HK Stock Market Move | DAHON TECH (02543) rebounds over 10% to recover IPO price. The company is expected to benefit from the strong market for folding bicycles.

DAHON TECH (02543) rebounded more than 10% today, reaching a high of HK$50.8, recovering from the previous IPO price of HK$49.5. As of the time of writing, it is up 8.75% at HK$50.2, with a trading volume of HK$112.316 million. In terms of news, DAHON TECH announced earlier that on October 4, the exclusive overall coordinator partially exercised the oversubscribed rights issue, involving a total of 1.121 million shares, accounting for approximately 14.15% of the total number of shares allocated. Priced at HK$49.5 per share, the additional net proceeds were HK$52.8 million. The stability period for the global offering ended on October 4. Guotai Haitong released a research report stating that DAHON TECH focuses on the research, development, production, and sales of folding bicycles and related accessories, while also generating license revenue through the "Shared 360 project." Bicycle revenue accounts for 98.1% of the total, with a gross profit margin consistently above 30%. The bank considers DAHON TECH to be in the high-growth folding bike track, particularly in the second-hand transportation track, with a strong growth potential in the segment, coupled with a solid product matrix and channel expansion. They recommend a "hold" rating with a target price of HK$76.57.