Hengda New Materials (301469): Reasons for Strong Limit-Up and Prospect Analysis

Hengda New Materials (301469)'s strong performance is driven by both

and :

1. Company Level: Sufficient Fundamental Support
   • Performance Growth
     : In Q3 2025, revenue increased by 15.01% YoY, net profit by 48.08% YoY, and non-net profit by 66.87% YoY. Single-quarter profitability improved significantly [1].
   • Capacity Expansion Boosts Long-Term Growth
     : The wholly-owned subsidiary added 60,000 tons of capacity, bringing total capacity to 150,000-160,000 tons, further enhancing market competitiveness [1].
   • Share Repurchase Signals Confidence
     : The company raised the upper limit of share repurchase amount from 30 million yuan to 50 million yuan, reflecting management’s recognition of the company’s value [1].

2. Sector Level: Short-Term Catalyst from RMB Appreciation
   
   Offshore RMB against USD broke through the 7.0 mark. The paper industry relies on imported pulp and other raw materials; RMB appreciation directly reduces procurement costs, driving the overall strength of the sector [2].

3. Technical Side and Market Sentiment
   • Price and Volume
     : Closed at the 20% limit-up price of 35.16 yuan, with a daily turnover of 195 million yuan and a turnover rate of about 12%, indicating high capital participation [1].
   • Market Sentiment
     : Multiple stocks in the paper sector rose by the limit synchronously, with significant profit-making effects in the sector. Combined with the company’s own positives, investor confidence has been enhanced [2].

1. Synergistic Effect of Dual Catalysts
   : The company’s fundamental positives provide a long-term growth logic, while the short-term sector catalyst of RMB appreciation amplifies the market response. The combination of the two推动 the stock price to a strong limit-up.
2. Impact of Small Market Capitalization Attribute
   : The company’s total market capitalization is 3.146 billion yuan and circulating market capitalization is 1.619 billion yuan [1]. The small market capitalization feature makes the stock price volatility more significant under capital promotion.

: If the RMB appreciation trend continues and the new capacity is消化 smoothly, the company’s performance is expected to grow continuously, and the stock price may continue to be strong; the share repurchase plan enhances market confidence, and long-term value is promising.

:

• Risk of Sustainability of RMB Appreciation
  : If the exchange rate trend reverses, it will weaken the cost advantage of the paper sector [2].
• Risk of Capacity Digestion
  : The new capacity needs to match downstream demand, and there are market competition and digestion pressures [1].
• Continuity of Performance Growth
  : Attention needs to be paid to whether the performance in Q4 2025 and 2026 can continue the high growth momentum of Q3 [0].

Hengda New Materials’ strong performance is based on the dual catalyst logic. The short-term technical side is in the stage of strong breakthrough. The short-term resistance level is the limit-up price of 35.16 yuan, and the support level can be关注 around 30 yuan [0]. Investors need to closely track the RMB exchange rate trend, capacity digestion progress, and subsequent performance to evaluate the sustainability of the market.