When small-cap stocks rise or fall violently for several consecutive days, this may attract market attention.

Take ZheLi Holding (02209), which has a clear upward trend recently, for example. Since its stock price soared by 27% on ****, the stock price has opened an "upward channel" recently, recording a 32% increase on June 7th, a 54% gain on June 11th, and a 21% increase recorded on June 13th, with a cumulative increase of more than 2.2 times in 10 trading days. As for the product structure, the operating income of 10-30 billion yuan products is respectively 401/1288/60 million yuan.

In addition to the sudden strong rise in the stock price, the trading volume of ZheLi Holding has also suddenly expanded. Before ****, trading volume of the company was relatively bleak, with daily turnover mostly between several hundred thousand Hong Kong dollars. However, after ****, the trading volume of ZheLi Holding began to expand, with daily turnover between one million Hong Kong dollars and ten million Hong Kong dollars. For example, on June 11th, the trading volume of the stock was 14.267 million shares, and the turnover was 41.0791 million Hong Kong dollars.

As for the above-mentioned upward trend, ZheLi Holding is also a bit puzzled - the board of directors confirmed that it is not aware of any reason that would cause the price or trading volume of its shares to rise, nor is it aware of any information that must be disclosed to avoid false markets, nor is there any insider information that needs to be disclosed.

In fact, according to the observation of the Wisdom Finance APP, this trend is difficult not to associate with the performance of the "institutional stock capital-raising". Generally speaking, as a "small-cap stock", ZheLi Holding is easy to be targeted by institutions and become a "institutional stock" deliberately controlled by institutions. Specifically, institutions achieve the purpose of raising funds by increasing or decreasing their chips, continuously washing the plate and shaking the warehouse, and then raising the stock price at the right time to attract retail investors to chase the high and achieve the purpose of selling. And make profits.

Such stocks usually have the characteristics of violent ups and downs in stock prices, fluctuating trading volume, abnormal trading behavior, large fluctuations in operating performance, and preference for small-cap stocks. Nowadays, ZheLi Holding's trading volume has suddenly expanded.

As expected, there has been a very obvious "harvesting behavior" on the plate of ZheLi Holding.

On June 17th, ZheLi Holding rose by nearly 3 points in early trading, and then the stock price continued to rise and rose by more than 23% at one point. Who would have thought that the situation turned down after noon and turned from red to green, and even fell by more than 17% at the end of the day. By the close, the stock price fell by 5.13% to HKD 3.7, with a range of fluctuation of 44.36%, just like riding a "roller coaster". The next day, its stock price seemed to ride on it again. At one point in early trading, it rose more than 10%, and then it turned from rise to fall at the end of the day, closing down 8.11% at HKD 3.40.

Of course, from the perspective of news and fundamentals, the recent roller coaster of ZheLi Holding's stock price is also like a "speculative game" by institutions.

From the perspective of news, there is no exact news stimulus for the sudden rise of ZheLi Holding's stock price this time. According to the news disclosed earlier, on May 17th, the smart logistics news released by the company showed that ZheLi Holding plans to renew the property in Qingyi Fengshu Qingyi Logistics Center for five years and add logistics hubs and distribution centers to the property. Due to the long disclosure of this news, it seems that there is no direct boost to the current trend of the company.

From the fundamental point of view, ZheLi Holding's fundamentals are not good, with large fluctuations in performance in recent years and negative growth in revenue.

According to the Wisdom Finance APP, ZheLi Holding is mainly engaged in e-commerce business, with two core platforms under its name: the YesStyle platform for business-to-consumer (B2C) and the AsianBeautyWholesale platform for business-to-business (B2B), which mainly sell fashion and beauty products. In recent years, with the impact of social e-commerce such as Douyin and Xiaohongshu, traditional e-commerce platforms like ZheLi Holding are not doing well. On the one hand, it intensifies competition, on the other hand, the characteristic of low profit margin itself makes the company earn less and less money.

According to relevant financial data disclosed, from 2021 to 2023, ZheLi Holding's revenue growth rate will be -6.52%, -20.63%, and 56.57%, and the net profit growth rate attributable to the parent company will be -118.40%, -28.43%, and 211.66%. From the above performance, the overall performance of the company is unstable in the past three years, and only in 2023 it has slightly reversed its decline and showed a positive growth trend, achieving revenue of 201 million yuan and net profit of 8 million yuan.

According to the understanding, ZheLi Holding turned losses into gains in 2023, mainly due to the overall gross profit margin of 31.1%, mainly contributed by YesStyle platform's gross profit margin of 33%, selling expenses fell by 2.9 percentage points, customer acquisition costs were between 10-12 USD in the past three years, with little difference, and management expenses ratio dropped significantly by 9.2 percentage points. However, the overall profitability of the company is not high, and the net profit margin in 2023 is only 3.76%, the highest in history is 6.49% in 2020.

According to the Wisdom Finance APP, this trend is difficult not to associate with the performance of the "institutional stock capital-raising". Generally speaking, as a "small-cap stock", ZheLi Holding is easy to be targeted by institutions and become a "institutional stock" deliberately controlled by institutions. Specifically, institutions achieve the purpose of raising funds by increasing or decreasing their chips, continuously washing the plate and shaking the warehouse, and then raising the stock price at the right time to attract retail investors to chase the high and achieve the purpose of selling. And make profits.

Looking at the income structure, the company's core income is from the YesStyle platform. In 2023, the platform sold fashion and beauty products for a total of 157 million US dollars, a year-on-year increase of 42.85%, accounting for 78.8% of revenue. The income from the AsianBeautyWholesale platform accounted for 19.3%, and the total contribution was 98.1%. The company started a marketing strategy focused on beauty products on the YesStyle platform in 2023, which performed well in overseas markets and ranked 10th and 6th in the United States in terms of website traffic for beauty products. At the same time, the number of orders sold on European Union and Canadian platforms doubled.

In addition, Jeil Holdings actively increased the number of collaborations with K-Beauty brands to increase the platform's options. As of 2023, the total number of collaborations reached 448, an increase of 18 compared to 2022. The number of platform customers also continues to increase, reaching 1.445 million, with the average order amount increasing to 80.5 US dollars.

Therefore, it is through the above actions that Jeil Holdings' performance improved in 2023. However, in the long run, as a traditional e-commerce platform, under the multiple disadvantages of fierce competition and low profit margins, there seems to be little room for improvement for Jeil Holdings.

Overall, the roller-coaster trend of Jeil Holdings' stock price is probably just a speculative behavior of capital. For Jeil Holdings, which has poor fundamentals, cautious observation may be the best choice.