Analysis of Popularity Reasons and Market Drivers for Shunhao Co., Ltd. (002565.SZ)

Shunhao Co., Ltd. (002565.SZ) has become a hot stock driven mainly by two core factors:

1. Policy Expectations and Business Relevance
   : Although the search results do not directly mention the company, external hemp policy developments (such as the reintroduction of the Cannabis Safety and Regulation Act by Oregon state senators in the U.S. [0]) have an indirect emotional impact on Shunhao Co., which once laid out industrial hemp business. The market’s expectation of policy relaxation in related sub-fields has warmed up.
2. Stock Price Momentum and Capital Push
   : The company’s stock price has risen by 129.89% in the past month, and it hit the daily limit on December 18 with significantly enlarged trading volume [0], indicating an influx of short-term speculative funds. Momentum effect and follow-up sentiment have become the direct drivers of short-term stock price increases.

From the perspective of the matching degree between valuation and fundamentals, Shunhao Co.'s current PE is over 300 times, far higher than the industry average. The stock price increase relies more on market sentiment rather than fundamental improvement [0]. This indicates that this popularity is more of a short-term market driven by capital, rather than a reflection of the company’s intrinsic value improvement.

: High valuation bubble risk is prominent—PE over 300 times means the stock price has over-reflected market expectations [0]; the uncertainty of policy expectations is high—if relevant policies do not advance as expected by the market, the stock price may callback sharply; the influx of short-term funds may bring violent fluctuations.
: If there is a substantial breakthrough in industrial hemp-related policies, the company’s business layout is expected to benefit; the short-term momentum effect may attract more attention from speculative funds.

Shunhao Co., Ltd. (002565.SZ) has become a hot stock due to the combined effect of policy expectations, stock price momentum, and capital push. Investors need to pay attention to risks such as overvaluation and policy uncertainty, and make cautious decisions based on their own risk tolerance.