Analysis of Sciens (688480)'s Strong Performance: Drivers Behind the All-Time High and Sustainability Assessment

Sciens (688480) is an environmental protection enterprise listed on the STAR Market, with its main business covering the environmental protection industry and soil remediation sector, and it is located in the Hunan sector[1]. The stock performed strongly today and entered the strong stock pool, with specific trading data as follows: closing price of RMB 79.52, up RMB 9.64 or 13.80% from the previous trading day; intraday amplitude of 18.60%, showing sharp fluctuations; trading volume of 63,700 lots, transaction value of RMB 499 million; turnover rate of 6.69%, volume ratio of 1.95, indicating high trading activity[0][1]. From the technical perspective, the stock opened at RMB 69.00 and closed at RMB 79.52, forming a large bullish candlestick breakout pattern intraday and hitting an all-time high, becoming one of the 72 stocks that hit an all-time closing high on the day[1].

Sciens hit an all-time high in today’s closing price, and this breakthrough performance has become the direct catalyst for the sharp rise in the stock price[1]. An all-time high usually boosts bullish market sentiment, attracting trend investors and short-term capital to follow suit and buy, forming a positive cycle. At the same time, hitting a new high also means relatively light selling pressure above, providing certain technical support for the stock price to continue rising.

Recently, professional institutions have shown strong interest in the company, and research activities have been carried out frequently[1]. Specifically, the company received research from 8 institutions on January 6, 2026, 4 institutions on December 8, 2025, and 2 institutions on December 4, 2025. Intensive institutional research usually means that market attention to the company has increased. In-depth understanding by professional investors may bring potential capital inflows, and it also reflects the market’s concern about the company’s fundamentals and future development prospects.

The copper extractant business, one of the company’s core businesses, has shown rapid development, becoming a key factor supporting its long-term growth logic[2]. In terms of capacity expansion, Longli Chemical completed its capacity expansion project in May 2025, with its capacity sharply increasing from 3,400 tons/year to 7,000 tons/year, a more than 100% increase, laying a solid capacity foundation for subsequent business growth[2]. In terms of order performance, in the first half of 2025, orders from new customers accounted for more than 50%, orders from overseas customers (end users) accounted for more than 80%, and the total order volume increased by 39% year-on-year, showing strong market demand and remarkable results in overseas expansion[2]. In terms of capital operations, the company plans to issue convertible bonds of no more than RMB 565 million, and the raised funds will be used for the re-expansion project of mineral processing reagents and the construction project of 100,000 tons/year high-efficiency flotation reagents, reflecting the company’s strategic intention to continue to deepen its reagent business and expand market share[2].

Margin trading and short selling data show that market participation is at a high level. As of January 20, 2026, the company’s margin balance reached RMB 143 million, and the margin funds have fluctuated greatly recently, reflecting fierce games between bulls and bears[1]. Steady growth in margin balance usually means that leveraged capital is optimistic about the company’s prospects, but increased fluctuations also indicate that short-term risks are accumulating.

On November 26, 2025, 31.48 million restricted shares from the company’s initial public offering were unlocked and listed[1]. After about two months of digestion and chip exchange, the selling pressure brought by restricted share unlocking has been partially released, and the market’s absorption capacity has gradually increased, removing some resistance for this rally.

From the analysis of intraday price action, the stock shows typical strong breakout characteristics[0][1]. The 13.80% increase at close indicates strong buyer demand, driving the stock price to rise sharply. The intraday amplitude of 18.60% shows obvious games between bulls and bears, and the morning session may have experienced a fierce tug-of-war between the two sides, with bulls finally taking the upper hand. The turnover rate of 6.69% coupled with a volume ratio of 1.95 indicates active trading, high capital participation, and active entry of off-market capital to absorb shares. The large bullish candlestick from the opening price of RMB 69.00 to the closing price of RMB 79.52 shows a clear breakout signal.

Technical Indicator	Current Status	Market Implication
Price Trend	Hit an all-time high	In a strong bullish pattern, but need to be wary of profit-taking risks
Trading Volume	Rising with increased volume	Good coordination between volume and price, active buying
Turnover Rate	High level	Active trading, possible change of controlling shareholders or institutional position building
Intraday Amplitude	Sharp fluctuations	Fierce games between bulls and bears, coexistence of short-term risks and opportunities

From the perspective of support and resistance levels, the important price levels faced by the current stock include: the immediate resistance level above is today’s intraday high of RMB 82.00, followed by the psychological pressure level at the integer mark of RMB 85; the support levels below are RMB 75, RMB 70, and the previous trading day’s closing price of RMB 69.88[0]. If the stock price can effectively break through and stand firm above RMB 82, it is expected to challenge the RMB 85 level; if a pullback occurs, the first support may form around RMB 75.

According to the company’s disclosed financial data for the first three quarters of 2025, it shows the characteristic of ‘growing revenue but declining profits’ overall[2]. In terms of operating revenue, it reached RMB 677 million, an increase of 15.81% year-on-year, indicating that the company’s business scale is still expanding and its market share is steadily increasing. In terms of net profit attributable to shareholders, it reached RMB 74 million, a sharp decline of 48.32% year-on-year, mainly affected by the superposition of multiple factors. Non-recurring net profit attributable to shareholders reached RMB 72 million, a decrease of 10.78% year-on-year, reflecting marginal changes in the profitability of the main business.

