CMC(SH:603122) Zheng Quan Ri Bao Wang·2025-11-12 05:06Core Viewpoint - Despite ongoing losses, the stock of HeFu China (603122.SH) has experienced a dramatic surge, rising 200.75% from 6.65 CNY per share on October 28 to 20.09 CNY on November 12, with market capitalization increasing from under 3 billion CNY to 8 billion CNY [1][2]. Company Performance - HeFu China reported a revenue of 549 million CNY for the first three quarters of 2025, a decrease of 22.80% year-on-year, and a net profit attributable to shareholders of -12.39 million CNY, down 146.65% year-on-year [4][5]. - The company has issued multiple risk warnings regarding its stock price, indicating that the stock has significantly deviated from its fundamentals and is subject to rapid declines [3][4]. Market Activity - The stock has been on a "limit-up" trend for most trading days since October 28, with only one day not closing at the limit price [3]. - HeFu China's static price-to-earnings ratio reached 263.67, compared to the industry average of 30.52, indicating a significant overvaluation [7]. Investor Sentiment - The stock's surge is attributed to its small float, low price, and alignment with current market trends, making it attractive for speculative trading [8]. - Analysts warn that such speculative trading often leads to rapid price increases followed by steep declines once traders realize profits, posing risks for retail investors [8].