Analysis of the Reasons for and Sustainability of Tianyin Electromechanical's (300342) Strong Performance

Tianyin Electromechanical’s (300342) strong performance is core-driven by sector dividends and business support [0]. The company belongs to the 6G concept and commercial aerospace sectors, which have been active recently: China’s space launches this year reached nearly 90 times, a record high; the commercial aerospace market is expected to grow; Satellite ETF (159206) rose by over 2% with its scale hitting an all-time high, and the sector has high attention [0]. Its subsidiary Tianyin Star produces star trackers for satellites, a core component for satellite navigation and positioning, directly benefiting from the sector’s demand growth [0]. From a technical perspective, on December 24, the company’s stock price rose by 23.12% with a trading volume of 152.03 million shares, significantly higher than the recent 10-day average of about 100 million shares; the cumulative gain over the past month reached 70.53%, showing strong short-term momentum [0].

1. Sector-Business Strong Correlation Drive
   : The company’s core product, the star tracker, is directly linked to the demand for commercial aerospace and 6G satellite communications. The high growth expectations of the sector and the precise matching of individual stock business are the fundamental logic behind the stock price’s strength [0].
2. Hidden Concerns of Volume-Price Divergence
   : Although the short-term increase in turnover reflects high investor attention, the current price-earnings ratio (220.26x) and price-to-book ratio (8.34x) are at high levels. Valuation may have already priced in short-term positives, requiring vigilance against corrections after overheating [0].

• Opportunities
  : The commercial aerospace and 6G sectors have broad long-term development space. As a core supplier in the niche segment, the company is expected to continue benefiting from the sector’s growth dividends [0].
• Risks
  : High valuation risks (P/E 220.26x, P/B 8.34x) may compress future upside potential; uncertainties in industry policies and launch plans may affect business stability [0].
• Key Price Levels
  : Resistance level is around 35 yuan (historical highs on December 18 and 22, 2025); support level is around 25 yuan (recent low on December 17) [0].

Tianyin Electromechanical’s short-term strong performance is driven by commercial aerospace and 6G sector dividends and subsidiary business support. The significant increase in trading volume reflects positive sector sentiment. However, risks such as high valuation and reliance on industry policies need to be focused on. Subsequent sustainability is jointly influenced by sector trends, valuation repair rhythm, and industry dynamics [0].