Movement Alert|DeepWisdom Declines 6.6% in Regular Trading, Profit-Taking Pressure Persists Amid Valuation-Fundamental Divergence

Market Focus06-22

On June 22, DeepWisdom declined 6.6% in regular trading, trading at 329.2 HKD/share, with turnover of HKD 9.1673 million.

On the news front, DeepWisdom has accumulated massive gains since its IPO on May 27 at a listing price of HKD 55.5, but persistent fundamental concerns continue to weigh on market confidence. The company's net profit has declined for three consecutive years, shrinking approximately 85%; gross margin has deteriorated from 31.2% to 25.5%; and core revenue remains heavily reliant on traditional advertising placement services. Although the Deep Agent product has secured 37 commercial contracts, the tension between elevated valuations and weakening fundamentals remains the central risk, with profit-taking pressure continuing to be released.

Within the Advertising sector, individual stocks showed broad weakness. Among peers, Jihong Co up 0.79%, Qunabox Group down 4.16%, Mobvista down 2.82%, Most Kwai Chung down 2.08%, CH Frontier Tec down 1.31%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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