Behind Fenglong Co., Ltd. (002931.SZ)'s 18 Consecutive Limit-Ups: Valuation Bubble Driven by UBTECH's Expected Takeover, Heavy Volume Signals Mounting Risks

Fenglong Co., Ltd. (002931.SZ) made it to the market’s hot list on January 23, 2026, having recorded 18 consecutive limit-ups. Its share price surged from around RMB 17 before the suspension to RMB 99.53, representing an increase of over 400%. The core driver of this extreme price movement is the expectation of a major asset restructuring where Hong Kong-listed UBTECH (09880.HK) plans to take control of Fenglong Co., Ltd. via “agreement transfer + tender offer”[1][2][3]. As Hong Kong’s “first humanoid robot stock”, UBTECH’s planned takeover of Fenglong Co., Ltd. has been interpreted by the market as a historic opportunity for the A-share market to welcome its first humanoid robot complete machine enterprise, triggering frenetic chasing by hot money and retail investors.

Looking at the transaction timeline, on December 24, 2025, the controlling shareholder and actual controller of Fenglong Co., Ltd. signed a share transfer agreement with UBTECH, marking the official launch of this major event[4]. Under the agreement, UBTECH has committed to maintaining its status as the controlling shareholder for 60 months after the share transfer, a long-term commitment that has fueled market imagination. However, it has also explicitly promised no plans or arrangements for backdoor listing via the listed company within the next 36 months[2]. This key information clearly deviates from the market’s “backdoor listing” expectation, posing a significant risk of expectation mismatch.

The share price performance of Fenglong Co., Ltd. shows typical speculative characteristics. Over 20 trading days from December 25, 2025 to January 23, 2026, the company’s share price started at RMB 17 and recorded 18 consecutive limit-ups, with a monthly increase of 405.74% and a yearly increase of as high as 495.28%[4]. This trend is extremely rare in the A-share market, fully reflecting the extreme exuberance of market sentiment.

However, a highly cautionary signal emerged on January 23, 2026: the intraday trading volume surged sharply to RMB 3.788 billion in the morning session, while previously the stock’s trading volume had long hovered at a historic low of below RMB 100 million[4]. The emergence of such “record-breaking volume” marks a new phase in capital game. From a technical analysis perspective, a limit-up with surging volume usually occurs in two distinct scenarios: first, new capital takes over to sustain the rally; second, major capital unloads shares at high prices amid positive news. Given the stock’s extreme trend of 18 consecutive limit-ups, the latter scenario is significantly more likely, and investors need to guard against the technical risk of “record volume at the top”.

From a fundamental perspective, Fenglong Co., Ltd.'s current valuation level has seriously deviated from its actual operating performance. According to quantitative data from the Jinling Analysis Database[0], the company’s static P/E ratio stands at a staggering 3557x, while the average P/E ratio of its special equipment manufacturing industry is only 43x, representing an astonishing valuation divergence of 82 times. Meanwhile, the P/B ratio is also at a high level of 22.89x, a premium of over 4 times compared to the industry average of 4x. This valuation level indicates that the market has fully discounted the company’s growth expectations for the next several decades, and any news that falls short of expectations could trigger a sharp adjustment in the share price.

The company’s 2025 third quarterly report shows that although net profit attributable to shareholders increased by over 1700% year-on-year, this was mainly due to a low base effect, and the ROE (Return on Equity) was only 2.76%, indicating weak profitability[4]. The company’s main business is the R&D, production and sales of garden machinery parts, auto parts and hydraulic parts, which has limited correlation with the currently hyped “humanoid robot” concept in the market, and the business synergy effect remains to be verified.

In response to the abnormal share price fluctuations, Fenglong Co., Ltd. has issued consecutive risk warning announcements, clearly stating in multiple announcements that “the company’s share price has seriously deviated from its fundamentals, and there are risks of overheated market sentiment and irrational speculation”[1][2]. The company also warned that if the share price rises further abnormally in the future, it may apply to the Shenzhen Stock Exchange for another suspension for investigation[1][2]. The continuous attention of regulators and the risk of potential intervention constitute another layer of uncertainty, and investors need to closely follow exchange announcement developments.

