Analysis of Consecutive Limit-Ups for Fenglong Co., Ltd. (002931): Bubbles and Risks Behind UBTECH's Acquisition

This analysis is based on reports from multiple media outlets including Securities Times, Gelonghui, and National Business Daily regarding Fenglong Co., Ltd.'s trading suspension and investigation announcement [1][2][7]. Fenglong Co., Ltd. has become a market focus as UBTECH (09880.HK) plans to acquire 43% of its shares for RMB 1.665 billion. Its shares recorded 13 consecutive limit-ups from December 25, 2025 to January 13, 2026, with a cumulative increase of 245.39%, and its total market value ballooned to approximately RMB 13.5 billion [1]. The company has voluntarily suspended trading for investigation starting from January 14, 2026. The short-term surge in share price has severely deviated from its fundamentals, with a static P/E ratio as high as 2009x, nearly 50 times the average level of its peers [7]. Investors must be highly vigilant against risks such as valuation bubbles, allegations of insider trading, and sharp volatility upon trading resumption.

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On December 24, 2025, Hong Kong-listed UBTECH (known as the “first stock of humanoid robots”) released a major announcement, planning to acquire 43% of Fenglong Co., Ltd.'s shares for RMB 1.665 billion in cash through a combination of “agreement transfer + tender offer” [1][2][3]. This transaction will make Fenglong Co., Ltd. the first A-listed subsidiary of UBTECH, with its actual controller changing from Dong Jiangang to Zhou Jian, founder of UBTECH.

Notably, seven days before the release of the acquisition announcement (i.e., December 17, 2025), Fenglong Co., Ltd.'s shares suddenly surged to hit the daily limit in the afternoon session. This abnormal move has sparked widespread market doubts about “insider trading” [3]. After the acquisition announcement was released, the share price embarked on a streak of consecutive limit-ups:

Time Node	Share Price	Remarks
December 17, 2025	Sudden limit-up	7 days before announcement release
Close on December 24, 2025	Approximately RMB 17.88	Closing price before suspension
December 25, 2025 - January 13, 2026	RMB 17.88 → RMB 61.79	13 consecutive limit-ups
Interval Increase	+245.39%	Significantly deviates from market trends
January 14, 2026	Trading Suspension for Investigation	-

Tian Feng, Dean of the Fast Thinking Slow Research Institute, analyzed that UBTECH’s acquisition decision is based on three strategic considerations [1]:

— Fenglong Co., Ltd. has deep roots in the precision manufacturing sector for many years, with a mature supply chain system and stable customer resources. These capabilities can effectively support the accelerated R&D and commercialization of UBTECH’s humanoid robots. UBTECH ranks among the top five in the global humanoid robot market, with its commercialization process accelerating significantly: in 2025, the total order amount has reached nearly RMB 1.4 billion, and its industrial humanoid robot production capacity exceeds 1,000 units, with over 500 units delivered, covering leading clients such as BYD, Dongfeng Liuzhou Motor, Geely Automobile, FAW-Volkswagen, Foxconn, and SF Express [5][6].

— By acquiring an A-listed company, UBTECH gains a domestic capital operation platform, which helps optimize its capital structure and expand financing channels.

— UBTECH has launched the mass production and delivery of the first batch of hundreds of Walker S2 units, and plans to increase its industrial humanoid robot production capacity to 10,000 units in 2026 [4]. This ambitious capacity target requires strong manufacturing capabilities, and Fenglong Co., Ltd.'s precision manufacturing capabilities perfectly meet this demand.

Fenglong Co., Ltd.'s main businesses are garden machinery parts, auto parts, and hydraulic parts, which belong to the traditional manufacturing sector, and there is a substantial difference from the currently hyped “humanoid robot” concept [1][7]. The company has clearly emphasized that UBTECH has no backdoor listing plan within the next 36 months, no asset restructuring plan within the next 12 months, and its main business will not change in the short term [1].

