MHUA Plummets 28%: Reverse Split Drama Unfolds as Nasdaq Compliance Clock Ticks

Summary
• Meihua International (MHUA) slumps 27.7% to $0.1671, its lowest since November 8
• 1-for-100 reverse split approved to meet Nasdaq’s $1 bid price rule
• Intraday range of $0.1523–$0.1725 highlights extreme volatility

Meihua International’s stock has imploded on Thursday, trading down 27.7% to $0.1671 as the market digests its impending reverse split. The dramatic move follows the company’s announcement of a 1-for-100 share consolidation to regain Nasdaq compliance, triggering panic among shareholders. With the sector leader Medtronic (MDT) down 0.48%, the medical device space remains under pressure, but MHUA’s collapse is uniquely tied to its capital structure overhaul.

Reverse Split Triggers Investor Exodus
The 1-for-100 reverse split, effective November 24, has triggered a liquidity crisis as shareholders face a 99% reduction in their share count. The move, designed to elevate the stock price to $1 post-split, has instead accelerated selling pressure as investors anticipate further dilution and governance risks. The company’s share count will shrink from 56 million to 560,000, while the 10 billion authorized shares create a massive overhang. This structural shift, coupled with weak fundamentals (dynamic PE of 1.49), has eroded confidence, driving the stock to its 52-week low of $0.1523.

Technical Deterioration: Short-Term Bear Playbook
• MACD: -0.0257 (bearish divergence), Signal Line: -0.0317, Histogram: 0.0060 (negative momentum)
• RSI: 46.78 (oversold but bearish), Bollinger Bands: $0.2051–$0.2644 (price near lower band)
• 200D MA: $0.3611 (price 75% below), 30D MA: $0.2741 (key resistance at $0.2235)

Meihua’s technicals paint a dire picture. The stock is entrenched in a long-term downtrend, with RSI at oversold levels but no sign of a rebound. The 200-day average ($0.3611) looms as a distant target, while the 30-day MA ($0.2741) acts as a critical resistance. Short-term traders should focus on the $0.1523 (52W low) as a potential floor and $0.2235 (30D support) as a pivot. The absence of options liquidity forces a pure technical play: short-term bears may consider fading rallies above $0.1725 with tight stops.

Backtest Meihua International Stock Performance
Below is an interactive back-test report that evaluates a “–28 % intraday-plunge rebound” strategy on Meihua International (MHUA) from 2022-01-01 to 2025-11-20. I set sensible default risk-control rules (15 % stop-loss, 30 % take-profit, 10-day max holding) because no exit logic was specified. Explore the charts and tables for full performance details.Key assumptions added • Exit rules: 30 % take-profit, 15 % stop-loss, or 10-day maximum holding – common parameters for short-term swing strategies. • Price basis: closing prices (default). Feel free to review the interactive module above for detailed equity curves, P&L distribution, drawdowns, and trade logs. If you’d like to adjust the risk controls or test different exit conditions, just let me know!

MHUA at Crossroads: Reverse Split Compliance or Collapse?
Meihua’s survival hinges on its November 24 reverse split, but the structural risks—massive authorized shares and governance concerns—remain unresolved. The stock’s technical breakdown suggests further pain, with $0.1523 as a critical support. Investors should monitor the 200-day MA ($0.3611) as a long-term benchmark and the sector leader Medtronic (MDT, -0.48%) for broader medical device cues. For now, the path of least resistance is lower—watch for a breakdown below $0.1523 or a failed rebound above $0.2235.