Lingbao Gold Group Co Ltd has experienced a decent bullish recovery in recent days, creating a potential investment opportunity. The buying pressure is supported by a solid fundamental recovery from the exchange listing.
Lingbao Gold (3330.HK) Business Model
The main business activities of Lingbao Gold Group Co Ltd, a Chinese firm, are the mining, manufacturing, smelting, and selling of gold and other precious commodities. The business is divided into four sections. Gold mining and the processing of ore from minerals in the PRC are the main activities of the Mining-People's Republic of China (PRC) segment.
The primary activities of the Mining-Kyrgyzstan (KR) division are the extraction of gold and the processing of mineral ores in Kyrgyzstan. The primary activities of the Smelting section include refineries and the smelting of gold along with other metals. The main activity of the retailing sector is the retailing of gold and other jewellery. The company primarily operates in both domestic and international markets.
Lingbao Gold HK Listing
According to a filing made on Friday by the Hong Kong Stock Exchange, Lingbao Gold Group received clearance from the Listing Committee of the Stock Exchange to list 385,578,033 H shares, which represents the entire number of domestic shares of the firm that will be transformed under the process of conversion and listing.
As part of the listing and conversion, 14 collaborating shareholders will control 385,578,033 domestic shares, which accounts for 31.01% of the business's issued shares.
When the listing and conversion are complete, the company's H shares will rise from 676.5 million, or 54.40%, to 1.06 billion, or 85.41%, while its domestic shares will fall from 567.0 million, or 45.60%, to 181.4 million, or 14.59%.
Lingbao Gold Stock (3330.HK) Technical Analysis
In the daily chart of Lingbao Gold stock, the recent price shows a potential bullish rally-base-rally formation, which signals a stable market trend. Primarily, the main anticipating for this stock is to look for long trades from a valid bottom.
In the major structure, the bullish momentum is solid, as the dynamic 200-day SMA and 50-day EMA are below the current price. However, the price is still trading within a descending channel, from which a breakout could signal a trend trading opportunity.
Based on this outlook, investors should closely monitor how the price trades above the dynamic 50-day EMA line. The primary anticipation is to wait for a channel breakout with a daily close above the 3.80 high before anticipating the 4.88 level.
However, a range extension with a selling pressure towards the 2.80 to 2.70 zone could offer a long opportunity from a discounted zone. However, a bearish impulsive pressure below the 2.40 low could be a challenging factor to bulls, which might extend the loss towards the 1.40 level.
