Analysis of the Strong Rise of Kelong Co., Ltd. (300405): Hotspots in the Lithium Battery Industry Chain and Capacity Support

Kelong Co., Ltd. (300405) performed strongly on November 17, 2025, with a single-day increase of 16.92%, a closing price of 8.5 yuan, and a turnover rate of 40.63% [0]. Driving factors include the limit up of the main contract of lithium carbonate futures (up 9% to 95,200 yuan/ton, hitting a one-year high [5]) and the collective rise of the lithium battery sector (23 stocks rose by more than 10% [2]). As an electrolyte material supplier, the company disclosed an annual capacity of over 10,000 tons of ethylene carbonate (EC) for lithium battery electrolytes [6], which aligns with the expected growth in industry demand (lithium carbonate demand is expected to increase by 30% in 2026 [0]). In terms of capital flow, institutional investors net bought 8.3219 million yuan [3], and Zhongtai Securities Zhejiang Branch net bought 40.4936 million yuan [1], indicating attention from professional investors.

1. Significant Sector Linkage Effect
   : The rise in lithium carbonate prices has driven valuation recovery for upstream material companies, and Kelong Co., Ltd. has benefited from industry chain transmission [5];
2. Capacity Matches Demand Growth
   : The company’s annual EC capacity of 10,000 tons provides key raw materials for electrolyte production, and it is expected to benefit from the expansion of lithium battery demand [6];
3. High Market Sentiment
   : A high turnover rate of 40.63% reflects short-term capital activity, but attention needs to be paid to the risk of chip stability [7].

• Risks
  : Short-term fluctuations in lithium carbonate prices may affect sector sentiment, and there is pressure to take profits under high turnover rates [0];
• Opportunities
  : Long-term demand growth in the lithium battery industry chain brings performance flexibility to the company, and capacity release is expected to increase market share [0].

Kelong Co., Ltd.'s short-term performance is driven by sector hotspots, and long-term value needs to focus on capacity utilization and industry supply-demand changes. Investors should combine their own risk preferences to balance short-term momentum and long-term fundamental factors.