Huitongda Network (9878.HK) recently announced that it has received the filing notice by the CSRC and the listing approval by the Hong Kong Stock Exchange regarding its application for the full circulation of H shares. This marks a key step in the company’s efforts to optimize its capital structure and enhance market liquidity. Upon the completion of H share full circulation, Huitongda’s negotiable market capitalization is expected to significantly increase, which would in turn create strong market awareness and valuation recovery momentum.
Increasing Circulating Shares to Boost Trading Activity
According to the announcement, the number of H shares in circulation will increase by approximately twofold upon the completion of conversion and procedures, leading to a substantial increase in public float. Stock analysts generally believe that such an increase will optimize trading structure, encourage market participation, and attract more institutional investors and passive funds.
In the Hong Kong stock market, liquidity has been one of the key factors influencing valuation. With a material increase in free float, it is expected that Huitongda will see an improved pricing efficiency in the secondary market, laying the foundation for a proper reflection of its intrinsic value.
Based on its recent share price performance, the market has also responded favourably towards the expected improvement in fundamentals and its progress in H share full circulation, with the share price standing firm above the HK$10 mark. The company, especially its upcoming performance, is expected to be increasingly under investors’ radar.
Earnings Growth, Share Repurchase, and Dividend Distribution to Progressively Realize Its Capital Market Strategy
While optimizing its capital structure, Huitongda has been steadily implementing its plans for business growth and improving shareholders’ return. The expectation of “earnings growth + share repurchase plan + dividend distribution” has essentially formed a positive feedback loop, garnering investors’ attention.
On operations, Huitongda remains committed to pursuing high-quality growth, seeking strategic transformation by focusing on supply chain upgrades, self-owned brands development, and AI empowerment. The market remains optimistic over its prospects of achieving a double-digit earnings growth in the future. Supported by the substantial improvement in profitability, Huitongda may also enter a window of valuation recovery.
In terms of shareholders’ return, Huitongda has used its capital reserves to offset accumulated losses, reducing its accumulated losses to RMB0. This has essentially removed the key potential obstacle in dividend distribution, laying the foundation for a stable dividend policy in the future. Considering its strong cash position and stable cash flow performance, the possibility of a dividend return should further boost its market performance.
In addition, Huitongda previously announced a share repurchase plan of up to RMB500 million, and has backed up its confidence with a series of repurchase activities. According to public disclosure, since 25 November 2025, Huitongda has repurchased its shares for 20 trading days, buying a total of 1,395,700 shares over the past two months. The sustained buyback activities have provided solid support to its share price, while also highlighting management’s confidence and recognition of its long-term value.
Liquidity Enhancement and Fundamental Improvement to Drive Re-rating
From a medium-to-long-term perspective, H share full circulation is not merely a one-off capital structure movement, but an important milestone in Huitongda’s strategic transition. On the one hand, the expansion of free float is expected to enhance market liquidity and facilitate broader investor participation; on the other hand, with a clear path to earnings growth, the improvement in underlying fundamentals is also providing a strong support for valuation recovery.
On the combination of “full share circulation + share repurchase + dividend distribution”, Huitongda’s capital market narrative is becoming increasingly clear, forming a positive loop with improved liquidity to boost market attention; earnings recovery to strengthen underlying fundamentals, and enhanced shareholders’ return to induce investment appetite.
To Huitongda, the market believes that the implementation of H share full circulation will open new and broader capital market channels for the company. As Huitongda continues to deliver on its business and capital market initiatives, it may be at the inflection point of revaluation, entering a new phase of strong share price performance.
