Fenglong Co., Ltd. (002931) Strong Performance Analysis: UBTECH Acquisition Drive and Sustainability Assessment

Fenglong Co., Ltd. (002931) resumed trading on December 25, 2025, and saw two consecutive limit-up days. As of the close on December 26, the stock price was RMB23.82 per share, with a cumulative increase of 21.04%[0]. The core driver of its strong performance is the acquisition announcement by UBTECH (HK:09880), the “first humanoid robot stock”[1][2][3][4]. UBTECH plans to spend RMB1.665 billion to acquire 43% of Fenglong’s shares via “agreement transfer + tender offer” and will become the controlling shareholder upon completion. The logic behind this acquisition is that UBTECH uses Fenglong’s precision manufacturing capabilities, mature supply chain, and customer base to accelerate the industrialization of humanoid robots[2][3][4]. From a technical perspective, the current stock price hit a 52-week high[0], but the trading volume (793,500 shares on December 25 and 135,600 shares on December 26) is far lower than the average volume of 10.62 million shares, indicating that the short-term rise is more event-driven[0].

1. Cross-sector Linkage Effect
   : The acquisition not only boosted Fenglong’s stock price but also drove the robot sector to rise collectively; concept stocks like Guanglian Aviation and Haozhi Electromechanical saw significant gains, reflecting the market’s high attention to the humanoid robot track[4].
2. Event-driven Short-term Market
   : Low trading volume and rapid limit-ups indicate that the stock price increase is mainly stimulated by the acquisition news rather than sustained large capital inflows. Future trends highly depend on the market’s verification of acquisition synergy expectations[0][3].
3. Valuation-Fundamentals Divergence
   : The current PE ratio is 208.81 times, far higher than the industry average, contrasting with Fenglong’s fluctuating revenue and net profit from 2020 to 2024 (with a loss in 2023), highlighting the short-term speculative nature of market sentiment[0][5].

1. Valuation Correction Risk
   : If the excessively high PE ratio cannot be converted into performance growth through future synergy effects, the stock price may face a sharp correction[0].
2. Transaction Uncertainty
   : The acquisition still requires approval from UBTECH’s shareholders and other procedures, with the possibility of failure or delay[4].
3. Integration and Performance Pressure
   : The effect of post-acquisition business integration and improvement of Fenglong’s fundamentals takes time to verify, and short-term performance improvement is uncertain[5].

1. Growth Dividend of Robot Industry
   : The humanoid robot track is in a rapid development stage; the synergy between UBTECH and Fenglong may capture industry growth opportunities[3][4].
2. Synergy Potential of Technology and Manufacturing
   : Fenglong’s precision manufacturing capabilities support UBTECH’s mass production; if synergy is smooth, it may enhance the company’s long-term competitiveness[2][3].

Fenglong’s strong performance is directly driven by the UBTECH acquisition event. Short-term market sentiment is positive but trading volume is insufficient, with a divergence between valuation and fundamentals. The acquisition’s synergy effects, transaction progress, and robot industry development will be the core factors affecting its trend. Investors should pay attention to the acquisition approval process, company integration progress, and industry dynamics to objectively evaluate its long-term investment value.