Analysis of the Drivers and Sustainability of the Strong Performance of Nanguang Group (001360)

The state issued the “Machinery Industry Steady Growth Work Plan (2025—2026)”, which clearly sets an industry revenue target of 10 trillion yuan by 2026 and supports innovation in areas such as industrial mother machines and intelligent equipment. Combined with the trillion-yuan special treasury bonds to boost infrastructure and large-scale equipment renewal, the machinery industry’s prosperity has rebounded: from January to October, excavator sales increased by 17% year-on-year, and construction machinery exports reached 48.57 billion US dollars, an increase of 12% year-on-year [1]. As a mining electromechanical equipment and environmental protection equipment enterprise, Nanguang Group directly benefits from the industry recovery.

• Performance Improvement and Strategic Transformation
  : In the third quarter of 2025, revenue was 234 million yuan, up 26.35% year-on-year; net profit attributable to parent company was 15.2005 million yuan, up 21.55% year-on-year [2]. The company actively abandoned low-margin EPC projects and focused on high-margin equipment sales and after-sales service. In the first three quarters of 2025, after-sales service business increased by 27.03% year-on-year, and the metal mining sector increased by 25.23% year-on-year [2].
• Overseas Expansion
  : Overseas contracts in the first three quarters increased by 38.71% year-on-year, becoming a new growth engine [2].

Consecutive daily limit-ups on December 8 and 10; closing price on December 10 was 22.77 yuan, with an increase of 22.31% [5]; the trading volume on that day was 484 million yuan, with a turnover rate of 29.49%, far higher than the average, indicating active market trading [4].

1. Policy Dividends as Core Macro Driver
   : Steady growth policies in the machinery industry and increased infrastructure investment lay the foundation for the sector’s recovery. As a company in a niche segment, Nanguang Group directly benefits from the increase in industry demand.
2. Strategic Transformation Enhances Long-term Profit Potential
   : Abandoning low-margin businesses and shifting to high-margin segments, although there are short-term performance fluctuations, optimizes the business structure and enhances long-term competitiveness.
3. Market Sentiment and Sector Linkage
   : The Construction Machinery ETF (560280) rose by 2.63% on December 5, driving up related individual stocks. The strong performance of Nanguang Group is closely related to the overall warming of the sector [1].

• Industry Recovery
  : Driven by policies, demand in the machinery industry continues to be released, and the company, as a niche segment enterprise, is expected to maintain growth.
• Overseas Market
  : High growth in overseas contracts provides new momentum for the company’s performance.

• Performance Fluctuations
  : Net profit attributable to parent company in the first three quarters of 2025 decreased by 12.29% year-on-year, with the risk of revenue growth without profit growth [2].
• Accounts Receivable Risk
  : Accounts receivable accounted for 888.4% of the net profit attributable to parent company in the latest annual report, indicating a high risk of bad debts [3].
• Executive Share Reduction
  : Some executives have completed their share reduction plans; on December 8, executive Gong Youliang reduced 232,500 shares, which may affect market sentiment [6][7].
• Short-term Volatility
  : After consecutive daily limit-ups, if trading volume shrinks or prices pull back, it is necessary to be alert to the risk of a short-term top.

The strong performance of Nanguang Group is jointly driven by industry policies, company strategy, and market sentiment. Although there are short-term performance fluctuations and bad debt risks, the industry recovery trend and overseas expansion provide support for long-term growth. It is necessary to continue to pay attention to the effect of policy implementation, the progress of the company’s transformation, and changes in market sentiment to judge the sustainability of its performance.