The speculative case of Fenglong Co., Ltd. reveals several structural characteristics of the current A-share market. First, the “humanoid robot” concept has become an important trend in the capital market. As a representative enterprise in the Hong Kong stock market’s humanoid robot sector, UBTECH’s planned takeover of Fenglong Co., Ltd. has been assigned overly high market expectations, reflecting investors’ extreme pursuit of emerging technology concepts. Second, the stock lacks coverage by institutional research reports, with the main participating capital being hot money and retail investors, showing typical characteristics of “retail investor game” with obvious herd effect. Third, UBTECH’s explicit commitment of no restructuring plans within 36 months significantly deviates from the market’s “backdoor listing” expectation, and this information asymmetry may trigger sharp adjustments during subsequent expectation revisions.

From the perspective of capital game, during the 18 consecutive limit-ups of Fenglong Co., Ltd., the trading volume remained at an extremely low level of below RMB 100 million for a long time, indicating highly locked-in chips and obvious reluctance to sell among capital. However, the record-breaking trading volume of RMB 3.788 billion on January 23 shows that market divergence has suddenly intensified, with some profitable positions starting to cash out. This technical pattern of “record price with record volume” is often a typical signal of a short-term top, and investors should remain highly vigilant. Meanwhile, due to the lack of participation by institutional investors, the stock’s rally mainly relies on market sentiment and capital push, with weak fundamental support. Once sentiment reverses, the share price may fall rapidly.

Despite significant risk factors, this event also contains several notable opportunities. For long-term investors, the business transformation and industrial integration that may be brought about by UBTECH’s takeover are worthy of follow-up attention, and UBTECH’s commitment to no share reduction within 60 months provides a guarantee for the stability of the company’s control. Meanwhile, this case provides a typical sample for studying speculative patterns in the A-share market, which has reference value for understanding market sentiment cycles and capital behavior.

The risk-reward ratio at the current time point is heavily skewed towards risks. In the short term, the record volume on the day is a clear cautionary signal, and a short-term top may be forming; in the medium term, UBTECH’s commitment to no restructuring plans within 36 months means the “backdoor listing” expectation is unlikely to be realized in the short term, and pressure for valuation reversion persists. It is recommended that investors maintain a wait-and-see attitude and avoid participating in high-level speculation.

Fenglong Co., Ltd. (002931.SZ) became a market hot stock driven by the expectation of it becoming the “first humanoid robot stock” on the A-share market via UBTECH’s planned takeover, but this expectation is seriously disconnected from the company’s fundamentals. The company’s current P/E ratio is as high as 3557x, 82 times the industry average, indicating a significant valuation bubble. On January 23, 2026, a record trading volume of RMB 3.788 billion was recorded, marking intensified capital divergence after 18 consecutive limit-ups and possibly signaling the formation of a short-term top. UBTECH has committed to no restructuring plans within 36 months, which clearly deviates from the market’s “backdoor listing” expectation, and investors need to guard against the risk of expectation revision.

Comprehensive assessment shows that this stock is a highly speculative target with risks far outweighing returns. The company has issued multiple risk warnings, and regulators have also maintained continuous attention. For investors holding positions, it is recommended to set a trailing stop (e.g., if the price breaks below the 5-day moving average) and consider reducing positions in batches; for investors on the sidelines, it is recommended to avoid such high-risk targets and focus on high-quality industrial stocks with reasonable valuations.

[1] Sina Finance - Fenglong Co., Ltd.: If the share price rises further abnormally in the future, the company may apply for another suspension for investigation. https://finance.sina.com.cn/jjxw/2026-01-20/doc-inhhyfur6043558.shtml. Publication Date: January 20, 2026 20:48:50

[2] Eastmoney - Fenglong Co., Ltd.: If the company’s share price rises further abnormally in the future, the company may apply for another suspension for investigation. http://finance.eastmoney.com/a/202601203624927286.html. Publication Date: January 20, 2026

[3] National Business Daily - Fenglong Co., Ltd.'s 17 Consecutive Limit-Ups: Valuation Nears 800x in a Frenzy, Who is Betting Heavily on “Robot Backdoor Listing”. https://m.nbd.com.cn/articles/2026-01-22/4231642.html. Publication Date: January 22, 2026 22:22:29

[4] 10jqka Finance - “Fenglong’s 18 Consecutive Rallies”, 002931 Sees Record Volume. http://stock.10jqka.com.cn/20260123/c674257261.shtml. Publication Date: January 23, 2026 14:41:03