HK Stock Market Move | Red Star Macalline Group Corporation (01528) rebounds by more than 12% with a A-share price-to-book ratio of only 0.36. Recently, it has started to branch out into selling cars.

Red Star Macalline Group Corporation (01528) rebounded more than 12%, after the stock fell over 12% yesterday. As of the close of the market, it rose 12.86% to 2.37 Hong Kong dollars, with a turnover of 1.31 billion Hong Kong dollars. On the news front, the China Securities Regulatory Commission's "14 Measures for Market Value Management" was officially released recently, requiring listed companies to improve their market value management level and protect investor interests. In particular, it is required that main index component stocks and long-term companies with a net asset value below market value develop valuation enhancement plans. China Securities Co., Ltd. pointed out that the release and implementation of the market value management guidelines will have a positive effect on listed companies in the construction and decoration industry with long-term net asset value below market value. The introduction of market value management guidelines will guide companies to enhance their own value through methods such as increasing holdings, buybacks, capital operations, dividends, etc., and return to a PB ratio of 1. Data shows that the current price-to-book ratio of Red Star Macalline Group Corporation's A-shares is 0.36, while the H-shares price-to-book ratio is only about 0.19. It is worth noting that Red Star Macalline Group Corporation has started to expand into selling cars, with the company recently opening its first " Space" store in partnership with Jianfa Auto in Chengdu. In the mid-year report of 2024, the company achieved a revenue of 4.225 billion yuan in the first half of the year, a year-on-year decrease of 25.35%; the net loss attributable to the parent company shareholders was 1.253 billion yuan, a decrease of 1.374 billion yuan from the same period last year, a year-on-year decrease of 1140.34%. The company continued to post losses in the third quarter of 2024, with revenue of 5.815 billion yuan and a net loss attributable to parent company shareholders of 1.887 billion yuan.