Zhitai New Materials (300986) Hits 4 Consecutive Limit Ups, Triggers Severe Abnormal Fluctuation Risk Warning

Item	Data
Stock Ticker	300986.SZ
Company Name	Jiangxi Zhitai New Materials Co., Ltd.
Industry	Industrials - Metal Products/Building Decoration
Core Business	Aluminum Formwork, Protection Platforms, Prefabricated Assemblies
Current Price	$27.82
Market Capitalization	$7.18 Billion

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The core reason Zhitai New Materials has become a trending stock recently is its extreme trend of

[1][2]:

• January 5 to 8, 2026
  : 4 consecutive closing limit-ups, with a cumulative deviation of over 100%
• Triggers Severe Abnormal Fluctuations
  : According to the Shenzhen Stock Exchange Trading Rules, this falls under the category of severe abnormal stock trading fluctuations [1]
• 5-Day Gain
  : +126.00%
• 1-Month Gain
  : +169.57%
• YTD Gain
  : +107.30% [0]

According to survey data from Eastmoney users [3]:

• Bullish Sentiment
  : 81.08%
• Bearish Sentiment
  : 18.92%

As of January 8, 2026, the company’s stock closed at RMB23.18 per share, which still has considerable upside potential compared to the current price of $27.82.

On January 9, 2026, the

, ranking among the top-performing sectors of the day [0], providing certain sector-level support for this stock.

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Time Horizon	Price Change	Assessment
1-Day	+20.02%	Extreme Gain
5-Day	+126.00%	Extremely Strong
1-Month	+169.57%	Deviated from Fundamentals
3-Month	+133.00%	Sustained Irrationality
1-Year	+242.19%	Bubbly

Indicator	Value	Analysis
20-Day Moving Average	$12.64	Current price is 2.2x the moving average, a severe deviation
Daily Volatility	8.00%	High-volatility stock
Average Daily Trading Volume	14.98 Million Shares	Significantly higher than normal levels
Price Range	$9.68 - $27.82	183.59% amplitude, extreme volatility

Price Level Type	Price
52-Week Low	~$9.68
Limit-Up Price (January 9)	~$27.82
20-Day Moving Average	$12.64

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, clearly warning of the following risks:

1. Valuation Seriously Deviates from Industry Levels
   :
   • Company Trailing P/E Ratio: 72.22x
   • Industry P/E Ratio: 35.60x (the company’s ratio is 2.03x the industry average) [1]
   • Company P/B Ratio: 4.48x
   • Industry P/B Ratio: 2.94x (the company’s ratio is 1.52x the industry average) [1]

2. No Major Changes in Fundamentals
   :
   • The company clearly stated, “There have been no major changes in the company’s recent operating conditions or internal and external business environment” [1][2]
   • “The company’s stock price has risen sharply in the short term, significantly deviating from the market index, and the cumulative increase has seriously deviated from fundamentals” [1]

3. Capital Flow
   :
   • On January 5, single-day turnover reached RMB1.106 billion, with a turnover rate of 20.96% [3]
   • Significant participation from institutional capital, but sustainability is questionable

• A survey on Eastmoney shows 81.08% of investors are bullish [3]
• However, note that such extreme optimism often appears at the top of a market rally

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Indicator	Value	Industry Comparison	Assessment
P/E (TTM)	82.70x	Industry 35.60x	Seriously Overvalued
P/B	5.13x	Industry 2.94x	Overvalued
ROE	7.38%	-	Average Profitability
Net Profit Margin	4.83%	-	Low
Current Ratio	0.91	-	Tight Liquidity
Quick Ratio	0.78	-	Short-term Debt Repayment Pressure

Reporting Period	EPS	Revenue (in Millions)
Q3 2025	$0.11	$723.66
Q1 2025	$0.10	$556.07
Q4 2024	$0.06	$721.20
Q3 2024	$0.21	$670.91

: EPS in Q3 2024 was $0.21, while EPS in the latest quarter is only $0.11, representing a , yet the stock price has risen by over 240%, creating a serious divergence.

• Accounting Conservatism
  : Conservative accounting policies, high depreciation/capital expenditure ratio
• Free Cash Flow
  : Negative at RMB172 million in the latest fiscal year
• Debt Risk
  : Classified as high-risk

• Core Business
  : R&D, production, and sales of aluminum formwork, protection platforms, prefabricated assemblies, and other products
• 2024 Revenue
  : RMB2.526 billion, net profit of RMB73.6951 million
• 2025 First Three Quarters Revenue
  : RMB2.023 billion, net profit of RMB118 million

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Risk Type	Details
Valuation Bubble	P/E is 2x the industry average, P/B is 1.5x the industry average; stock price seriously deviates from reasonable value
Performance Divergence	Net profit fell 47.6% year-on-year, yet stock price rose over 240%
No Substantial Positive Catalysts	The company clearly stated there have been no major changes in fundamentals
Regulatory Attention	Consecutive limit-ups have triggered exchange abnormal fluctuation monitoring
Capital Flight Risk	Huge pressure from profit-taking after a short-term surge
Liquidity Risk	No audit confirmation available before the 2024 annual report

1. Official Company Warning
   : “The company’s stock price has risen sharply in the short term, significantly deviating from the market index, and the cumulative increase has seriously deviated from fundamentals, posing a risk of a sharp short-term pullback in the stock price” [1]

2. Market Manipulation Risk Warning
   : Be alert to market manipulation during abnormal fluctuations

3. Annual Report Risk
   : The 2025 annual report will be released on April 25, 2026, posing a high risk of performance invalidation

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Dimension	Judgment	Reason
Momentum	Extremely strong but fading	Strong technical adjustment demand after 4 consecutive limit-ups
Fundamentals	Severe divergence	Performance declined but stock price surged 2.4x
Valuation	Bubble Zone	P/E 82x vs industry 36x
Sustainability	Unsustainable	The company has clearly warned of risks

Scenario	Probability	Trigger Condition
Sharp Pullback	High	Concentrated profit-taking leading to a return to reasonable valuation
High-Range Volatility	Medium	Hot money continuation, but increased volatility
Continued Limit-Ups	Low	Requires new major positive catalysts

Price Level Type	Price	Significance
Support Level 1	20-Day Moving Average $12.64	Strong support
Support Level 2	Previous Platform $15-$18	Medium-term support
Resistance Level	All-Time High $27.82	Short-term pressure

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Zhitai New Materials (300986) currently belongs to a

, not fundamentally driven:

✅

: 4 consecutive limit-ups, attracting market attention and capital inflows

❌

: 47.6% year-on-year performance decline, no substantial positive catalysts, valuation far exceeding industry levels

⚠️

: Extremely High – The company has issued an abnormal fluctuation announcement and warned of risks

1. This stock is currently a high-risk speculative target
   , unsuitable for conservative investors
2. If participating, set strict stop-losses and control position sizes
3. Monitor potential break of the limit-up streak and subsequent trends in January 2026
4. Be alert to the risk of performance invalidation before the annual report release (April 25)