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wrote a column · Mar 13 19:15

[IPO Tracker] Stock price has fallen by 40%! Potai Vehicle Connectivity (02889.HK) continues to slide, is the decline due to lifting of share lock-up?

On March 13, $PATEO (02889.HK)$ The stock plunged again, closing with a drop of 7.24% at HKD 169.1 per share, and its market value shrank to HKD 25.364 billion. Since the end of February, the company's share price has remained weak, and within less than a month, the cumulative decline was about 40%, showing obvious signs of capital outflows. In fact, not long ago, Potai Vehicle Connectivity had just obtained the 'ticket' to be included in the Hong Kong Stock Connect program. On March 6, both the Shanghai and Shenzhen Stock Exchanges simultaneously adjusted the list of eligible Hong Kong stocks, with Potai Vehicle Connectivity successfully making the cut, effective from March 9. Following the announcement, the stock briefly experienced a two-day rally, only to dive back into a downward channel. From a capital flow perspective, the core reason behind this pullback in Potai Vehicle Connectivity might be the concentrated exit of short-term profit-taking positions. Potai Vehicle Connectivity listed on the Hong Kong Stock Exchange on September 30, 2025. In the months leading up to its inclusion in the Hong Kong Stock Connect, the stock price had already accumulated some gains. Between November 19, 2025, and February 20, 2026, the share price surged nearly 70%, providing ample room for short-term profits. Some analysts pointed out that the inclusion of a stock in the Hong Kong Stock Connect essentially serves as an 'official endorsement' of the stock’s value. However, in the Hong Kong market, this positive factor often turns into a typical 'pre-emptive exhaustion, post-event cash-out' scenario: before inclusion, capital flows in early, continuously pushing up the stock price; after inclusion, once the 'value recognition' expectation materializes, previously hidden profit-takers quickly cash out and leave...
On March 13, $PATEO (02889.HK)$ The stock plunged again, closing with a drop of 7.24% at HKD 169.1 per share, and its market value shrank to HKD 25.364 billion. Since the end of February, the company's share price has remained weak, and within less than a month, the cumulative decline was about 40%, showing obvious signs of capital outflows.
On March 13, $PATEO (02889.HK)$ The stock plunged again, closing with a drop of 7.24% at HKD 169.1 per share, and its market value shrank to HKD 25.364 billion. Since the end of February, the company's share price has remained weak, and within less than a month, the cumulative decline was about 40%, showing obvious signs of capital outflows. In fact, not long ago, Potai Vehicle Connectivity had just obtained the 'ticket' to be included in the Hong Kong Stock Connect program. On March 6, both the Shanghai and Shenzhen Stock Exchanges simultaneously adjusted the list of eligible Hong Kong stocks, with Potai Vehicle Connectivity successfully making the cut, effective from March 9. Following the announcement, the stock briefly experienced a two-day rally, only to dive back into a downward channel. From a capital flow perspective, the core reason behind this pullback in Potai Vehicle Connectivity might be the concentrated exit of short-term profit-taking positions. Potai Vehicle Connectivity listed on the Hong Kong Stock Exchange on September 30, 2025. In the months leading up to its inclusion in the Hong Kong Stock Connect, the stock price had already accumulated some gains. Between November 19, 2025, and February 20, 2026, the share price surged nearly 70%, providing ample room for short-term profits. Some analysts pointed out that the inclusion of a stock in the Hong Kong Stock Connect essentially serves as an 'official endorsement' of the stock’s value. However, in the Hong Kong market, this positive factor often turns into a typical 'pre-emptive exhaustion, post-event cash-out' scenario: before inclusion, capital flows in early, continuously pushing up the stock price; after inclusion, once the 'value recognition' expectation materializes, previously hidden profit-takers quickly cash out and leave...
In fact, not long ago, Potai Vehicle Connectivity had just obtained the 'ticket' to be included in the Hong Kong Stock Connect program. On March 6, both the Shanghai and Shenzhen Stock Exchanges simultaneously adjusted the list of eligible Hong Kong stocks, with Potai Vehicle Connectivity successfully making the cut, effective from March 9. Following the announcement, the stock briefly experienced a two-day rally, only to dive back into a downward channel.
From a capital flow perspective, the core reason behind this pullback in Potai Vehicle Connectivity might be the concentrated exit of short-term profit-taking positions.
Pateo Connected Vehicle went public on the Hong Kong Stock Exchange on September 30, 2025. In the months leading up to its inclusion in the Shanghai-Hong Kong Stock Connect, its share price had already accumulated significant gains. Between November 19, 2025, and February 20, 2026, the stock surged nearly 70%, providing short-term capital with ample profit-taking opportunities.
