Jinchengzi (688291) Strong Performance: Catalysts and Outlook Assessment

Jinchengzi (688291) entered the strong stock pool on January 1, 2026, with the core driving factor being the overwhelming approval of the acquisition plan announced on December 30, 2025 by shareholders [1]. This acquisition is the company’s first M&A and financing project after listing. It plans to acquire 55% equity in Changchun Summit Optoelectronics by issuing shares and paying cash, aiming to enter the aerospace field with extremely high technical barriers and added value. It is expected to bring new profit growth points and achieve business diversification for the company. In terms of fundamentals, the company’s third-quarter revenue and net profit achieved year-on-year growth of 15.80% and 32.86% respectively [0]. As a leader in laser processing control systems, its financial performance with low debt and high gross profit margin provides support for the stock price. Technically, it entered a strong range driven by events. In terms of market sentiment, institutions such as CITIC Construction Investment and Changjiang Securities are optimistic about the synergies after the acquisition [0], and the overwhelming approval by shareholders also shows recognition of the strategic layout.

1. Strategic transformation breaks growth ceiling
   : This acquisition marks the company’s extension from traditional laser processing control systems to high-end aerospace optoelectronics fields, with significantly improved industry space and added value [0];
2. Resonance between sentiment and fundamentals
   : Consensus bullishness from institutions, overwhelming support from shareholders, and third-quarter performance growth form positive resonance, which is the core logic of the stock’s strength [0][1];
3. Valuation premium implies growth expectations
   : The current TTM P/E ratio of 110.96 is higher than the industry average [2], but the market has already reflected expectations for long-term growth after the acquisition in advance.

• Opportunities
  : Entering the high-value-added aerospace field to open up new growth space; M&A synergies are expected to significantly increase profits [0];
• Risks
  : The acquisition still needs Shanghai Stock Exchange review and CSRC registration, with approval uncertainty [0]; Excessively high valuation may trigger short-term corrections [2]; The effect of business, technology and team integration after the acquisition is questionable [0].

Jinchengzi (688291) entered the strong stock pool due to the catalytic event of acquiring Summit Optoelectronics, supported by fundamentals and market sentiment. Its sustainability depends on the progress of acquisition approval, integration effect, and subsequent performance implementation. This report only provides information synthesis and does not constitute any investment advice.