HK Stock Connect Insight | KEYTOP PARKING (02272.HK) Falls About 30% Since Stock Connect Inclusion; Applied for Full H-Share Circulation on September 2

On October 23, 2026, KEYTOP PARKING (02272.HK) opened lower and swung sharply, and was quoted at HKD 57.85 as of 13:59, up 5.18%, with a turnover of about HKD 18.03 million and a market capitalisation of about HKD 5.850 billion based on the latest price. The stock touched a low of HKD 50.50 and a high of HKD 60.70 during the day, with an amplitude of 18.55%.

According to the data, KEYTOP PARKING's share price over the past week (October 16 to October 23) fell first and then surged. The stock touched an intraday low of HKD 49.28 on October 21, a record low since listing; it rose 10.00% on October 22 and extended the gains on October 23, touching an intraday high of HKD 60.70.

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 KEYTOP PARKING (02272.HK) was included, and was thereby added to Stock Connect.

Public information shows that Xiamen Keytop Communication Technology Co., Ltd. listed on the Main Board of HKEX on June 26, 2026 at an offer price of HKD 39.55, offering 10.1123 million H shares globally (10% for the Hong Kong public offering and 90% for the international offering, with a 15% over-allotment option), raising net proceeds of about HKD 337.8 million; no cornerstone investors were introduced, the Hong Kong public offering was 2,115.21 times subscribed with a first-lot success rate of 2.00%, and the international offering was about 5.56 times subscribed. The company is a smart parking space operator, with businesses covering digital intelligent parking systems, digital intelligent parking management services and parking lot operations.

In terms of its early trading performance, KEYTOP PARKING opened at HKD 110.10 on its debut, up 178.4% from the offer price, and closed at HKD 120.20, up 203.92% from the offer price, with a turnover of about HKD 231 million that day and a market capitalisation of HKD 12.15 billion. The share price reached a post-listing high of HKD 127.50, and stood at HKD 57.85 intraday on October 23, up 46.3% cumulatively from the offer price and 54.6% below its post-listing high.

The basis for KEYTOP PARKING's 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 remained at a high level around the review period: based on the closing price of HKD 115.20 on June 30, 2026, the total market capitalisation exceeded HKD 11 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 KEYTOP PARKING, as an "AI parking service provider", 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 KEYTOP PARKING with institutional conditions to broaden southbound capital participation and improve liquidity, the company's share price has fallen 30.2% cumulatively from its September 7 close of HKD 82.85 to date, and hit a record low since listing on October 21, occurring alongside progress in the implementation of its AI business.

The announcement disclosed that on September 2, 2026, KEYTOP PARKING announced that it had submitted an application to the CSRC to implement full circulation of H shares, converting all of the company's issued unlisted shares into H shares of RMB 1.0 each to be listed on the Main Board of the Stock Exchange, and would apply for the listing and trading of such H shares on the Main Board after obtaining the relevant approvals; under the company's articles of association, no further shareholders' meeting is required to approve the conversion and listing. The announcement stated that, as at the announcement date, the implementation plan for the conversion and listing had not been finalised, and that completion is subject to the filing and/or approval procedures of the CSRC, the Stock Exchange and other relevant regulatory authorities.

On the operating side, the company's revenue for 2023 to 2025 was RMB 738 million, RMB 800 million and RMB 831 million respectively, profit for the period was RMB 92 million, RMB 90 million and RMB 97 million respectively, and adjusted net profit was RMB 89.413 million, RMB 91.687 million and RMB 122 million respectively. In 2025, the gross margin was 46.38% and the number of parking lots served increased to 30,644; by 2024 revenue, the company ranked second in China's smart parking space operation industry with a market share of 3.3% (China Insights Consultancy).

In the first half of 2026, the company's revenue was RMB 333.9 million, down 11.85% year on year, mainly due to delays in the implementation of digital intelligent parking system projects and a decline in new contract value; gross profit was RMB 151.9 million, down 10.6%, with the gross margin rising from 44.9% to 45.5%; profit for the period was RMB 24.42 million, down 5.7%, and profit attributable to owners of the company was RMB 25.178 million, down 11.91%; adjusted net profit was RMB 28.67 million, down 40.3%; basic earnings per share were RMB 0.28, against RMB 0.31 a year earlier; the board did not declare an interim dividend. Parking lot operation revenue was RMB 90.80 million, broadly flat year on year, with the gross margin rising from 37.7% to 45.2%; the number of contracted and idle-time operated parking lots was 493, up 131.0% year on year.

In terms of products and business developments, the company has developed the KeytopAgent AI agent foundation platform and deployed an AI agent matrix covering AI kiosks, AI parking lot managers, AI cloud customer service and AI finance, of which AI kiosks have been applied in 100 parking lot projects and are targeted for full rollout in the second half of 2026; the online parking space rental platform was launched in March 2025, and in the first half of 2026 the average monthly transaction value of monthly-parking spaces sold on consignment was RMB 112.4 million, up 11.8%, with 299,000 monthly active users, up 17.3%, while the average monthly transaction value of self-operated parking spaces was RMB 733,000, up about 652.6%; on September 17, the company signed a framework cooperation agreement with Huawei Cloud Computing Technologies Co., Ltd. in Shanghai to deepen cooperation in cloud infrastructure, smart parking solutions and overseas business.