Financial Indicator	2023	2024	H1 2025
Net Profit Attributable to Parent	Loss of RMB 7.0402 million	RMB 4.5929 million	RMB 15.3141 million
Revenue	-	-	RMB 251 million (YoY +9.71%)
YoY Growth of Net Profit	-	-	+2217.66%

Although the net profit in H1 2025 increased by 2217.66% year-on-year, this growth is based on the low base effect of losses in 2023 and meager profits in 2024. The full-year net profit attributable to parent in 2024 was only RMB 4.5929 million. Based on the current market value of RMB 13.5 billion, the static P/E ratio is as high as 2009.52x [7].

Indicator	Fenglong Co., Ltd.	Peer Special Equipment Manufacturing
Static P/E Ratio	2009.52x	42.01x
Price-to-Book Ratio	10.67x	3.92x
Valuation Deviation	47.8x	1x

The company’s announcement clearly warns: “The company’s stock price has risen sharply in the short term, which has seriously deviated from the company’s fundamentals and obviously deviated from market trends” [1][7].

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Humanoid robots are one of the hottest concepts in the capital market in 2025. The maximum interval increase of the Tongdaxin “Humanoid Robot” concept index reached 105.40% [3]. Due to its equity relationship with UBTECH, Fenglong Co., Ltd. has been categorized into this hot track by the market, obtaining significant valuation premiums.

As a leading enterprise in the global humanoid robot sector, UBTECH’s brand effect and market position provide huge imagination space for Fenglong Co., Ltd. Investors expect Fenglong Co., Ltd. to realize business transformation with the help of UBTECH’s platform, upgrading from a traditional parts manufacturer to a supplier in the robot industry chain.

Consecutive limit-ups have formed a strong market follow-up effect, attracting a large amount of short-term capital to participate in the game. During the 13 limit-up days, the cumulative turnover rate remained at a high level, indicating fierce capital games.

The company’s main business is still traditional garden machinery parts, and humanoid robot business has not been implemented yet, which cannot contribute substantive revenue and profits in the short term. The company has clearly stated that there is no backdoor listing plan within 36 months and no restructuring plan within 12 months, which means the business transformation expected by the market will not occur in the foreseeable future [1][7].

A static P/E ratio of 2009x means that at the current profit level, it will take more than 2000 years to recover the investment cost. Even considering the most optimistic performance growth expectations, the share price has severely overdrawn the imagination space for the next few years.

In July 2024, Fenglong Co., Ltd. planned to transfer its control to Dingdu Yunxiang (a tourism development enterprise), but the plan was suddenly terminated on July 8, leading to a one-word limit-down [3]. This historical event indicates that there is uncertainty in the company’s capital operations, which has affected investor confidence.

The abnormal limit-up seven days before the announcement release has sparked widespread market doubts. On December 17, 2025, Fenglong Co., Ltd.'s shares suddenly surged to hit the daily limit in the afternoon session, while the acquisition announcement was not released until December 24. The highly coincidental timeline has raised suspicions of information leakage or insider trading [3].

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The current static P/E ratio is 2009x, while that of peers is only 42x, with the valuation level deviating from fundamentals by more than 47 times. Once market sentiment reverses or the post-suspension investigation results are not as expected, the share price may experience a sharp correction.

One of the core contents of the suspension and investigation is “the fluctuation of stock trading and whether there are violations”. If the regulatory authorities confirm the existence of insider trading or market manipulation, relevant responsible persons may face penalties, and the company may also be negatively affected.

Regardless of the investigation results, a large number of profit-making accumulated from 13 limit-ups may be cashed out centrally upon resumption, leading to sharp share price fluctuations.

The market’s enthusiasm for the humanoid robot concept may fade over time, and Fenglong Co., Ltd., which lacks fundamental support, will face pressure of valuation regression.

The “record” of the share price plummet after the termination of the control transfer in 2024 indicates that there is uncertainty in the company’s information disclosure of major matters and capital operations.

