Analysis of the Strong Performance of Blue Arrow Electronics (301348): Event-Driven Rally Driven by Acquisition Expectations

Blue Arrow Electronics (301348) entered the strong stock pool on January 21, 2026, with a closing price of RMB 35.87, a gain of 12.06%, and a turnover rate as high as 46.83%[1]. The core catalyst for this strong performance is the intent agreement for the company’s ongoing plan to acquire no less than 51% equity interest in Chengdu Xinyi Technology Co., Ltd.[2] This acquisition expectation drove the stock price to fluctuate abnormally for three consecutive trading days from January 13 to 15, with a cumulative gain deviation of 37.11%[2]. However, the company is currently in a loss-making state (dynamic price-earnings ratio of -243.64x), with relatively weak fundamental support, and the acquisition intent agreement is only a framework document, with significant uncertainty about whether it can be finally reached[2]. Considering factors such as continuous share reductions by shareholders and the company’s explicit warning of secondary market trading risks, it is recommended that investors carefully evaluate the risk-reward ratio.

The fundamental driving force behind Blue Arrow Electronics’ strong performance this time comes from a major asset acquisition plan. According to the Announcement on Abnormal Fluctuations in Stock Trading released by the company on January 16, 2026, the company is planning to acquire no less than 51% equity interest in Chengdu Xinyi Technology Co., Ltd. by cash to achieve control over it, and has currently signed an equity acquisition intent agreement[2]. This news triggered the abnormal fluctuation criteria of the Shenzhen Stock Exchange, resulting in a cumulative closing price gain deviation of 37.11% for the company over three consecutive trading days from January 13 to 15[2].

From a strategic perspective, if the acquisition is successfully completed, the integration of Chengdu Xinyi Technology is expected to form an industrial chain integration with Blue Arrow Electronics’ existing business, expand the company’s market share in the semiconductor sector, and may bring new technological capabilities and product lines[2]. However, investors should pay special attention that the company clearly emphasized in the announcement that the signed acquisition intent agreement is

, which is a preliminary intent reached between the company and the counterparty regarding the acquisition, and [2].

From the market data, Blue Arrow Electronics exhibited typical strong stock characteristics on January 20, 2026:

Indicator	Data	Market Implication
Closing Price	RMB 35.87	Daily K-line closed with a large positive candle
Gain	+12.06%	Led the semiconductor sector on the day
Turnover Rate	46.83%	Extremely active, fierce capital game
Turnover	RMB 2.557 billion	Good volume-price coordination
Highest Price	RMB 36.81	Failed to hit the daily limit
Lowest Price	RMB 31.52	Received effective support

The high turnover rate (46.83%) indicates extremely high market participation and fierce capital game, which usually occurs when major capital enters or exits, or when market sentiment is exuberant[1]. From the perspective of volume-price coordination, the stock price rose with an increase in trading volume, showing relatively solid upward momentum. The daily limit price on that day was RMB 38.61, and the closing price of RMB 35.87 was only about 7.6% away from the daily limit, indicating that bullish forces still dominated. According to Eastmoney data, Blue Arrow Electronics ranked 12th on the A-share gain list of Shanghai, Shenzhen, and Beijing Stock Exchanges on that day[1].

Blue Arrow Electronics was founded in the 1970s, with its predecessor being Foshan No.4 Radio Factory. It is a high-tech enterprise in Guangdong Province and one of the major semiconductor device production bases in South China[4]. The company currently produces 15 billion semiconductor devices annually, with a factory building area of 80,000 square meters and 1,429 employees[4].

In terms of main business, the company’s products cover semiconductor discrete devices (including bipolar transistors, MOSFETs, Schottky diodes, fast recovery diodes, thyristors, etc.), integrated circuits, LED products, and photovoltaic products[4]. Its downstream application fields are extensive, including household appliances, power supplies, IT digital products, communications, new energy, automotive electronics, instruments and meters, display screens, lighting, backlights, etc.[4].

However, financial data shows that the company is under certain pressure. The current dynamic P/E ratio is -243.64x, indicating that the company is in a loss-making state[1]. The price-to-book ratio of 5.78x indicates an overvalued valuation, with net assets per share of RMB 6.20[1]. The asset-liability ratio remains at a moderate level of 25.65%, with a total market capitalization of approximately RMB 8.609 billion and a tradable market capitalization of RMB 5.565 billion, belonging to small and mid-cap stocks with relatively high trading activity[1].

The market sentiment factors driving Blue Arrow Electronics’ recent strong performance mainly include three aspects: First, the imagination space brought by acquisition expectations; the market has always been sensitive to M&A and restructuring themes, and the commitment of 51% controlling stake gives investors relatively large expectation space; Second, the overall prosperity of the semiconductor industry is driven by policy support and the theme of domestic substitution; Third, as a small and mid-cap stock, the company has a tradable market capitalization of RMB 5.565 billion, with high trading activity and high elasticity[1].

