Analysis of the Limit-Up of Zhongchao Holding (002471): Theme Speculation Driven by Commercial Space Orders and Risk Warnings

Zhongchao Holding hit the daily limit on January 23, 2026, closing at RMB 8.56 with a 10.03% increase and a turnover of RMB 473 million, achieving a

trend [0][1]. The core catalyst for this limit-up comes from significant progress in its commercial space business: , the company’s indirectly controlled subsidiary, recently received another order for from a certain rocket unit. Its products have been supporting major aerospace entities such as and , deeply integrating into the commercial space industry chain [1]. In addition, the company plans to raise funds through private placement for the “Aero-Engines and Gas Turbines High-End Component Manufacturing Project”. Upon completion, the annual production capacity will cover the demand for high-temperature alloy precision castings for commercial space and gas turbines [1].

In addition to the core positive news from commercial space, the company also overlaps with several currently popular market concepts [1][3]:

Concept Sector	Correlation Analysis
Graphene Concept	The concept sector rallied today, and Zhongchao Holding directly benefited as a concept stock [3]
Robot Concept	Its business involves the industrial automation supporting field
Military Industry Concept	Qualified as an aerospace component supplier, it has entered the supply chain system of AECC [2]
Data Center Concept	Its wire and cable products can be used in data center infrastructure construction

The company operates under a

. Its core wire and cable business ranks among the top in the industry in terms of winning bids from State Grid, and serves central SOEs such as State Grid, China Southern Power Grid, and SPIC. Its products support national strategic projects such as the West-East Gas Pipeline and South-to-North Water Diversion Project [1][2].

From a technical indicator perspective, the current price is in a

[0]:

• Moving Average System
  : The 20-day moving average is RMB 7.69, 50-day moving average is RMB 5.89, and 200-day moving average is RMB 4.93. The current stock price is above all moving averages
• Key Price Levels
  : Resistance level at RMB 8.88 (recent high), support level at RMB 7.69 (20-day moving average), 52-week high at RMB 9.65
• Technical Signals
  : The KDJ indicator shows a bullish signal (K:32.8, D:30.0, J:38.5), MACD has no clear crossover signal, and RSI is in the normal range without overbought or oversold conditions [0]

Price data shows a +71.54% increase in the past month, +74.69% in the past 3 months, +80.21% in the past 6 months, and a staggering

increase in the past year [0].

This limit-up analysis reveals a major structural contradiction:

[0]. Despite the 233% surge in the company’s stock price over the past year, fundamental data shows that the company is still in a loss-making state: net profit margin of -0.73%, operating profit margin of -0.39%, return on equity of -2.28%, and the latest quarterly EPS is -0.01 RMB. The P/E ratio is -285.57 times (loss-making state), and the P/B ratio is 6.48 times, indicating that the valuation level is significantly detached from fundamental support [0].

This divergence reflects the typical

of the current A-share market — commercial space, as a strategic emerging industry, has received high attention from the capital market, and related concept stocks can obtain valuation premiums even if their performance has not yet materialized. Investors need to clearly recognize that the company’s commercial space business accounts for a small proportion of its revenue, and the current limit-up is more driven by market sentiment rather than fundamental improvement.

From market transaction data, this stock shows typical short-term speculation characteristics [1]:

• It has hit the daily limit 30 times in the past year, demonstrating extremely active stock liquidity
• The 2-consecutive limit-up has stimulated market speculation sentiment, with obvious scrambling for shares by short-term funds
• The turnover rate of 4.11% is at a normal to high level, indicating intense capital game
• The turnover of RMB 473 million has significantly increased compared to recent periods

1. Risk of Valuation Detachment from Fundamentals
   : The company is in a loss-making state, traditional valuation indicators such as P/E and P/B are invalid, and the stock price increase lacks performance support [0]
2. Uncertainty of Concept Implementation
   : The commercial space business contributes limited revenue, with the risk of theme speculation. The small business proportion may result in actual performance improvement lagging behind stock price performance
3. Uncertainty of Private Placement Project
   : The private placement fundraising project is still in the fundraising stage, with risks in approval and implementation. It will take time to complete construction and put into production
4. Risk of Pullback at High Levels
   : A large number of profit-taking positions have accumulated after consecutive limit-ups, creating pressure for profit-taking; the 52-week high of RMB 9.65 constitutes an important resistance level

1. Dividends from the Commercial Space Industry
   : National policies support the development of the commercial space industry. The company has the manufacturing capacity for large, complex thin-walled high-temperature alloy precision castings such as aero-engine turbine rear casings [2], with long-term growth potential
2. Support from Multiple Concepts
   : The superposition of multiple concepts such as graphene, robotics, military industry, and data center enhances the stock’s attention and liquidity
3. Qualification as a Supplier to Central SOEs
   : Its core wire and cable business serves central SOEs such as State Grid and China Southern Power Grid, ensuring business stability

Risk Type	Risk Level	Rating Explanation
Short-term Pullback Risk	Medium-High	Consecutive limit-up stocks have abundant profit-taking positions, facing resistance from previous highs technically
Valuation Risk	High	Stock price skyrocketed in a loss-making state, with negative P/E ratio
Theme Speculation Risk	Medium-High	Small business proportion, uncertainty in performance realization
Long-term Growth Risk	Medium-Low	Broad track for commercial space, strong policy support

This round of limit-up of Zhongchao Holding is driven by multiple factors. The

is the rocket component order obtained by Jiangsu Precision Casting, the company’s indirectly controlled subsidiary, which deeply integrates the company into the commercial space industry chain; the comes from several popular themes such as graphene, robotics, military industry, and data center; the provides investors with imagination space for future production capacity expansion [1][2][3].

However, investors should carefully evaluate the following core information:

[0].

The 233% increase in the stock price over the past year mainly reflects the market’s enthusiasm for the commercial space theme, rather than actual improvement in the company’s operating conditions. A large number of profit-taking positions have accumulated after consecutive limit-ups, and the risk of a pullback cannot be ignored.

From a trading perspective,

, and investors who participate need to set strict stop-loss rules. From a long-term perspective, if the company’s private placement project progresses smoothly and its commercial space business achieves volume growth, fundamental improvement may gradually digest the current high valuation. [1].

This report is compiled based on public market information, for informational reference only, and does not constitute investment advice. Investors should make independent judgments and invest rationally.