Some analysts point out that the inclusion of a stock in the Shanghai-Hong Kong Stock Connect essentially serves as an 'official endorsement' of the individual stock’s value. However, in the Hong Kong market, this positive catalyst often turns into a typical scenario of 'pre-emptive overreaction and post-inclusion profit-taking': before inclusion, funds sensing opportunity enter early and continuously drive up the stock price; after inclusion, the 'value recognition' expectation is realized, prompting previously accumulated profits to be cashed out en masse, which then triggers a pullback in the stock price—a phenomenon not uncommon in the Hong Kong market.
It is worth noting that Pateo Connected Vehicle's declining share price coincides with the critical juncture of the company approaching the six-month anniversary of its IPO and the countdown to the end of the cornerstone investors’ lock-up period.。
On March 13, $PATEO (02889.HK)$ The stock plunged again, closing with a drop of 7.24% at HKD 169.1 per share, and its market value shrank to HKD 25.364 billion. Since the end of February, the company's share price has remained weak, and within less than a month, the cumulative decline was about 40%, showing obvious signs of capital outflows. In fact, not long ago, Potai Vehicle Connectivity had just obtained the 'ticket' to be included in the Hong Kong Stock Connect program. On March 6, both the Shanghai and Shenzhen Stock Exchanges simultaneously adjusted the list of eligible Hong Kong stocks, with Potai Vehicle Connectivity successfully making the cut, effective from March 9. Following the announcement, the stock briefly experienced a two-day rally, only to dive back into a downward channel. From a capital flow perspective, the core reason behind this pullback in Potai Vehicle Connectivity might be the concentrated exit of short-term profit-taking positions. Potai Vehicle Connectivity listed on the Hong Kong Stock Exchange on September 30, 2025. In the months leading up to its inclusion in the Hong Kong Stock Connect, the stock price had already accumulated some gains. Between November 19, 2025, and February 20, 2026, the share price surged nearly 70%, providing ample room for short-term profits. Some analysts pointed out that the inclusion of a stock in the Hong Kong Stock Connect essentially serves as an 'official endorsement' of the stock’s value. However, in the Hong Kong market, this positive factor often turns into a typical 'pre-emptive exhaustion, post-event cash-out' scenario: before inclusion, capital flows in early, continuously pushing up the stock price; after inclusion, once the 'value recognition' expectation materializes, previously hidden profit-takers quickly cash out and leave...
According to the company’s announcement, under the relevant listing rules and guidelines, the last day of the lock-up period for Pateo Connected Vehicle’s cornerstone investors is March 30, 2026.
Market analysis indicates that as the expiration window approaches, some investors choose to exit early to lock in prior gains or adjust their portfolio structure, exerting certain pressure on the short-term share price.
Nevertheless, despite short-term pressure on the stock price, the industry generally remains optimistic about Pateo Connected Vehicle’s advantageous positioning and growth prospects in the AI-powered smart cockpit sector.
Data shows that Pateo Connected Vehicle is a well-known provider of smart cockpit solutions in China, possessing full-stack self-research and mass-production capabilities in software, hardware, and Internet of Vehicles (IoV) cloud services, continuously expanding its leading edge in the high-end smart cockpit market.
According to data from Gaogong Industry Research, in the domestic Chinese market for mid-to-high-end self-owned brand models priced above 250,000 yuan in 2025, Pateo Connected Vehicle’s cockpit domain control product line holds the top position in the industry with a market share of 25.18%. Its core clients include Li Auto, Changan Avita, and Dongfeng Voyah.
At present, the new energy vehicle market is transitioning towards 'intelligence', and the smart cockpit, as the core carrier of user experience, is entering a phase of explosive growth. According to CIC Consulting, the market size for smart cockpit solutions in China’s passenger vehicles is expected to grow from 129 billion yuan in 2024 to 299.5 billion yuan in 2029, with a compound annual growth rate of 18.4%.
Institutional analysts believe that as a leader in China’s smart cockpit domain control industry, Pateo Connected Vehicle is well-positioned to fully benefit from the industry’s growth dividends.。
Hua Tai Securities previously noted in a research report that, against the backdrop of the intelligent cockpit industry transitioning from 'hardware penetration' to 'system capability competition,' with the average per-vehicle value increasing, Patlink is well-positioned to achieve robust revenue growth and profitability improvement. This is supported by its first-mover advantage in high-end SoC platforms, its unique positioning within the HarmonyOS ecosystem, and breakthroughs in overseas markets.
Dong Wu Securities also expressed optimism about Patlink's steadily increasing share of high-end domain control products, along with continuously improving profitability and growth rates outpacing the industry.
Author: Pingzi
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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