Analysis of Strong Performance and Sustainability Judgment of Ligong Guangke (300557)

1. Reasons for Strong Performance
   : The core driver is the collective surge in the controlled nuclear fusion concept sector. The trigger event was the news on December 18, 2025, that Trump Media & Technology Group (DJT) signed a $6 billion merger agreement with TAE Technologies, an Alphabet-supported nuclear fusion energy company [1][2][3][4]. Affected by this, the A-share controlled nuclear fusion index rose 2.89% on December 19 [2], and Ligong Guangke achieved a 20% daily limit. Dragon and Tiger List data showed that the stock received a net institutional purchase of 18.5356 million yuan on that day, with an overall net purchase of 87.6785 million yuan, indicating joint promotion by institutions and hot money [5].

2. Technical Support
   : On December 19, Ligong Guangke opened at $32.30, hit a high of $39.34, closed at $39.34, with an increase of 21.80%, and a trading volume of 21.25M, which was more than twice the average volume of the previous 5 days (about 10M) [0]. From December 20 to 24, the stock price adjusted slightly, touching a low of $36.16 and a high of $39.50, with trading volume remaining high (17.26M-27.02M) [0], and turnover rate reaching 17.82%-22.65% [5], indicating high market participation and a short-term bullish trend.

3. Fundamental Situation
   : Ligong Guangke currently has a market capitalization of $4.60B, a P/E ratio of 96.72x, and a P/B ratio of 4.57x [0], which are significantly higher than the industry average, indicating overvaluation. Moreover, nuclear fusion commercialization is still in the early stage, with great uncertainties in technological breakthroughs and policy support [4].

• Significant Concept Linkage Effect
  : Overseas events are quickly transmitted to related sectors in A-shares. Joint participation by institutions and hot money amplifies short-term gains, reflecting the market’s high sensitivity to emerging energy concepts.
• Misalignment Between Short-Term Popularity and Long-Term Support
  : High turnover and trading volume indicate high short-term market attention, but overvaluation and the early stage of nuclear fusion commercialization suggest a lack of sufficient long-term fundamental support.

• Risks
  : Overvaluation [0], high short-term profit-taking pressure; technological and policy risks related to nuclear fusion commercialization have not been eliminated [4]; excessive short-term stock price increases lead to higher volatility risks.
• Opportunities
  : The controlled nuclear fusion concept is still popular, and there may be short-term trading opportunities, but caution is needed.

Ligong Guangke hit a strong daily limit on December 19, 2025, due to the controlled nuclear fusion concept, with high participation from institutions and hot money. The technical side shows a short-term bullish trend, but it is overvalued and nuclear fusion commercialization is still in the early stage. Attention should be paid to the support level of $36.40 and resistance level of $39.34 [0].

The stock market involves risks; investment requires caution.