Zaisheng Technology (603601.SH) - Reasons for Popularity and Investment Analysis

Zaisheng Technology (603601.SH) recently became a hot stock mainly driven by speculative hype about its SpaceX-related business [2]. On December 5, 8, and 9, 2025, the company’s stock closed with a cumulative deviation of over 20% in three consecutive trading days, triggering abnormal trading fluctuations [2]. During the same period, the company’s convertible bonds also fluctuated abnormally, with a cumulative increase of over 30% in three trading days, a significant increase in trading volume, and a turnover rate of 31.7% at one point [3].

From the company’s fundamental perspective, its aerospace business accounts for an extremely low proportion: in FY2024, this business’s revenue accounted for less than 0.5% of total revenue, which had no significant impact on the company’s performance; currently, there are no outstanding orders for the “high-silica fiber product” [2]. Meanwhile, the company’s recent revenue and net profit both decreased by 10.59% year-on-year, with poor fundamental performance [3].

1. Speculative sentiment dominates the market
   : This stock price increase is entirely driven by market rumors, not by substantial improvements in the company’s fundamentals. The company has clearly clarified that the relevant business has a negligible impact on performance [2].
2. Obvious valuation bubble
   : The company’s current P/E ratio reaches 131.9x, far higher than the average level of the Building Materials/Glass Fiber industry, with high valuation risks [3].
3. Risk and return are not equal
   : Although short-term market attention has driven stock prices up, speculative markets without fundamental support are usually unsustainable, and investors face high correction risks.

• Main risks
  : Stock price correction risk (lack of fundamental support), excessive valuation risk, performance decline risk [3].
• Opportunity window
  : If the company can achieve substantial expansion in aerospace business or significant improvement in fundamentals, it may bring long-term investment opportunities.
• Time sensitivity
  : The current stock price is at the peak of speculation, with high risks; investors need to closely monitor the company’s subsequent business progress and fundamental changes.

Zaisheng Technology (603601.SH) became a hot stock mainly due to speculative hype about its SpaceX-related business, and there was no substantial improvement in the company’s fundamentals. The current valuation bubble is obvious, and there is a high risk of correction. Investors should treat it cautiously, closely monitor the company’s subsequent business progress and fundamental changes, and avoid blind follow-up speculation.