Lin Qingxuan's stock price dropped 8.62% to HKD 59.90 on March 27, with a trading volume of HKD 7.2773 million.

Economic Observation Network — Lin Qingxuan (02657.HK) closed at HK$59.90 on March 27, down 8.62% on the day. During the session, it touched a low of HK$59.90, setting a recent low.

Reasons for the stock price fluctuation

The stock has fallen below key moving-average supports such as the 5-day, 10-day, and 20-day lines. The 5-day moving average (HK$65.81) and the 10-day moving average (HK$67.98) have formed a clearly downward gap. The lower band of the Bollinger Bands (HK$58.56) has become the next support level, but the stock price still remains within a falling channel. Although the MACD histogram is 0.29, the divergence value (-2.487) continues to stay below the signal line (-2.632), indicating weak medium- to long-term momentum. In the KDJ indicator, the J-line has dropped to -1.194, placing it in the oversold range, but the volume ratio is only 0.74 and the turnover rate is 0.11%, suggesting that technical rebounds lack strength.

Capital flow situation

On the day, total net outflows were HK$1.3558 million. Of this, net outflows from main-force funds were HK$0.2013 million (all sell orders with no buy orders), and net outflows from retail investors were HK$1.1545 million. The main-force average transaction price (HK$61.00) was below the retail average price (HK$62.29), reflecting a firm de-leveraging stance by institutions. The full-day trading value was only HK$7.2773 million, showing a significant contraction compared with the earlier period. In a low-liquidity environment, even a small number of sell orders can amplify the downside move.

Performance and operations

The company released its 2025 financial report on March 24, showing revenue同比 growth of 102.5% to RMB 2.450 billion and net profit growth of 92.9% to RMB 360 million. Despite the impressive results, the stock price continued to fall for three consecutive days after the report, with a cumulative decline of over 17%. Some investors chose to exit with the phrase “good news cashed in.” Although the earnings growth is high, as of March 27 the company’s price-to-earnings ratio (TTM) was still 21.28x, higher than the average level of the HK-listed skincare segment. Whether the earnings growth rate can continue to support the valuation remains a key concern for the market.

Industry and sector performance

On the same day, the Hong Kong-listed skincare and cosmetics sector rose 1.11%, but funds were concentrated in leading stocks, and Lin Qingxuan—being a secondary listed stock (listed in 2025)—has higher volatility. The Hang Seng Index rose 0.38% that day, and overall market sentiment did not deteriorate significantly. Although the company’s R&D investment increased to RMB 46.80 million in 2025 (up 53.8% year over year), the R&D expense ratio is under 2%, far below that of international giants. In addition, the core single product—serum oil—contributed over 41% of revenue, and discussions in the market have focused on the balance of the product matrix and the pressure from the cost of traffic.

The above information is compiled based on publicly available materials and does not constitute investment advice.

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