CMC(SH:603122) Bei Jing Shang Bao·2025-11-04 12:44Core Viewpoint - Despite multiple risk warnings, Hefei China (603122) has experienced a significant stock price surge, achieving a six-day consecutive limit-up, indicating a potential bubble in the stock price due to a lack of performance support [1][4]. Group 1: Stock Performance - On November 4, Hefei China opened at a limit-up price of 11.85 CNY per share, with a daily increase of 10.03%, bringing the total market capitalization to 4.717 billion CNY [3]. - From October 28 to November 4, the stock price increased by 77.4% over six consecutive trading days [3]. - The stock was placed on the "Dragon and Tiger List" due to significant price deviations, with notable trading activity from China Galaxy Securities and Dongguan Securities [3]. Group 2: Financial Performance - In the first three quarters of the year, Hefei China reported a revenue of 549 million CNY, a year-on-year decrease of 22.8%, and a net profit attributable to shareholders of approximately -12.39 million CNY, indicating a shift from profit to loss [5]. - The third quarter net profit was -5.05 million CNY, a decline of 225.26% compared to the same period last year [5]. - The company has seen a continuous decline in performance since its peak in 2022, with revenues decreasing from approximately 1.28 billion CNY in 2022 to an estimated 939 million CNY in 2024 [6]. Group 3: Market Valuation - Hefei China has a static price-to-earnings (P/E) ratio of 171.11, significantly higher than the industry average P/E ratio of 28.9, indicating a substantial valuation bubble [4]. - The company has warned that its stock price is severely deviating from its fundamental performance and is subject to rapid declines [4][6].