However, there are also obvious negative factors in market sentiment. Shanghai Yinshengyu Enterprise Management Consulting Partnership, a shareholder holding more than 5% of the shares, reduced its holdings by 1.824 million shares from January 7 to 15, 2026, accounting for 0.76% of the total share capital, and its shareholding ratio dropped to 6% after the reduction[3]. The share reduction plan has not been completed yet, with a planned reduction of no more than 4.8 million shares, accounting for 2% of the total share capital[3]. In addition, in Article 6 of the abnormal fluctuation announcement, the company clearly reminded investors: “The company’s stock price has risen sharply in the short term, and all investors should pay attention to secondary market trading risks, make prudent decisions, and must not follow speculative thinking”[2].

From the analysis of driving factors, the strong performance of Blue Arrow Electronics this time is essentially an

. The expectation of acquiring Chengdu Xinyi Technology is the core catalyst for this sharp rise, which, combined with the overall sentiment of the semiconductor sector and the high elasticity of small and mid-cap stocks, jointly drove the rapid rise of the stock price. However, the current valuation level (dynamic P/E ratio of -243.64x, price-to-book ratio of 5.78x) lacks fundamental support, and it is a typical expectation-driven rise rather than a rise driven by fundamental improvement[1].

The market’s optimistic expectations for the acquisition have been largely reflected in the current stock price. From historical experience, many similar acquisition intentions have not been successfully implemented in the end, or major adjustments have occurred during the implementation process. The company clearly stated that the acquisition intent agreement is only a framework document, and there is uncertainty about whether the final transaction can be completed[2]. This means that if the subsequent acquisition progress falls short of expectations, the stock price may face significant pullback pressure.

The semiconductor discrete device industry as a whole benefits from domestic substitution policies and the rapid development of the new energy industry. As one of the major semiconductor device production bases in South China, Blue Arrow Electronics has certain regional competitive advantages[4]. If the acquisition of Chengdu Xinyi Technology is successful, it is expected to make breakthroughs in business synergy and technological upgrading. However, the company’s performance pressure cannot be reversed quickly in the short term, and it will take time for fundamental improvement.

Risk Type	Specific Description	Risk Level
Acquisition Uncertainty	The acquisition intent agreement is only a framework document, with significant uncertainty about whether it can be finally reached[2]	Extremely High
Valuation Deviation	Dynamic P/E ratio of -243x (loss-making), price-to-book ratio of 5.78x, valuation lacks fundamental support[1]	High
Shareholder Share Reduction	Shareholders holding more than 5% of shares continue to reduce their holdings, with a planned reduction of 2%[3]	Medium-High
Company Risk Warning	The company clearly warned “must not follow speculative thinking”[2]	High
Performance Pressure	Currently in a loss-making state, it will take time for fundamental improvement[1]	Medium

From a positive perspective, if the acquisition makes substantive progress (such as signing a formal agreement, completing due diligence, etc.), it is expected to bring business synergy effects and scale expansion opportunities to the company. The semiconductor industry continues to prosper, and the theme of domestic substitution provides a favorable macro environment for the industry’s development. As a regional leading enterprise in semiconductor devices, Blue Arrow Electronics has certain competitive advantages in the process of industry integration.

The current stock price has partially reflected the acquisition expectations, while the acquisition itself has significant uncertainty. Considering factors such as the company’s fundamental pressure, overvalued valuation, and continuous share reductions by shareholders,

. The company has clearly reminded investors to pay attention to secondary market trading risks, and it is recommended that investors make prudent decisions[2].

Blue Arrow Electronics (301348)’s strong performance this time is driven by the expectation of acquiring Chengdu Xinyi Technology. On January 20, 2026, it closed at RMB 35.87, with a gain of 12.06%, a turnover rate of 46.83%, and a turnover of RMB 2.557 billion[1]. If the acquisition is successful, it will achieve control over Chengdu Xinyi Technology (no less than 51% equity interest), which is expected to bring business synergy effects[2]. However, the company is currently in a loss-making state (dynamic P/E ratio of -243.64x), the acquisition intent agreement is only a framework document, and there is uncertainty about whether it can be finally reached[2]. In addition, shareholders holding more than 5% of shares continue to reduce their holdings (planned reduction of 2%), and the company has clearly warned of secondary market trading risks[2][3].

From a technical perspective, the stock price has strong upward momentum with good volume-price coordination, but the extremely high turnover rate also reflects the characteristic of fierce capital game. From a fundamental perspective, as a semiconductor device production base in South China, the company has a certain industry position, but short-term performance pressure restricts the sustainability of valuation expansion. In the future, key attention should be paid to the substantive progress of the acquisition, the disclosure time of the 2025 annual performance forecast, the implementation of the shareholder share reduction plan, and policy changes in the semiconductor industry[2][3].

---

[1] Market Data of Blue Arrow Electronics (301348) - Eastmoney, January 20, 2026

[2] Blue Arrow Electronics: Announcement on Abnormal Fluctuations in Stock Trading - Eastmoney, January 15, 2026

[3] Blue Arrow Electronics: Announcement on Share Reduction by Shareholders Holding More Than 5% of Shares Reaching an Integer Multiple of 1% - Eastmoney, January 19, 2026

[4] Company Profile of Blue Arrow Electronics - Eastmoney, January 20, 2026