CMC(SH:603122) Di Yi Cai Jing·2025-11-20 12:04Core Viewpoint - The stock price of HeFu China (603122.SH) has surged dramatically, increasing by 291.92% from October 28 to November 20, reaching a historical high of 26.18 CNY per share, despite the company's ongoing financial losses and declining performance [1][2][6]. Group 1: Stock Performance - HeFu China's stock price experienced a continuous rise, with 12 out of 14 trading days resulting in price limits before the suspension [1]. - The stock price rose from approximately 7 CNY on October 28 to 26.18 CNY by November 20, with 13 trading days closing at the price limit [2]. - The trading volume showed significant fluctuations, with a turnover rate exceeding 20% on several days during the price surge [3][4]. Group 2: Financial Performance - HeFu China reported a revenue of 5.49 billion CNY for the first three quarters of the year, a year-on-year decline of 22.80%, and a net loss of approximately 12.39 million CNY, a drop of 146.65% [6][7]. - The company has faced declining revenues for over two years, with projected revenues decreasing from 12.80 billion CNY in 2022 to 9.39 billion CNY in 2024 [6]. - The decline in performance is attributed to changes in the macroeconomic environment and price reductions in the medical industry, leading to decreased sales and profit levels [6][7]. Group 3: Market Behavior - The company has indicated that the recent stock price surge may be linked to irrational market behavior, with retail investors significantly driving the trading activity [5][6]. - HeFu China has issued multiple risk warnings, stating that its current price-to-earnings ratio of 378.03 is significantly higher than the industry average of 29.37, indicating a potential bubble [3][6]. - The company has noted that the stock's price movement is disconnected from its fundamental performance, raising concerns about the sustainability of the current price levels [1][6].