Analysis of Tunan Co., Ltd. (300855)'s Strong Near-Limit-Up Surge: Short-Term Rally Driven by Breakthrough in Domestic Gas Turbine Localization

This analysis is based on market data on January 19, 2026 and reports from Fupan Wang [1]. Tunan Co., Ltd. (300855) performed strongly on the day, with its stock price surging 17.08% near the limit-up, entering the strong stock pool. Turnover expanded significantly to 27.42 million shares, 3.74 times the historical average of 7.33 million shares, hitting a stage high record.

: The demonstration project of Aero Engine Corporation of China (AECC)'s “Taihang” series gas turbines has officially passed national acceptance, marking a major breakthrough in the industrialization of domestic gas turbines [1]. As a core target in the domestic gas turbine industry chain, Tunan Co., Ltd. is a supplier of high-temperature alloy materials for key components of gas turbines and aero-engines, holds military industry qualifications, and its products have been applied in batches in aero-engines and military-related fields [1]. In addition, the company’s automated production lines have been put into operation, and the expectation of capacity release resonates with the growth of industry demand [1].

From a multi-cycle perspective, Tunan Co., Ltd. shows an overall upward trend: a daily gain of +17.08%, a 5-day gain of +12.06%, a 1-month gain of +32.16%, a 3-month gain of +42.65%, a 6-month gain of +60.07%, and a 1-year gain of as high as 83.78%, entering the ranks of annual top-performing stocks. The current stock price is ¥39.20, close to the 52-week high of ¥40.18, hitting a record high.

Moving Average/Price Level	Value	Technical Significance
52-Week High	¥40.18	Touched and broken through today
Current Price	¥39.20	In the historical high range
20-Day Moving Average	¥33.47	Short-term support level
50-Day Moving Average	¥30.23	Medium-term trend line
200-Day Moving Average	¥26.40	Long-term trend line

Today’s trading volume of 27.42 million shares is 3.74 times the average of 7.33 million shares, indicating the entry of large capital and a sharp increase in market attention. A historical high trading volume usually means increased long-short divergence; if volume fails to remain elevated subsequently, the stock may face the risk of “high volume peaking with high price”.

Indicator	Value	Signal Interpretation
MACD	Golden Cross	🟢 Buy signal, uptrend to continue
KDJ	K:60.2, D:60.6, J:59.5	🔴 Near death cross, short-term adjustment pressure
RSI(14)	Overbought Zone	⚠️ Beware of short-term correction risks
Beta	-0.27	Slightly negatively correlated with the broader market trend

Technically, the stock currently shows the feature of

: the trend type is uptrend (UPTREND), with a trend score of 4.0/5.0. The key resistance level of ¥40.18 has been touched, the next target level is ¥42.07, and the important support level is ¥35.33. Overall, the technical side has sufficient momentum but obvious short-term overbought risks.

⚠️

: The 14-day RSI is in the overbought zone, with short-term correction demand
⚠️ : The three lines are near a death cross, and technical indicators show short-term weakness
⚠️ : Hit a stage high in trading volume; if volume fails to remain elevated, it may form a “high volume peaking with high price”

Indicator	Value	Industry Comparison
P/E (Price-to-Earnings Ratio)	115.29x	Significantly higher than the industry average
P/B (Price-to-Book Ratio)	7.87x	Relatively high level
P/S (Price-to-Sales Ratio)	14.95x	Relatively high level
ROE (Return on Equity)	6.71%	Below average

In terms of profitability indicators, the company’s net profit margin of 12.76% and operating profit margin of 12.72% are good; the current ratio of 2.84 indicates sound financial conditions, and the quick ratio of 1.51 shows acceptable short-term debt-paying ability. The latest free cash flow is ¥190 million, with a good cash flow position. The depreciation/capital expenditure ratio is relatively high, and there is room for profit improvement after investments gradually mature. The debt risk rating is low.

Reporting Period	EPS	Revenue	YoY/QoQ Change
Q3 2025	$0.08	$260.20M	Revenue up 46% QoQ
Q1 2025	$0.11	$285.75M	-
Q3 2024	$0.17	$348.23M	-

Notably, the company’s Q3 2025 net profit declined year-over-year, but revenue grew significantly, suggesting that the company may be in a capacity expansion period, with early-stage investments gradually converting into capacity release. There is a certain divergence between performance and stock price, and investors need to continue to pay attention to fundamental improvements.

1. Institutional Capital Inflow
   : The expanded trading volume indicates active position building by large capital
2. Sector Support
   : The military equipment sector continued to rise in the afternoon, with capital flooding into the aero-engine industry chain, forming sector linkage
3. Long-Term Policy Benefits
   : Dual benefits from domestic substitution and national defense modernization, with continuous policy support during the 14th Five-Year Plan period
4. Capacity Release Expectation
   : After the automated production lines are put into operation, capacity release resonates with demand growth

1. Overstretched Valuation
   : 115x P/E significantly discounts future growth
2. Short-Term Overbought
   : Technical indicators show obvious correction risks
3. Performance-Price Divergence
   : Net profit declined but stock price soared, providing limited fundamental support
4. Theme Volatility
   : The military sector is highly volatile, and concept speculation may fade quickly

Risk Type	Details	Risk Level
Valuation Risk	115x P/E is at a historical high; if performance falls short of expectations, there is a risk of valuation contraction	🔴 High
Correction Risk	Overbought RSI + KDJ death cross + historical high volume, high probability of technical adjustment	🔴 High
News Verification	Need to confirm the actual order contribution of the “Taihang” gas turbine project to the company	🟡 Medium
Sector Rotation	The military sector is highly volatile, and concept speculation may fade quickly	🟡 Medium
Performance Verification	Q3 net profit declined; fundamental improvement needs continuous verification	🟡 Medium

Evaluation Dimension	Rating	Explanation
Catalyst Sustainability	⭐⭐⭐	Domestic localization is a long-term theme, but short-term order verification is needed
Fundamental Support	⭐⭐	Performance declined, valuation is overstretched, support is limited
Technical Momentum	⭐⭐⭐⭐	Breakout pattern + volume expansion + bullish moving average arrangement
Capital Side	⭐⭐⭐⭐	Obvious inflow of large capital

: Tunan Co., Ltd.'s current rally is a with . The rally is mainly driven by speculation on the gas turbine domestic localization theme and technical breakout; without matching actual orders or performance follow-up, the stock may pull back after the news is digested.

Type	Price	Operational Significance
Strong Resistance	¥40.18	Today’s high; a breakout will open up upside space
First Support	¥37.00	Near today’s low
Important Support	¥35.33	20-day moving average + technical analysis support level
Strong Support	¥33.00	Beware of trend reversal if broken

The analysis reveals several notable risk factors: the current valuation is at a historical high, technical indicators show elevated short-term volatility risks, and market prices have already fully priced in some expectations. Investors should closely monitor changes in trading volume, sector linkage effects, and the company’s subsequent order announcements. Concept speculation is highly volatile, and investors should be cautious when chasing highs.