HK Stock Connect Insight | FAMEGLOW (03774.HK) Rises 43.9% Since Stock Connect Inclusion; Controlling Shareholder Sold 56.93% Stake at HKD 0.75 on October 23

On November 5, 2026, the Hong Kong local medical aesthetics and consumer theme traded divergently, and FAMEGLOW (03774.HK) rose. As of 13:37, the stock was quoted at HKD 28.780, up 3.15%, with a turnover of about HKD 2.7418 million and a market capitalisation of about HKD 23.569 billion based on the latest price. It touched a low of HKD 27.740 and a high of HKD 29.500 during the day, with an amplitude of 6.31%.

In terms of recent movements, FAMEGLOW's share price over the past week (October 29 to November 5, including today's intraday price) fell sharply after trading resumed. On November 2, the first day of resumed trading, the stock closed at HKD 28.500, down 26.36% from HKD 38.700 before the suspension.

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 FAMEGLOW (03774.HK) was included, and was thereby added to Stock Connect.

Public information shows that FAMEGLOW listed on GEM of HKEX on October 15, 2018 at a listing price of HKD 0.280; on June 30, 2026, the company transferred its listing from GEM to the Main Board, with the stock code unchanged. The company operates medical aesthetics centres in Hong Kong under the "per Face" brand, covering non-surgical medical aesthetics services (energy-based device treatments and minimally invasive treatments), traditional beauty services and sales of skincare products. As at November 5, 2026, the company had 818,920,000 issued shares; the current price of HKD 28.780 is 37.00% below its 52-week high of HKD 45.680 (October 23), while its 52-week low was HKD 12.900.

At present, after joining Stock Connect, FAMEGLOW's share price has risen 43.9% cumulatively from its September 7 close of HKD 20.000 to date. In terms of market capitalisation, based on the closing price of HKD 16.000 on June 30, 2026, the total market capitalisation was about HKD 13.103 billion; as at the intraday quote on November 5, it had risen to about HKD 23.569 billion.

It is understood that Hang Seng Indexes Company announced the results of its quarterly review as at June 30, 2026 on August 21, and FAMEGLOW was included in the Hang Seng Composite Index, with the constituent changes taking effect on September 7.

The basis for FAMEGLOW'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 16.000 on June 30, 2026, the total market capitalisation was about HKD 13.103 billion, well above the HKD 4 billion market capitalisation threshold for small-cap Stock Connect eligible securities. In addition, the company transferred its listing from GEM to the Main Board on June 30, 2026, and Main Board listing status is a precondition for meeting the board requirement for Stock Connect eligibility — GEM-listed securities fall outside the scope of Stock Connect eligible securities, which explains why the company only became eligible after the transfer. (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 FAMEGLOW with institutional conditions to broaden southbound capital participation and improve liquidity, the company's share price first rose and then fell sharply after inclusion, and trading was briefly suspended in late October when the controlling shareholder disposed of its stake, occurring alongside operating results showing revenue growth of 35.5% in the latest full financial year.

It is worth noting that on October 23, 2026, the offeror Sheng Zhan International Limited entered into a sale and purchase agreement with the vendor Equal Joy Holdings Limited to acquire 466,200,000 shares of the company, representing about 56.93% of the issued share capital, for a cash consideration of HKD 350 million, equivalent to HKD 0.750 per sale share, and the transaction was completed immediately upon signing. The vendor is jointly held by the company's chairman and executive director Ip Chun Kwok and chief executive officer and executive director Fu Tsz Ching, and ceased to hold any interest in the company upon completion. As the offeror and its concert parties hold 56.93%, a mandatory unconditional cash offer is required under Rule 26.1 of the Takeovers Code at HKD 0.750 per offer share, a discount of about 98.06% to the closing price of HKD 38.700 on October 23. The offeror, Sheng Zhan International, is an investment holding company incorporated in the British Virgin Islands, wholly owned by Wen Haiyuan, with Chen Yujie as its sole director; the offeror stated that it intends to maintain the company's listing status after the offer closes and has no intention to terminate the employment of any group employee or to redeploy the group's fixed assets outside the ordinary course of business. Trading in the company's shares was briefly suspended from 1:00 p.m. on October 23 and resumed at 9:00 a.m. on November 2. Based on the intraday price of HKD 28.780 on November 5, the current price is about 38.4 times the offer price of HKD 0.750.

Public information shows that FAMEGLOW's revenue is highly concentrated in non-surgical medical aesthetics services. Based on the revenue composition for the year ended March 31, 2026, energy-based device treatments accounted for 86.86% of revenue, minimally invasive treatments 5.06%, traditional beauty services 4.63% and sales of skincare products 3.45%. The company mainly provides services in Hong Kong and is incorporated in the Cayman Islands.

On the financial side, the company's revenue has grown continuously over the past four financial years: for the years ended March 31, 2023, 2024, 2025 and 2026, revenue was HKD 227 million, HKD 299 million, HKD 435 million and HKD 589.8 million respectively, with the 2026 financial year up 35.5% year on year; profit attributable to shareholders over the same years was HKD 16 million, HKD 40 million, HKD 45 million and HKD 54.641 million, with the 2026 financial year up 19.5% year on year, slower than revenue growth. On profitability, the gross margin for the 2026 financial year was 89.48% and the net margin 9.26%, with the net margin down 1.24 percentage points from 10.50% in the 2025 financial year; profit before tax for the period was HKD 62.007 million, up 12.7% year on year. Based on the intraday market capitalisation of HKD 23.569 billion on November 5 and the profit attributable to shareholders for the 2026 financial year, the company's static price-to-earnings ratio is about 431 times.