Hong Kong Aerospace Technology Group Limited announced its strategic cooperation with the Company and Shandong Institute of Industrial Technology for the construction and operation of the first high-resolution agricultural satellite constellation (”Golden Bauhinia — Qilu Satellite Constellation”) on 4 April. It is known that the first phase of the project comprising 9 satellites and the first experiment satellite is expected to be launched in July 2022, and the remaining eight operational satellites with 8-band multi-spectral observation capability will be launched in December 2022.
After the news came out, a huge amount of smart money poured into HKATG, its stock soared for 4 consecutive days between 4 April and 8 April. HKATG recorded a four-day gaining streak from its latest low of HK$12.2, in addition to crossing above 10-day and 20-day exponential moving average (EMA), the stock, a new high in three months was made during intraday trading on 8 April. HKATG surged by more than 100% in a few days, and the trading volume moved against the market which up to nearly 800,000 shares, with a capital of HKD 16.83 million involved and an amazing momentum.
According to the Flow of Funds, several foreign and local banks have been increasing their holdings in the past few days, showing confidence in HKATG’s prospects. Previously, HKATG announced its collaboration with the College of Engineering of the City University of Hong Kong (”CityU”), the parties have entered into a letter of intent (the ”LOI”) concerning the strategic cooperation in the research and development of advanced satellite technology and related applications in Hong Kong, covering communication systems, antenna technology, advanced materials, data processing, and energy management. With the dominant position in the local commercial aerospace market, HKATG is well-positioned for endless business opportunities.
Annual Results Not Fully Reflected Upcoming Profits
HKATG announced the consolidated annual results for the year ended 31 December 2021, though the gross profit recorded a year-over-year decline of approximately 25.2%, smart investors seem to be aware that last year’s results did not reflect several strategic agreements signed by the company since the beginning of 2022, so they bought immediately while the stock price pulled back.