Sanji Technology (600520) Limit-Up Analysis: Catalyzed by Domestic Substitution Theme, Severe Divergence Between Valuation and Fundamentals

Sanji Technology (600520) surged by the 10% daily limit on January 15, 2026, closing at RMB 28.84 with a 9.99% gain. Its turnover reached RMB 229 million, and trading volume was 4.27 times the daily average [0][4]. This limit-up was the result of the combined effect of multiple factors, featuring a three-tier catalytic structure of “policy-driven + industry boost + corporate changes”.

: The US announced tariff hikes on some semiconductor products on January 15, 2026, directly stoking the urgency of domestic substitution for semiconductor equipment [1]. As an established domestic supplier of semiconductor packaging equipment, Sanji Technology has semiconductor packaging molds and equipment accounting for as high as 75.69% of its main business, and is regarded by the market as a core beneficiary of domestic substitution. The company’s main products include plastic packaging molds, lead frame trimming and forming systems, packaging robots, etc., which are key equipment in the semiconductor testing and packaging segment, with clients covering leading domestic testing and packaging enterprises such as Tongfu Microelectronics [2].

: TSMC, the world’s leading wafer foundry, released better-than-expected earnings results on the same day, with net profit reaching NT$505.7 billion in Q4 2025, a 35% year-on-year increase and a record high [3]. TSMC expects its US-dollar-denominated sales to grow by nearly 30% in 2026, and its capital expenditure will surge from US$40.9 billion in 2025 to US$52-56 billion. TSMC’s strong performance directly boosted the overall bullish sentiment in the semiconductor equipment sector. The advanced packaging sector rallied collectively on the day, with Lanjian Electronics and Xidian Co., Ltd. surging by the 20% daily limit [1][7].

: Hefei State-owned Assets Supervision and Administration Commission (SASAC) has become the company’s actual controller, endowing the company with the dual attributes of “local state-owned assets + semiconductor equipment”. The market expects that the company will receive more local industrial resources and policy support [2]. In addition, through the acquisition of 51% equity in Anhui Zhonghe Semiconductor, the company’s total assets increased by 56.65% year-on-year, effectively expanding its business scale [4]. The company also actively responded to the requirements of the new Company Law, optimized its corporate governance structure, revised its articles of association and rules of procedure, and improved decision-making efficiency.

From a technical indicator perspective, Sanji Technology is in a clear upward trend. The KDJ indicator shows a K value of 84.4, D value of 74.1, and J value of 105.0, which are in the overbought zone, while the RSI indicator is around 75-80, also showing an overbought status [0]. The MACD indicator has formed a golden cross, sending a clear short-term bullish signal. The 20-day moving average is RMB 25.52, 50-day moving average is RMB 26.06, and 200-day moving average is RMB 28.26, with the current stock price slightly above the long-term moving average.

In terms of trading volume, it expanded significantly, with 13.23 million shares traded on the day, 4.27 times the daily average of 3.1 million shares, and a turnover rate of about 5.0%, indicating the involvement of major capital and a net buying status of oversized orders [4]. The technical analysis system shows that the stock triggered a buy signal on January 6, and is currently in the “upward breakout day, to be confirmed” phase [0]. The key support level is RMB 25.87, the first resistance level is RMB 28.84 (already reached), and the next target level is RMB 29.56.

Market sentiment towards this stock is clearly divided. Bulls believe that “capital digging is too fast” and are optimistic about the sustainability of the semiconductor domestic substitution theme; bears question the company’s historical performance, believing that “it has been falling continuously after the acquisition” [5][6]. Discussions on social media are active, with about 54,690 people following the stock, but there has been no new analyst coverage recently. The overall sentiment of the sector is positive, with Xidian Co., Ltd. rising more than 15% to a record high, and companies such as Xinyuan Micro, Zhongke Feice, and AMEC following the upward trend.

lie in the severe divergence between valuation and fundamentals. The price-to-earnings ratio (PE) is as high as 503.98x, far exceeding the industry average, and the price-to-book ratio (PB) is 11.77x, also at a high level, while return on equity (ROE) is only 2.37% and net profit margin is 2.85%, indicating weak profitability [0]. Earnings per share (EPS, TTM) is only RMB 0.06, and the valuation level is significantly divorced from fundamental support, driven mainly by themes and sentiment. Technically, it is severely overbought, with a J value of 105.0 and a 5-day gain of 12.35%, creating short-term profit-taking pressure.

lies in the continuous deepening of the domestic substitution theme and increased policy support. US tariff hikes will benefit domestic semiconductor equipment enterprises in the long run, and after the entry of Hefei SASAC as the controlling shareholder, the company is expected to receive more resource inclinations. The capital expenditure expansion of industry leaders such as TSMC will directly drive equipment demand. If the semiconductor sector continues to strengthen as a whole, this stock is expected to benefit from the sector linkage effect.

Based on scenario analysis, if the semiconductor sector continues to strengthen and trading volume remains high, the stock may open high and surge by the daily limit, with the potential to hit consecutive limit-ups; if the sector diverges but capital acceptance is good, it may open high and fluctuate to digest profit-taking orders; if the sector pulls back coupled with capital flight, it may surge and then pull back to close with a long upper shadow. Key prices for tomorrow include the limit-up price of RMB 31.72 (if it hits the limit), today’s closing price of RMB 28.84 (short-term support), the 5-day moving average of around RMB 26.80 (important pullback support), and the 10-day moving average of around RMB 25.50 (medium-term support).

Today’s limit-up of Sanji Technology is a typical theme-driven limit-up, superimposed with the sector effect and catalyzed by US tariff hikes. The catalyst strength is medium to high, but fundamental support is weak, and the technical aspect is in an overbought state. Its short-term performance will highly depend on the overall performance of the semiconductor sector, and investors should closely monitor tomorrow’s opening acceptance and changes in trading volume. The current valuation level is divorced from fundamentals, so it is not recommended for medium-to-long-term investors to chase the rally, while short-term traders can participate with a small position but must strictly implement stop-profit and stop-loss rules.