If UBTECH can transfer humanoid robot parts orders to Fenglong Co., Ltd. for production, it may bring substantive business transformation to the company in the long term. However, the company has clearly stated that there is no restructuring plan within 12 months, so this expectation cannot be realized in the short term.

The suspension and investigation may eliminate market uncertainties. If the investigation confirms no violations, some waiting funds may re-enter the market.

Risk Type	Severity	Probability	Urgency
Valuation Bubble Burst	High	High	High
Insider Trading Investigation	Medium	Medium	High
Sharp Volatility Upon Resumption	High	High	High
Concept Hype Fading	Medium	Medium	Medium
Historical Information Disclosure Issues	Low	Low	Low

: Risks significantly outweigh opportunities. The expected returns of buying at the current price cannot cover the potential risks. Investors are advised to remain cautious.

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• Suspension Time
  : Suspended from trading since the market opening on January 14, 2026, expected to last no more than 3 trading days [1]
• Investigation Content
  : Fluctuation of stock trading and whether there are violations
• Closing Price Before Suspension
  : RMB 61.79 per share (January 13, 2026)
• Total Market Value
  : Approximately RMB 13.5 billion

Scenario	Probability	Post-Resumption Trend Forecast
No abnormalities found in investigation, consecutive limit-ups continue upon resumption	Medium	May hit historical highs, but need to be vigilant against profit-taking after good news is fully reflected
Abnormalities found in investigation	Medium	May face concentrated selling of profit-making shares, leading to sharp share price correction, even a limit-down
No major changes in fundamentals	High	Great risk of valuation regression, share price may fall 30%-50% from the peak

Based on technical analysis and valuation models, the following price levels are worthy of attention:

• Resistance Level
  : RMB 70 (historical high area)
• Support Level
  : RMB 50 (previous platform consolidation interval)
• Strong Support Level
  : RMB 35 (price area before the acquisition announcement)

• Short-Term (1-3 Trading Days)
  : Investigation results are announced, and the share price may fluctuate sharply upon resumption
• Medium-Term (1-4 Weeks)
  : Profit-making shares are gradually digested, and the share price seeks a new equilibrium interval
• Long-Term (1-6 Months)
  : Valuation returns to fundamentals, and the share price gradually matches performance

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The core driving factor of Fenglong Co., Ltd.'s current surge is UBTECH’s acquisition offer, but the 245% increase in 13 trading days has severely overdrawn the future imagination space. The company has clearly stated that there is no backdoor listing plan, and its main business has not changed. The share price increase is more the result of concept hype and capital games.

:

• Consecutive Limit-Ups: 13 trading days (December 17, 2025 - January 13, 2026)
• Interval Increase: 245.39%
• Static P/E Ratio: 2009.52x (peers: 42.01x)
• Price-to-Book Ratio: 10.67x (peers: 3.92x)
• Market Value Before Suspension: Approximately RMB 13.5 billion
• UBTECH’s Acquisition Consideration: RMB 1.643 billion (43% equity)

: Risks far outweigh opportunities at the current price. The company has voluntarily applied for suspension and investigation, implying possible abnormal trading behaviors. Retail investors should maintain a wait-and-see attitude and are not advised to chase the rally. Those who already hold shares may consider cashing out profits at high levels, and those who do not hold shares are not advised to enter the market.

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[1] Securities Times - Fenglong Co., Ltd.'s Suspension and Investigation Announcement

[2] Gelonghui - Fenglong Co., Ltd.'s Suspension and Investigation

[3] Caifuhao/Eastmoney - “The First Demon Stock of Robots” in 2026

[4] Sina Finance - UBTECH’s Production Capacity to Reach 10,000 Units in 2026

[5] Time Weekly - Interview with Tan Min, CBO of UBTECH

[6] Sina Finance - UBTECH Delivers 500 Units, Orders Reach Nearly RMB 1.4 Billion

[7] National Business Daily - Fenglong Co., Ltd.'s Abnormal Stock Trading Fluctuation to Suspend for Investigation