Analysis of Kelong Shares (300405) Strong Performance: Driving Factors, Technical Aspects and Sustainability Assessment

Kelong Shares (300405) recently entered the strong stock pool, mainly driven by its emerging industry layout, institutional capital inflows and market hot spot effects[0]. The company’s strategic layout in semiconductor auxiliary materials (such as diamond wire cutting lubricants, wetting agents) and new energy lithium battery electrolyte fields has attracted market attention[0]. Among them, the annual production capacity of ethylene carbonate for lithium battery electrolytes reaches 10,000 tons, and it has cooperated with Tianci Materials to develop related products[3].

From the technical perspective, the company’s stock price rose sharply by 16.92% on November 17, 2025, and was listed on the Dragon and Tiger List[1]. Dragon and Tiger List data shows that Zhongtai Securities Zhejiang Branch net bought 40.4936 million yuan, Dongfang Securities Wuxi Liangqing Road bought 28.9258 million yuan[1], and institutional seats net bought 8.322 million yuan[5]. The turnover rate on that day reached 40.63%, with a turnover of 720 million yuan, reflecting high market attention[0].

In terms of fundamentals, the company’s revenue in the first three quarters of 2025 was 405 million yuan, a year-on-year decrease of 13.57%, and the net profit attributable to parent company was -29.1192 million yuan[0]. The financial performance is poor, but the market values its position in the emerging industry chain more.

1. Resonance between Industry Layout and Market Hot Spots
   : The company has laid out in both semiconductor auxiliary materials and new energy fields, which aligns with the current market’s investment enthusiasm for the silicon carbide industry chain (focused by the National Integrated Circuit Industry Investment Fund) and new energy[2], becoming the core logic for the stock price rise.
2. Institutional Funds Dominate Short-term Market
   : Large institutional purchases (especially from hot money seats like Zhongtai Securities Zhejiang Branch) have driven the stock price to rise rapidly, but the high turnover rate also implies short-term volatility risks[1][5].
3. Deviation between Valuation and Performance
   : Despite poor financial data, the market has given the company a valuation premium for emerging industries, reflecting investors’ expectations for future performance improvement[0].

• Continuous Losses
  : The net profit in the first three quarters is negative. If the main business fails to improve, it may affect long-term valuation[0].
• Short-term Volatility Risk
  : High turnover rate (40.63%) and high participation of hot money are likely to trigger large fluctuations in stock prices[1][0]; on November 18, the main funds net sold 52.4205 million yuan[4], indicating that some funds have started to take profits.
• Concept Speculation Retreat
  : If market hot spots such as silicon carbide and new energy fade, the stock price may face correction pressure[2].

• Dividends from Emerging Industry Tracks
  : Semiconductor auxiliary materials and new energy are key support areas of the country, and the company’s layout is expected to benefit from industry growth[0][2].
• Deepening Customer Cooperation
  : Cooperation with leading enterprises like Tianci Materials may bring order growth and technical improvement[3].

Kelong Shares’ recent strong performance is mainly due to its layout in semiconductor and new energy fields, institutional capital inflows and market hot spot drivers. Although the current financial performance is poor, the market has high expectations for its future development. Investors need to pay attention to the progress of performance improvement, industry policy changes and the sustainability of market hot spots, and rationally evaluate investment risks and returns.