Analysis of Fenglong Co., Ltd. (002931)’s 11 Consecutive Limit-Ups: Hype and Risks Behind UBTECH’s Acquisition

January 10, 2026 | UBTECH’s Controlling Stake Acquisition Triggers Consecutive Limit-Ups

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On December 24, 2025, UBTECH (09880.HK) announced the acquisition of a 43% stake in Fenglong Co., Ltd. for RMB 1.665 billion, which served as the core catalyst for this round of skyrocketing gains[1][2]. As one of the world’s top three humanoid robot manufacturers, UBTECH’s acquisition was interpreted by the market as a dual positive of “humanoid robot concept + A-share listing”, triggering a frenzy of capital chasing. Since its resumption of trading on December 25, 2025, Fenglong Co., Ltd. has recorded 11 consecutive limit-ups in 11 trading days, with a cumulative increase of over 200%, and its market capitalization has climbed to RMB 11.16 billion[0][2].

From the perspective of industrial chain integration, UBTECH secured nearly RMB 1.4 billion in humanoid robot orders in 2025. Its WalkerS2 industrial humanoid robot started mass production and delivery in November 2025, with a current monthly production capacity of over 300 units. The full-year delivery volume for 2025 is expected to exceed 500 units, and the production capacity target is planned to be raised to 10,000 units by 2027[2]. This commercialization progress has injected strong expectations into the market. Coupled with the overall boom in the humanoid robot track (the maximum interval increase of the Tongdaxin “Humanoid Robot” concept index reached 105.40%), Fenglong Co., Ltd. has been driven to become one of the strongest “meme stocks” in 2025[1].

The current technical pattern shows typical characteristics of a one-word limit-up, making it extremely difficult to buy[0]. As of January 9, the capital locked in the limit-up reached RMB 3.56 billion, indicating strong bullish momentum[2]. However, today’s trading volume is only 974,000 shares, far lower than the average daily volume of 9.62 million shares, indicating obvious reluctance to sell in the market and little selling pressure. From the moving average system, the 20-day moving average is at RMB 26.98, the 50-day moving average is at RMB 21.95, and the current price of RMB 51.06 has deviated significantly from all moving averages, with the technical deviation rate at a historical extreme level[0].

Despite the soaring stock price, fundamental data reveals significant valuation risks. According to the latest financial data, Fenglong Co., Ltd. has a static P/E ratio of as high as 2208 times and a price-to-book (P/B) ratio of approximately 11.74 times, while the industry averages are only 42 times and 3.94 times respectively, representing a valuation deviation of over 50 times[2]. The company recorded a net loss attributable to parent company shareholders of RMB 7.04 million in 2023, and only a net profit of RMB 4.59 million in 2024, showing weak and volatile profitability[0]. The company has issued multiple abnormal fluctuation announcements and risk warnings, explicitly stating that there are no plans to change its main business or conduct major asset restructuring within 12 months, and no backdoor listing arrangements within 36 months[3][4].

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This event reveals the typical characteristics of the “theme hype + controlling stake transfer” model in the A-share market. UBTECH chose to realize capitalization by acquiring the controlling stake of an A-listed company rather than conducting an independent IPO, reflecting the current capital market’s high recognition and chase for scarcity in the humanoid robot track. Research by Citigroup predicts that the global number of humanoid robots will reach 648 million by 2050, and this long-term vision provides narrative support for short-term hype[1].

It is worth noting that Fenglong Co., Ltd. has a precedent of a change in controlling shareholder. In February 2024, the company planned to transfer its stake to Dingdu Yunxiang (in the tourism development sector), but announced the termination on July 7, 2024, and encountered a one-word limit-down the next day[1]. This historical case reminds investors that controlling stake transfer matters are uncertain, and market expectations may reverse rapidly.

From the perspective of market behavior, the abnormal limit-up on December 17 before the suspension has aroused investors’ suspicions of insider trading[1]. The Shenzhen Stock Exchange has placed Fenglong Co., Ltd. under key monitoring, and multiple securities firms have successively issued risk warnings[3]. This pattern of “pre-suspension limit-up—trading suspension—acquisition announcement—consecutive limit-ups” exposes the problem of market information asymmetry, which may trigger subsequent regulatory investigations.

In addition, investors buying at the current price face severe downside risks. Although Citigroup is bullish on the humanoid robot market in the long term, this is based on the 2050 vision of 648 million units, which has no connection with the company’s actual business contribution at present. Fenglong Co., Ltd.'s current main business is still traditional businesses such as garden machinery parts, auto parts, and hydraulic parts, and the humanoid robot concept is difficult to convert into substantial performance in the short term[3].

