Analysis of the Drivers and Sustainability of the Strong Performance of Junda Co., Ltd. (002865)

Junda Co., Ltd. (002865) recently entered the strong stock pool, mainly affected by both industry trends and short-term momentum.

1. Industry Level
   : China’s new energy vehicle market has grown strongly, with domestic brands accounting for nearly 90% of the market share and 68% of global production [1]. As an enterprise in the automobile manufacturing sector, Junda Co., Ltd. has benefited from the overall positive sentiment of the industry, and the 0.37% increase in the industrial sector during the same period [0] further supported market confidence.
2. Price and Trading Volume
   : The stock price has risen by 26.52% in the past month, and it rose by 14.56% and 9.05% respectively on December 24-25, 2025 for two consecutive days, with trading volume higher than the 10-day average. The significant short-term price momentum has attracted investors’ attention [0].

1. Technical Aspect
   : The stock price is in a sideways range (support level: $41.37 / resistance level: $52.13), and the current closing price of $50.60 is close to the resistance level [0]. However, the KDJ and RSI indicators show overbought, limiting the short-term upside potential [0].
2. Fundamental Aspect
   : The company’s market capitalization is $114.26 billion [0], but it has been losing money for the past four quarters, with a net profit margin of -7.98% and ROE of -13.84%, lacking core financial support [0].

The current rise lacks company-specific catalysts [1][2][3][4][5], and combined with factors such as technical overbought and fierce industry competition, the risk of short-term correction is high [0].

1. Industry-driven Short-term Market Trend
   : This strong performance is mainly driven by the overall popularity of the new energy vehicle industry, rather than the improvement of the company’s own fundamentals, and the sustainability of the market trend depends on the continuation of industry trends.
2. Technical Warning Signals
   : The technical state of being close to the resistance level and overbought indicates significant short-term profit-taking pressure, so attention should be paid to the breakthrough of the $52.13 resistance level.

1. Risks
   : Risk of correction due to short-term technical overbought; weak fundamentals lack long-term support; intensified industry competition squeezes profit margins; no company-specific catalysts [0][1].
2. Opportunities
   : If the industry growth trend continues, or the company launches new businesses/technological breakthroughs, the stock price may receive further support.

Junda Co., Ltd. entered the strong stock pool mainly due to the growth dividends of the new energy vehicle industry and short-term price momentum. Technically, it is close to the resistance level and overbought, and its fundamentals are weak. Investors should pay attention to industry trends, changes in technical indicators, and company-specific catalysts, and carefully evaluate the risk of short-term correction.