Analysis of the Reasons and Sustainability of Risong Technology (688090)'s Strong Performance

1. Price Performance and Trading Volume
   : Risong Technology’s stock price has risen strongly recently, with a 20.01% increase in the past 1 day, 21.87% in 5 days, and 30.67% in 1 month. On December 29, 2025, the trading volume reached 19.11 million shares, far exceeding the average level of 3.15 million shares, indicating strong market buying interest [0].
2. Company Fundamentals
   : It belongs to the Industrial-Machinery industry with a market capitalization of 5.96 billion USD. Financial indicators are weak: earnings per share are negative, net profit margin is -0.18%, price-to-earnings ratio is -4127.44x, and return on equity is -0.16% [0].
3. Technical Analysis
   : The stock price shows an upward trend (to be confirmed), with a buy signal issued on December 18. The support level is 39.28 USD, the current price has touched the resistance level of 48.70 USD, and the next target level is 50.79 USD. KDJ and RSI indicators show overbought conditions, with a risk of correction [0].
4. DCF Valuation
   : Under conservative and baseline scenarios, the stock price is overvalued with fair values of 16.65 USD and 24.34 USD respectively; only under the optimistic scenario is the fair value 52.58 USD, leaving an 8% upside potential [0].
5. Industry Background
   : The intelligent manufacturing industry (related to AI and semiconductors) performed strongly at the end of 2025. The IPO boom of AI chips on the Sci-Tech Innovation Board (STAR Market) drove industrial stocks higher, and Risong Technology was boosted by industry sentiment [0].

• Driving Factors
  : The current strong performance is mainly driven by industry sentiment from the AI trend in intelligent manufacturing and technical momentum, rather than its own fundamental support [0].
• Divergence Phenomenon
  : DCF valuation shows overvaluation in most scenarios, which together with technical overbought signals indicates that the current uptrend lacks solid support [0].

• Risks
  : Overbought technical conditions may lead to short-term corrections; weak fundamentals (negative profit margin, high P/E ratio) persist; valuation pressure is prominent [0].
• Opportunities
  : If the AI expansion trend in intelligent manufacturing continues, industry sentiment may support short-term performance; there is limited upside potential under the optimistic valuation scenario [0].

Risong Technology’s recent strong performance is driven by industry trends and technical momentum, but fundamental support is insufficient, technical indicators show overbought signals, and DCF valuation indicates overvaluation in most cases. The sustainability of the current uptrend may be limited; close attention should be paid to industry dynamics and changes in technical indicators.