CMC(SH:603122) Di Yi Cai Jing·2025-11-20 12:08Core 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 yuan per share, despite the company's ongoing financial losses and declining performance [2][3][7]. Stock Performance - HeFu China's stock price experienced a continuous rise starting from around 7 yuan on October 28, achieving 13 trading days of closing at the涨停 price, with significant trading volumes and fluctuations in turnover rates [3][5]. - The stock was subject to monitoring by the Shanghai Stock Exchange due to severe abnormal price fluctuations during the period [3][4]. Financial Performance - The company reported a revenue of 5.49 billion yuan 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 yuan, a drop of 146.65% [7]. - The revenue is projected to continue declining, with estimates showing a decrease from 12.80 billion yuan in 2022 to 9.39 billion yuan in 2024, alongside a significant drop in net profit [7][8]. Market Behavior - The trading activity indicates a speculative environment, with retail investors and small investors dominating the trading volume, while institutional investors accounted for only about 10% of the total trading [5][6]. - The company has noted a "hot market sentiment" and irrational speculation, which has led to a significant divergence between the stock price and the company's fundamental performance [6][7]. Valuation Concerns - As of November 20, HeFu China's static price-to-earnings (P/E) ratio was reported at 378.03, significantly higher than the industry average of 29.37, indicating a potential bubble in the stock price [4][6].