HK Stock Market Move | Activation GP (09919) rose more than 6%, with a dividend yield far exceeding the average level of the Hong Kong marketing industry. Actively seize the structural opportunities of high-end brands.

ACTIVATION GP (09919) rose by more than 6%, as of the time of writing, it increased by 5.19% to 0.81 Hong Kong dollars. In terms of news, ACTIVATION GP previously announced that the final dividend for the year ending December 31, 2025, is 3.20 Hong Kong cents per share, with a special final dividend of 3.30 Hong Kong cents per share, totaling approximately 48.4 million Hong Kong dollars, with a total dividend payout for the year of approximately 65.53 million Hong Kong dollars. It is reported that in response to the cyclical adjustments in the luxury goods industry, ACTIVATION GP is keen on seizing the structural opportunities in the emerging fields of beauty and sportswear, as well as high-end Chinese brands. The company has organized immersive experience events for several well-known beauty brands, including the celebration of LANCOME's 90th anniversary journey and the LA PRAIRIE caviar celestial journey, setting new standards for experiential marketing in the high-end beauty industry. In the article "A Safe Haven in the Volatile Market: Value Reassessment of ACTIVATION GP (09919)", it points out that against the backdrop of heightened global risk aversion, a renewed focus on high dividend strategies, and a batch of small-cap quality companies in the Hong Kong stock market with solid fundamentals, ample cash flow, and historically low valuations are experiencing a value reassessment opportunity. The company's PE (TTM) is only about 8 times, with a dividend yield approaching 10%, well above the average level in the Hong Kong stock market marketing industry. The company also holds nearly 300 million Hong Kong dollars in net cash, with no interest-bearing liabilities, making its financial fundamentals extremely solid. Furthermore, the company has a long-standing policy of high dividend payouts, with a stable payout ratio of around 80%, which is rare among small-cap stocks in the Hong Kong stock market. After deducting net cash, the company's implied PE on the business end is only 6 times, with clear valuation recovery potential.