Analysis of Reasons for Rising Popularity and Investment Value of Aerospace Power (600343.SH)

1. Heat Driving Factors
   
   Aerospace Power (600343.SH) recently made it to the hot list, mainly affected by two factors: first, the company’s name “Aerospace Power” easily makes investors associate it with the aerospace industry; second, the recent frequent activities in China’s aerospace industry, such as the first flight of the Long March 12A rocket and the launch of the Fengyun-4C meteorological satellite, have triggered market enthusiasm for speculation on aerospace concept stocks [0]. Although the company has repeatedly clarified that its main business is pumps and pump systems, fluid power transmission systems, etc., and only processes rocket engine components on a small scale (accounting for less than 2% of revenue), market speculation still drives its popularity up.

2. Stock Price Fluctuation vs Fundamental Contradiction
   
   The company’s stock price has fluctuated greatly recently, with a “floor-to-ceiling” trend (from limit down to limit up) on December 8, 2025, and closed at 38.62 yuan on December 19, with an increase of 5.81% [0]. However, the company’s financial performance deviates from the stock price trend: in the third quarter of 2025, it had a net loss of 109 million yuan, ROE of -19.39%, asset-liability ratio of 52.46%, and poor profit quality [0].

1. Concept Speculation Risk
   
   The rise in Aerospace Power’s popularity is essentially due to the “name effect” combined with industry concept speculation, rather than the improvement of the company’s fundamentals or business breakthroughs. Such stock price rises relying on concepts often lack sustainability; once the market speculation sentiment cools down, the stock price may fall sharply.

2. Information Disclosure and Market Perception Bias
   
   The company has repeatedly clarified its business scope, but investors still classify it as an aerospace concept stock, reflecting a perception bias of the market towards the company’s business. This bias may lead to a serious disconnect between the stock price and the company’s actual value.

1. Main Risks
   • Concept speculation cooling risk: After the short-term effect of aerospace industry events fades, the stock’s attention may drop rapidly [0].
   • Fundamental risk: The company’s profit situation is poor, and the long-term debt repayment pressure is large. If the operating situation continues to deteriorate, the stock price may fall further [0].
   • Regulatory risk: If the company is involved in concept speculation or information disclosure violations, it may face regulatory penalties.

2. Potential Opportunities
   • Business transformation opportunity: If the company can substantially expand aerospace-related businesses and increase the business proportion, it may improve its profit situation.
   • Industry development dividend: China’s aerospace industry has a good long-term development trend; if the company can seize industry opportunities, it may achieve business breakthroughs.

Aerospace Power (600343.SH) recent popularity rise mainly stems from aerospace concept speculation, with actual aerospace business accounting for an extremely low proportion and weak financial performance. The current stock price rise lacks fundamental support, so investors need to carefully assess risks. In the future, attention should be paid to the progress of the company’s business transformation and changes in industry policies to avoid blind follow-up speculation.