Analysis of the Strong Performance of Lokai Co., Ltd. (603829): Driving Factors and Risk Assessment

Lokai Co., Ltd. (603829) has performed strongly recently, hitting consecutive daily limit-ups on November 18 and 21. The closing price on November 21 reached 25.94 yuan, a new all-time high [0][8]. The driving factors include:

1. Policy Dividends
   : The smart grid and power distribution equipment sector it belongs to is supported by policies for new power system construction, with the sector index rising 51.14% cumulatively by 2025 [0][9];
2. Fundamental Support
   : Revenue in the first three quarters of 2025 was 1.675 billion yuan, a year-on-year increase of 9.6%, with stable performance [0];
3. Capital Inflows
   : On November 21, the main capital net purchase was 48.1766 million yuan, accounting for 35.49% of the turnover, with high institutional attention [5];
4. Capital Optimization
   : The convertible bond “Lokai Convertible Bond” has been redeemed and delisted, with 403 million yuan converted into shares to enhance capital strength [1].

• Resonance of Policy and Fundamentals
  : The company mainly engages in medium and low-voltage power distribution equipment, which meets the needs of new power systems. Policy dividends combined with performance growth form dual support [0][9];
• Capital and Event Driven
  : Convertible bond redemption eliminates dilution concerns, while large institutional purchases strengthen market confidence [1][5];
• Sector Linkage Effect
  : The overall prosperity of the power equipment industry has increased, driving up the valuation of individual stocks [0][9].

1. Short-term Valuation Pressure
   : After the stock price hits a new all-time high, there is a short-term correction risk [0];
2. Sector Volatility Risk
   : If policy support is less than expected, the sector may adjust [9];

1. Long-term Growth Space
   : With the continuous advancement of new power system construction, the company, as a power distribution equipment supplier, is expected to benefit [9];
2. Capital Advantage
   : After the conversion of convertible bonds, the company’s capital structure is optimized, which is conducive to future expansion [1].

The recent strong performance of Lokai Co., Ltd. is driven by multiple factors including policy, fundamentals, capital, and events. Although there is short-term valuation pressure, its long-term growth logic is still consistent with the direction of industry policies. Investors need to pay attention to sector policy dynamics and the company’s subsequent performance [0][9].