Industry Investment Co., Ltd. and Haikou Zhuo'er Jewelry Co., Ltd. (sellers). According to the memorandum of understanding, the buyer intends to acquire all or part of the equity held by the sellers in Ganxian Zhuo'er. In the first half of this year, the company's revenue was only 66.5 million Thai baht, a decrease of 66.7% year-on-year; net profit was approximately 1.2 million Thai baht, a slight increase year-on-year. Looking at the longer-term trends, PLATT NERA's growth prospects are weak. The company's revenue reached as high as 772 million Thai baht in 2018, but by 2023, it had shrunk to 485 million Thai baht, nearly halving its revenue. Profit performance is even worse, except for a high profit of 114 million Thai baht in 2018, the company has struggled to survive near the breakeven line most years, indicating that its business foundation is not solid. Of note, as of the end of June this year, PLATT NERA's cash and cash equivalents were approximately -3.062 million Thai baht, with a high debt-to-asset ratio of 79.7%. With negative cash flow, tight solvency, and a shaky business base, how does PLATT NERA plan to enter the China National Software & Service market? In conclusion, it is clear that PLATT NERA, with characteristics such as a small market value and poor fundamentals, experienced a steep drop in stock prices due to long-term ambush by main funds and violent selling. Hong Kong stocks often witness these heart-pounding moments. The pattern of such stock price fluctuations is also clear: first, a continuous rise entices retail investors to enter the market, then the main funds aggressively sell off, and when retail investors cut their losses, the main funds can collect chips at the bottom, repeating this cycle. Thus, wise investors must be vigilant against such harvesting behaviors.