1038.HK - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 85/100, minimal insolvency risk). The high overall score (6/7) is driven primarily by extreme stock price swings (±21.6% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

6/7 High

6 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves noticeably less than the broader market (0.7x).

Beta (Market Relation)

0.69x

Defensive

Volatility (5Y p.a.)

21.6% p.a.

5-Year Horizon

Max Drawdown (5Y)

-36.2%

5-Year Horizon

Sharpe Ratio

0.30

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+29.7%
3 Years	21.8%	-20.4%	0.87	+21.4%
5 Years	21.6%	-36.2%	0.3	+8.8%
10 Years	21.1%	-52.1%	-0.1	+0.5%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Exemplary balance sheet strength: Very solid ratio of equity to debt.

🔴 Low analyst coverage – higher uncertainty in growth estimates & projections

Historical Stress Test: Maximum peak-to-trough drawdown of -52.1% in the extended horizon.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

4 ISS Score: 4 / 10

Audit Risk

3 ISS Score: 3 / 10

Board Risk

2 ISS Score: 2 / 10

Short Ratio