SCG(SH:600170) Hua Xia Shi Bao·2025-09-20 02:20Core Viewpoint - Shanghai Construction Group's stock experienced a significant rise followed by a sharp decline, reflecting investor sentiment and the importance of fundamental analysis in long-term investments [2][3][9]. Stock Performance - From September 12 to September 18, 2025, Shanghai Construction's stock price rose for five consecutive trading days, achieving a cumulative increase of 61% and reaching a four-year high of 3.88 yuan per share [3]. - On September 19, the stock price fell sharply, hitting the daily limit down to 3.49 yuan, a decrease of 10.05%, with a net outflow of 6.6 billion yuan in the morning session [3][4]. - Despite the drop on September 19, the stock still recorded a 44.21% increase for the month [3]. Company Background - Shanghai Construction Group was established in 1998 and listed on the Shanghai Stock Exchange, undergoing two rounds of asset restructuring in 2010 and 2011 to complete its overall listing [3]. - The company has experienced significant fluctuations in stock price over the years, with historical highs and lows, including a peak of 9.28 yuan in 2015 and a low of 2.06 yuan in 2018 [3]. Financial Performance - The company reported growth in net profit for 2023 and 2024, but faced a decline in revenue and net profit in the first half of 2025, with revenue at 1,050.42 billion yuan, down 28.04% year-on-year, and net profit at 71 million yuan, down 14.07% [9]. - The operating cash flow for the first half of 2025 was negative at -184.8 billion yuan [9]. Market Sentiment - The story of a retired engineer, dubbed "Construction Uncle," who invested heavily in Shanghai Construction, has resonated with many investors, highlighting the emotional connection and urgency among retail investors to recover their investments [5][6]. - The rise in stock price was also linked to speculative trading, with the company issuing risk warnings about high turnover rates and potential market overheating [4]. Business Segments - Shanghai Construction's primary business remains in construction, with 89.15% of total revenue coming from construction, contracting, design, and related services, amounting to 936.44 billion yuan in the first half of 2025 [7]. - The company has a minor involvement in gold mining through its subsidiary, which reported a 47% increase in revenue from gold sales, but this segment contributes less than 0.5% to total revenue [8].