The main reasons for the significant decline in net profit include the following[2]: First, the base effect. In the first half of 2024, the company generated approximately RMB 60 million in investment income from acquisitions, resulting in a high base in the same period of 2024; second, increased expenses. Sales expenses increased by RMB 5.28 million year-on-year, and R&D expenses increased by RMB 7.22 million year-on-year, reflecting the company’s continuous investment in market expansion and technological R&D; in addition, credit impairment increased by RMB 8.22 million year-on-year, mainly due to the increase in provision for accounts receivable caused by longer credit periods for overseas business.

Despite the pressure on net profit, the company’s business structure continues to optimize, with prominent core highlights[2]. The reagent business has shown rapid development, with orders for copper extractant business increasing by 39% and overseas orders accounting for more than 80%, showing strong market competitiveness and remarkable results in international expansion. In terms of capacity expansion, Longli Chemical’s capacity expansion to 7,000 tons/year has been completed, providing sufficient capacity guarantee for subsequent business growth. In terms of refinancing plan, if the RMB 565 million convertible bonds are successfully issued, it will provide financial support for the re-expansion project of mineral processing reagents and the construction project of 100,000 tons/year high-efficiency flotation reagents, further consolidating the company’s leading position in the industry.

From the valuation perspective, the company’s current dynamic P/E ratio is about 76.79x, and P/B ratio is about 6.93x[1]. This valuation level is relatively high in the environmental protection sector of the STAR Market, reflecting the market’s high expectations for the company’s future growth. However, the relatively high valuation also puts pressure on short-term performance. If the company’s performance fails to meet market expectations effectively, it may face the risk of valuation regression.

The current overall market sentiment is positive, with main supporting factors including[0][1]: increased capital attention, high turnover rate and large transaction value indicate active participation of off-market capital; rising enthusiasm for institutional research, recent batches of institutional research show increased attention from professional investors; clear business growth logic, expansion of reagent business and order growth provide basis for long-term optimism; obvious all-time high effect, the stock price hitting an all-time high attracts trend investors to follow suit and buy.

At the same time, some factors still require caution[2]: non-recurring net profit declined year-on-year, and the substantial improvement of fundamentals still needs time to be verified; relatively high valuation puts pressure on short-term performance, and a 76x PE needs sustained high performance growth to support it; the circulating share capital increased after restricted share unlocking, and potential selling pressure may continue to exist.

The current dynamic P/E ratio of 76x is at a historically relatively high level. If the company’s subsequent performance fails to meet market expectations effectively, it may face valuation regression pressure[1]. The STAR Market has high overall volatility, and the valuation pullback may be relatively sharp.

The intraday amplitude of 18.60% and turnover rate of 6.69% show that short-term games are quite fierce[1]. For investors with low risk tolerance, such sharp fluctuations may bring large fluctuations in account net value, requiring proper risk management.

Whether the downward trend of net profit can be reversed still needs to be verified by the 2024 annual report and the first quarter report of 2025[2]. During the performance gap period, the deviation between market expectations and actual data may trigger sharp fluctuations in the stock price.

After the stock price hits a new high, it often faces profit-taking pressure. Especially when the short-term increase is large, some short-term capital may choose to take profits and exit, forming periodic pressure on the stock price.

. Today’s sharp rise is mainly driven by the sentiment of hitting an all-time high and expectations from institutional research, with technicals showing a volume breakout pattern. Considering positive factors such as good coordination between volume and price, stable closing despite large amplitude, and being in the strong stock pool, there may still be room for inertia upward movement in the short term. However, it is necessary to closely monitor whether trading volume can remain at a high level and the technical pressure around RMB 82.

. Medium-term sustainability depends on multiple factors: performance verification from the 2024 annual report and the first quarter report of 2025 will determine the market’s re-evaluation of the company’s fundamentals; the progress of convertible bond issuance affects subsequent capacity expansion plans; order status and capacity utilization of the reagent business reflect actual operating conditions; changes in overall market risk appetite will affect the overall valuation level of the STAR Market.

Investors should focus on the following indicators: whether trading volume can maintain high turnover; whether the stock price can effectively stabilize in the range of RMB 75-80; whether there will be subsequent institutional buying or positive feedback from research; performance forecasts or performance express reports.

Risk Appetite	Operation Suggestion
Aggressive	May participate with a light position, set the stop-loss below RMB 70
Conservative	Wait for a pullback confirmation (around RMB 75) before considering buying on dips
Wait-and-See	May first add to the watchlist, and continuously track changes in trading volume and fundamental dynamics

The strong performance of Sciens (688480) today is the result of

. Direct catalysts include the stock price hitting an all-time high boosting market sentiment, and increased attention brought by recent intensive institutional research; in-depth supporting factors include growth potential shown by rapid expansion of reagent business, growth foundation laid by completed capacity expansion, and capital support reflected by good coordination between volume and price. It is currently in the stage of ‘sentiment-driven + expectation game’, and fundamental improvement is still in progress but not yet fully reflected. Short-term momentum is strong, but relatively high valuation (76x PE) and performance pressure are potential risk points. Investors should focus on the sustainability of trading volume, whether the stock price can effectively break through key technical resistance levels, and subsequent performance verification, and participate cautiously.