CMC(SH:603122) Nan Fang Du Shi Bao·2025-11-12 05:55Core Viewpoint - The stock of HeFu China (603122.SZ) has experienced a significant surge, achieving 11 limit-up days within 12 trading days, with a total increase of 173.35% from October 27 to November 12, reaching a closing price of 20.09 yuan per share and a market capitalization nearing 8 billion yuan [1][3]. Group 1: Stock Performance - The surge began on October 28, following a period of underperformance where the stock had declined by 2.9% from January 1 to October 27, significantly lagging behind the Shanghai Composite Index's 19% increase during the same period [3]. - The stock's trading volume increased dramatically, with a peak turnover of 2.62 billion yuan on the day the surge began, indicating strong market interest [3]. - Various trading patterns were observed, including volume limit-ups and high turnover rates, with a notable turnover rate of 31.5% on November 6, highlighting the "hot potato" effect among investors [4]. Group 2: Market Dynamics - The primary driver of this stock surge is attributed to speculative trading by retail investors, with notable participation from well-known trading desks, leading to a cumulative transaction volume exceeding 400 million yuan [4]. - HeFu China's unique position as the only dual-listed medical company across the Taiwan Strait has attracted investor attention, benefiting from anticipated policy changes regarding cross-strait medical cooperation [4]. Group 3: Financial Performance - Despite the stock's rapid rise, the company's financial performance has deteriorated, with a reported revenue of 549 million yuan for the first three quarters, a year-on-year decline of 22.8%, and a net loss of 12.39 million yuan, a 146.65% decrease compared to the previous year [5]. - The company attributes its declining performance to macroeconomic changes and price reductions in centralized procurement policies within the medical industry, which have adversely affected sales and profit margins [5]. Group 4: Risk and Investor Sentiment - The company has issued multiple risk warnings regarding its stock price volatility, indicating that the current price levels are significantly detached from its fundamental performance, suggesting a potential for rapid declines [5][8]. - Market analysts express skepticism about the sustainability of the stock's current valuation, emphasizing that without improvements in financial performance or technological advancements, a correction in stock price is likely as market sentiment cools [9].