Merit Interactive Co. Hits Day Low of CNY 41.20 Amid Price Pressure

Merit Interactive Co. experienced significant volatility on February 24, 2026, with the stock hitting an intraday low of CNY 41.20, reflecting a notable decline of 11.8% for the day. This performance starkly contrasts with the China Shanghai Composite, which saw a modest decrease of 1.26% during the same period. Over the past week, Merit Interactive has declined by 3.21%, while its monthly performance shows a drop of 4.56%. Year-to-date, the stock has managed a gain of 27.71%, but this is overshadowed by a substantial year-over-year decline of 24.89%. The company’s long-term growth metrics are concerning, with net sales decreasing at an annual rate of 2.61% and operating profit plummeting by 212.40% over the last five years. Merit Interactive's financial health is further illustrated by a low Return on Capital Employed (ROCE) of 2.49%, indicating challenges in profitability. The company has reported negative results for the last two consecutive quarters, with a net profit of CNY -80.47 million. As a large-cap player in the software products industry, Merit Interactive's current market cap stands at CNY 15,583 million, but its financial indicators suggest a need for strategic reassessment.