Start Group (600734) Stock Price Volatility Analysis and Impact Assessment of Acquisition Matters

Start Group (600734), as an enterprise in the software and information technology service industry, has its main big data business accounting for 84.86% of total revenue [0]. Recently, its stock price has performed strongly; the core trigger is the major asset acquisition announcement disclosed by the company on November 5, 2025, planning to acquire 95% equity of Fujian Digital Industry Mingshang Technology Co., Ltd. [1]. This news triggered market expectations for business transformation, leading to a cumulative deviation of over 20% in stock price increases for two consecutive days on November 20-21, triggering an abnormal fluctuation announcement [1]. Financial data shows that the company’s earnings per share (EPS) in the first three quarters of 2025 was -0.05 yuan, in a state of loss [0]. In terms of valuation, the static price-to-earnings ratio (PE) is as high as 1780.03 times, and the price-to-book ratio (PB) is 32.42 times, significantly higher than the industry average [0].

This stock price volatility is mainly event-driven rather than due to fundamental improvements. Although the acquisition brings transformation expectations, the company has low institutional attention and has not entered the list of mainstream fund’s heavy holdings [0]. The industry it belongs to benefits from the development of AI computing power and intelligent computing centers, but the company’s current performance fails to reflect the industry’s dividends [0]. The abnormal fluctuation announcement shows that except for the disclosed acquisition, the company has no other undisclosed major information [1], further confirming that the stock price volatility stems from the acquisition news.

: 1) Valuation Risk: PE ratio is far above the industry average, with potential correction pressure [0]; 2) Acquisition Uncertainty: The transaction has not been completed yet, with the risk of failure [1]; 3) Weak Fundamentals: Sustained losses, lack of performance support [0]. : If the acquisition goes smoothly, it is expected to promote the company’s business transformation to emerging fields, aligning with industry development trends [0]. It should be noted that the short-term stock price increase may have partially reflected the acquisition expectations, and investors should carefully assess the risks [1].

Start Group’s recent strong stock price is mainly stimulated by the acquisition news, with insufficient fundamental support and high valuation. Investors need to focus on the acquisition progress, subsequent business integration effects, and performance improvement, while being alert to the risk of short-term market volatility [0][1].