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: The current P/E ratio is more than 50 times the industry average, and the P/B ratio is nearly 3 times the industry average, severely deviating from fundamental support[2]. Once market sentiment reverses, the valuation regression process may be violent.

: Under the key monitoring of the Shenzhen Stock Exchange, the company has warned that if the stock price rises further abnormally, it may apply for a trading suspension for investigation[3][4]. Historical experience shows that stocks under key monitoring often face adjustment pressure.

: The abnormal limit-up before the suspension has attracted regulatory attention. If the investigation finds that there are violations, it may have a major impact on the company’s stock price[1].

: It is difficult for ordinary investors to buy when the stock is in a one-word limit-up state. Once the limit-up is broken, a rapid decline may occur due to the emergence of a large number of profitable accumulated positions.

From an optimistic perspective, if UBTECH can subsequently inject its humanoid robot business into Fenglong Co., Ltd. substantially and the integration progresses smoothly, it may share the industry growth dividends in the long term. However, the company has clearly stated that there are no backdoor listing arrangements within 36 months, so this expectation cannot be realized in the short term[4]. For investors who already hold positions, they may consider reducing positions in batches to lock in profits; for off-market investors, the risk-return ratio of participating at the current price is extremely unsatisfactory.

Short-term (1-3 trading days): There is a possibility of inertial growth, but the probability decreases with the increase in the number of consecutive limit-ups, and regulatory dynamics need to be watched closely.

Mid-term (1-4 weeks): The pressure from accumulated profitable positions increases, and it is highly likely to experience volatile adjustments after the limit-up is broken.

Long-term (1-6 months): It is necessary to observe UBTECH’s substantive integration actions, but the current price has seriously overdrawn future expectations.

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This analysis is based on multi-dimensional information integration, aiming to provide objective background support for decision-making and does not constitute investment advice.

: UBTECH acquired a 43% stake in Fenglong Co., Ltd. for RMB 1.665 billion. After the transaction is completed, Fenglong Co., Ltd. will become UBTECH’s first A-listed subsidiary[1][2]. UBTECH is one of the world’s top three humanoid robot manufacturers, and its commercialization process accelerated in 2025, injecting imagination into the market.

: 11 consecutive limit-ups with a cumulative increase of over 200%, capital locked in the limit-up reached RMB 3.56 billion, and shrinking trading volume indicates reluctance to sell[0][2]. The technical aspect is in an extreme overbought state.

: Severe deviation of valuation from fundamentals (P/E ratio 2208 times vs. industry average 42 times), placed under key monitoring by the Shenzhen Stock Exchange, and the company has issued multiple risk warnings[2][3][4]. The abnormal limit-up before the suspension has aroused suspicions of insider trading. There is a precedent of a limit-down after a failed controlling stake transfer in history[1].

: Explicitly stated that there are no plans to change its main business within 12 months, and no backdoor listing arrangements within 36 months[4]. The current main business is still traditional businesses such as garden machinery parts, auto parts, and hydraulic parts.

: This report cites real-time market and financial data from the Jinling Analysis Database[0], as well as analytical reports from external information sources such as 21st Century Business Herald, Gudong Manager, Eastmoney, and Lianchuang Securities[1][2][3][4].

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[0] Jinling Analysis Database - Real-time Market, Financial Data and Technical Indicators

[1] Gudong Manager - 《“Top Meme Stock of 2026” in Robotics Sector Skyrockets! 11 Limit-Ups in 11 Days!》 (https://www.popcj.com/songta/0029312601468614)

[2] 21st Century Business Herald - 《Surpassing Shanghai Weixing New Materials! Riding on UBTECH’s Coattails, Fenglong Co., Ltd. Secures 11 Consecutive Limit-Ups》 (https://www.21jingji.com/article/20260109/herald/e829021505b9202ed1a708a262d136a4.html)

[3] Eastmoney - 《UBTECH’s Entry Catalyzes 7 Consecutive Limit-Ups! Fenglong Co., Ltd. Issues Urgent Warning Again》 (https://finance.eastmoney.com/a/202601073610806270.html)

[4] Lianchuang Securities - 《Risk Warning on the Securities Trading of “Fenglong Co., Ltd.”》 (https://www.lczq.com/main/a/20260108/47404.html)