Analysis Report on the Strong Performance of Haichang New Materials (300885)

Haichang New Materials (300885)'s strong performance is mainly driven by industry-level catalysts. As an advanced manufacturing process, Metal Injection Molding (MIM) has seen sustained demand growth in the fields of automotive electrification, advanced electronics, and industrial automation. Market research shows that the Japanese PIM market is expected to have a compound annual growth rate of 7.1% from 2025 to 2035 [1], and stainless steel powder (a key material for MIM) is in high demand in the manufacturing of precision structural components [2]. From a technical perspective, the stock has risen by approximately 37% since December 17, forming a clear upward trend; today’s trading volume was 44.16 million shares, which is 2.25 times the 10-day average trading volume [0], indicating positive market sentiment. However, there is a lack of company-specific positive news or signs of large-scale institutional involvement, so the rise is more driven by industry trends and market sentiment.

1. Industry Trend Drives the Rise
   : The long-term growth potential of the MIM industry is the core factor driving the stock price, rather than short-term company-level catalysts.
2. Strong Market Sentiment but Lack of Support
   : High trading volume indicates that investors are optimistic about the prospects of the MIM industry, but without company-specific positive news or insider trading information, the sustainability of the rise is questionable.
3. Valuation Deviates from Trend
   : Although the technical side shows an upward trend, the P/E ratio of 112.88x is much higher than the industry average [0], and valuation pressure may restrict subsequent gains.

1. High Valuation Risk
   : The current P/E ratio of 112.88x is significantly higher than the industry average, and there is pressure for valuation correction [0].
2. Volatility Risk
   : Today’s sharp rise is accompanied by a surge in trading volume, and future prices may experience large fluctuations.
3. Industry Competition Risk
   : The MIM industry is highly competitive, and the company needs to continuously improve its technology and production capacity to maintain competitiveness.

The wide application of MIM technology in multiple industries and the global manufacturing industry’s shift towards high precision provide long-term growth opportunities for the company.

• Haichang New Materials (300885) rose by 21.82% on December 30 and hit the daily limit.
• The rise is mainly driven by the growth in demand for the MIM industry, and today’s trading volume is 2.25 times the 10-day average.
• The resistance level is the 52-week high of $32.14, and the support level is around the 10-day moving average of $24.60 [0].
• Risks such as high valuation and lack of company-specific catalysts need to be noted. It is recommended to make a cautious judgment based on industry trends and price levels.