HK Stock Connect Insight | STAR SHINE HOLDINGS (01440.HK) Up Over 30% Since Stock Connect Inclusion; Board Proposes 1-for-4 Share Split Announced on October 9

On October 22, 2026, STAR SHINE HOLDINGS (01440.HK) opened higher before retreating in volatile trading, and was quoted at HKD 15.310 as of 13:33, down 1.73%, with a turnover of about HKD 14.37 million and a market capitalisation of about HKD 19.287 billion based on the latest price. The stock touched a low of HKD 15.130 and a high of HKD 16.000 during the day, with an amplitude of 5.58%.

According to the data, STAR SHINE HOLDINGS' share price over the past week (October 14 to October 22) continued to retreat. The stock touched an intraday high of HKD 23.500 on September 22, a record high since listing, and has since retraced by more than 30% cumulatively.

It is understood that on September 7, the new round of regular adjustments to Stock Connect officially took effect. The number of constituents of the Hang Seng Composite Index increased from 534 to 580, and STAR SHINE HOLDINGS (01440.HK) was included, and was thereby added to Stock Connect.

Public information shows that Star Shine Holdings Group Limited listed on the Main Board of HKEX on January 13, 2021 at an offer price of HKD 0.400, offering 315 million shares globally, raising net proceeds of about HKD 85.60 million. The issued shares are about 1.260 billion (as at October 22, 2026).

At present, the current price of HKD 15.310 is up about 37 times cumulatively from the offer price of HKD 0.400. After joining Stock Connect, the share price has risen 31.3% cumulatively from its September 7 close of HKD 11.660 to date. In terms of market capitalisation, the total market capitalisation was about HKD 19.287 billion based on the intraday price on October 22.

It is understood that Hang Seng Indexes Company announced the results of its quarterly review as at June 30 on August 21, and STAR SHINE HOLDINGS was included in the Hang Seng Composite Index, with the constituent changes taking effect on September 7.

The announcement disclosed that on October 9, 2026, STAR SHINE HOLDINGS announced that the board proposed to split each existing issued and unissued share of HKD 0.01 in the company's share capital into four subdivided shares of HKD 0.0025 each on a 1-for-4 basis, and to change the board lot size from 2,500 shares to 500 subdivided shares. As at the announcement date, the company had 1.260 billion issued shares (including 230,000 treasury shares), which will become 5.040 billion subdivided shares after the split. The share split is conditional on, among other things, the passing of an ordinary resolution at the extraordinary general meeting and the Stock Exchange's approval for the listing and trading of the subdivided shares; the company will hold an extraordinary general meeting on November 19, 2026, and the split is expected to take effect on November 23.

The basis for STAR SHINE HOLDINGS' inclusion lies, first, in its inclusion in the Hang Seng Composite Index, which gave it the "index identity" of a Stock Connect eligible security. Second, the company's market capitalisation continued to rise around the review period: based on the closing price of HKD 15.000 on June 30, 2026, the total market capitalisation was about HKD 18.9 billion, well above the HKD 4 billion market capitalisation threshold for small-cap Stock Connect eligible securities. In addition, the securities added in this adjustment were concentrated in AI, robotics, innovative drugs and high-end manufacturing, and STAR SHINE HOLDINGS, as an "IP investment and derivatives operator", is consistent with this structural direction. (The above is an inference based on public rules and data, not an official determination by the exchange. The specific reason for inclusion is subject to the exchange's announcement.)

Although this Stock Connect inclusion provides STAR SHINE HOLDINGS with institutional conditions to broaden southbound capital participation and improve liquidity, the company's share price once spiked to HKD 23.500 after inclusion and has since retraced by more than 30%, occurring alongside fundamentals of a turnaround to profit in the interim period.

Public information shows that STAR SHINE HOLDINGS' core business is the investment and management of intellectual property (IP), covering the full chain of services from IP incubation and operation to commercial value development, and promoting the implementation of IP derivatives through a supply chain management system; traditional businesses include lace manufacturing, dyeing and finishing services and footwear sales. By 2025 revenue composition, footwear sales accounted for 83.4% of total revenue, lace manufacturing 13.6%, dyeing and finishing services 2.2%, and IP-related products 0.7%.

On the financial side, the company's revenue in the first half of 2026 was RMB 163 million; profit attributable to owners of the parent was RMB 24.249 million, compared with a loss of RMB 22.511 million in the same period last year, achieving a turnaround. During the period, the IP peripheral goods segment performed strongly, contributing a segment profit of about RMB 13.5 million; fair value gains on strategic investments were about RMB 27.3 million, which were non-cash in nature.

In terms of products and business developments, STAR SHINE HOLDINGS announced on February 13 continued cooperation with internationally renowned IP partners, and a strategic foray into AI solutions business; on August 27, it released its first interim results since listing, with the IP peripheral goods segment benefiting from cooperation with a globally popular streaming drama and other well-known IPs, and the launch of new products with its own design patents.