Sihui Technology Third Consecutive Daily Limit Up: Stock price has risen significantly in the short term, with risks of overheated market sentiment and irrational speculation

(Source: Caixin)

The company’s stock price has experienced a significant short-term increase, which poses risks of market overheating and irrational speculation. It has deviated seriously from the Shanghai Composite Index and the general equipment manufacturing industry index to which the company belongs.

On March 17, Xihua Technology (603248.SH) issued an announcement regarding abnormal stock trading fluctuations. The company’s stock closed with a cumulative deviation of over 20% in the price increase during two consecutive trading days (March 16 and March 17, 2026), indicating abnormal trading activity.

In response to the abnormal fluctuations, the company conducted a self-inspection and verified with its controlling shareholder and actual controller. Currently, the company’s operations are normal, and there have been no significant changes in daily operations or external environment. Additionally, after self-inspection and verification with its controlling shareholder and actual controller, as of the disclosure date of this announcement, the company, its controlling shareholder, and its actual controller have no major undisclosed information that should be disclosed, including but not limited to major asset restructuring, share issuance, acquisitions, debt restructuring, business restructuring, asset stripping, asset injection, share repurchase, equity incentives, bankruptcy reorganization, major business cooperation, or strategic investor introduction. Furthermore, the company has not found any media reports, market rumors, or hot concepts involving the company that require clarification or response.

The company specifically reminds investors to be aware of related risks. On one hand, from March 11 to March 17, the company’s stock price increased by a total of 44.82% over five trading days, with three consecutive days closing at the daily limit. The turnover rates in the last two trading days were 57.87% and 43.90%, respectively. Currently, the turnover rate is high with a significant volume increase, indicating considerable trading risk. The company’s stock price has surged sharply in the short term, which may lead to market overheating and irrational speculation, deviating significantly from the Shanghai Composite Index and the general equipment manufacturing industry index. On the other hand, there is a risk of overvaluation. Data shows that the static P/E ratio for the general equipment manufacturing industry is 48.93, and the price-to-book ratio is 3.77, while the company’s static P/E ratio is 110.58 and the price-to-book ratio is 11.68. Both the latest static P/E ratio and the latest price-to-book ratio are higher than industry averages, indicating higher trading risks.