Wolong Electric Drive (600580) Popular Reasons and Investment Analysis

Wolong Electric Drive (600580) made it to the hot list on December 22, 2025, with multiple core driving factors. From the price and volume perspective, the stock price rose by 6.96% that day, with a trading volume of 165 million shares, which was more than four times the average volume of the previous five days [0]. Technical analysis shows that MACD formed a golden cross, the KDJ indicator showed a bullish signal, and the stock price broke through the previous resistance level of 40.00 yuan, attracting the attention of technical traders [0]. In terms of fundamentals, the company’s revenue in the first three quarters was 11.967 billion yuan, a year-on-year increase of 28.26%; net profit was 819 million yuan, a year-on-year increase of 28.26%, showing strong performance [1]. At the industry level, the company focuses on green electric drive system solutions and layouts in high-growth areas such as data centers and new energy, which aligns with the global low-carbon transformation trend [1]. In addition, international institutions such as Nomura Asset and Fidelity have conducted research recently, increasing market attention [1].

1. Technical and Fundamental Resonance
   : The technical signals of price breaking through resistance and MACD golden cross, combined with strong performance growth, form the basis for market sentiment promotion.
2. Increased Institutional Attention
   : International institutional research reflects the attractiveness of the company’s global layout and green transformation strategy, and its long-term growth potential has been recognized.
3. Mismatch Between Valuation and Growth
   : The 70.22x P/E is much higher than the industry average, so caution is needed regarding valuation bubble risks.

• Valuation Risk
  : The current 70.22x P/E is significantly higher than the industry level, with an overvalued valuation [0].
• Technical Correction Risk
  : The stock price is close to the resistance level of 44.67 yuan; if it fails to break through, a correction may occur [0].
• Industry Competition
  : The electrical equipment industry is highly competitive, and continuous innovation is required to maintain a leading position [1].

• Downstream Market Demand Growth
  : Increased demand in data centers and new energy fields drives performance growth [1].
• Accelerated Global Layout
  : The internationalization strategy expands new markets, and the long-term development space is broad [1].

Wolong Electric Drive (600580) became popular due to price fluctuations, technical signals, and performance support. Strong fundamentals and institutional attention provide long-term support, but high valuation and technical resistance require caution. Investors should pay attention to price changes at the support level of 41.66 yuan and the resistance level of 44.67 yuan, and make a comprehensive judgment based on industry trends and the company’s innovation capabilities.