Analysis of Driving Factors and Market Risks Behind Rongji Software (002474.SZ)’s 61% Stock Price Surge

Rongji Software (002474.SZ) saw its stock price surge 61.06% between November 17 and 21, 2025, becoming the second-best performing stock of the week [1]. This increase was significantly higher than the market average, attracting widespread attention.

The company’s business involves AI applications and military industry concepts, coinciding with the market’s rising attention to these two sectors [1]. Demand for AI technology applications in government affairs and security fields has increased, while military informatization construction has also brought expectations of order growth for related enterprises.

In the first three quarters of 2025, Rongji Software achieved operating revenue of 487.9 million yuan and net profit of 99.7 million yuan, successfully turning from loss to profit [2]. This performance improvement has strengthened investor confidence and become an important support for the stock price rise.

China’s Xinchuang software market is estimated to reach 3 trillion yuan in 2025 [1], and policy support for areas such as digital government and information security continues to increase. Rongji Software’s main businesses (digital government, information security) directly benefit from this policy dividend [4].

The company has established a cooperative relationship with Huawei and participated in smart city construction [3], which has enhanced the company’s competitiveness and brand influence in the industry.

As a national strategy, the Xinchuang industry entered a period of rapid development in 2025. Smart city construction projects such as digital government and ‘one network unified management’ are continuously advancing [5], providing broad market space for enterprises like Rongji Software. At the same time, the integration trend of AI technology with traditional government affairs and security businesses is obvious, promoting the overall upgrading of the industry [1].

1. High-level Correction Risk
   : Recently, many high-level stocks have experienced corrections, such as Huasheng Lithium Electric falling over 33% weekly [1]. Rongji Software may face profit-taking pressure after a sharp rise.
2. Market Volatility Risk
   : The popularity of concept sectors has a certain periodicity, and if market sentiment shifts, the stock price may fluctuate greatly.
3. Performance Sustainability Risk
   : Although it turned from loss to profit in the first three quarters, attention needs to be paid to whether subsequent performance can continue to grow and the status of order fulfillment [2].

The surge in Rongji Software’s stock price is the result of multiple factors, including concept popularity, performance improvement, policy support, and strategic cooperation. While paying attention to opportunities, investors need to be alert to high-level correction risks and rationally evaluate the company’s long-term development potential.