CMC(SH:603122) Mei Ri Jing Ji Xin Wen·2025-11-14 14:49Core Viewpoint - The stock of HeFu China will be suspended for trading starting November 17, 2025, due to significant price fluctuations and a recent surge in stock price, which has raised concerns about market overheating and irrational speculation [1][2]. Group 1: Stock Performance and Trading Activity - HeFu China's stock has experienced a remarkable increase of 256.29% over the period from October 28 to November 14, with 12 out of 14 trading days closing at the daily limit [2][4]. - The stock's trading volume surged, with a turnover rate reaching 31.5% on November 6, indicating aggressive trading behavior, particularly from retail investors known as the "Lhasa team" [5][6]. - Notably, there has been no institutional presence among the top five trading amounts, suggesting that the trading activity is primarily driven by retail investors [4][6]. Group 2: Financial Performance and Valuation Concerns - HeFu China reported a net loss of 5.048 million yuan for Q3 2025, a decline of 225.26% compared to the same period last year, highlighting a significant disconnect between stock price and company performance [4]. - The company's current price-to-earnings (P/E) ratio stands at 343.67, which is substantially higher than the industry average P/E ratio of 30.94, indicating potential overvaluation [4]. - The stock's price is seen as significantly deviating from the reasonable valuation of comparable companies in the wholesale industry, raising concerns about a potential bubble [4].