Analysis of Libet (605167) Strong Performance: Reasons, Support, and Sustainability

1. Drivers of Strong Performance and Market Interpretation
   : Libet recently entered the strong stock pool mainly due to market speculative hype around its “nuclear fusion concept stock” label [0]. Driven by this concept, the stock price rose by 20% within 3 trading days [0]. However, the company has publicly clarified that it has no nuclear fusion-related business, only engaging in the manufacturing and installation of nuclear power engineering equipment and modules through its subsidiaries. The revenue share of the nuclear power segment in 2024 was only 6.48% [0], so the correlation between concept speculation and the company’s actual business is extremely low.

2. Technical Indicators
   : On December 23, 2025, Libet’s stock price rose by 11.81% with a high trading volume of 55.5 million shares [0]; on December 24, it pulled back by 1.66% while maintaining an active trading volume of 44.26 million shares [0]. The short-term key resistance level is the recent high of 13.92 yuan [0], and the support range is between 11.50-12.65 yuan [0]. The violent fluctuations in price and trading volume reflect the ups and downs of market speculative sentiment.

3. Fundamental Support Evaluation
   : The company’s current valuation level is significantly higher than the industry average, with a price-to-earnings (P/E) ratio of 27.77 times (industry average 7.48 times) and a price-to-book (P/B) ratio of 3.04 times (industry average 0.58 times) [0]. In terms of profitability, the net profit in the third quarter of 2025 decreased by 19.69% year-on-year [0], and the fundamentals lack core momentum to sustain strong performance.

1. Short-term Nature of Concept Speculation
   : Libet’s strong performance is mainly dominated by concept speculation driven by market sentiment, lacking long-term support from actual business and fundamentals. After the company released the clarification announcement, market sentiment has shown signs of cooling (stock price pullback on December 24) [0], with high short-term speculative risks.

2. High Valuation and Profit Pressure
   : The valuation level is significantly higher than the industry average, coupled with continuous net profit decline [0], indicating that the current stock price has deviated from the company’s intrinsic value. If there is no substantial performance improvement or new catalysts in the future, there will be greater pressure for valuation regression.

• Risks
  : Valuation regression risk after the fade of concept speculation; fundamental mismatch risk between high valuation and declining profits; market risk of intensified short-term stock price fluctuations [0].
• Opportunities
  : Potential market growth space for nuclear power business (if the company can expand the scale of related businesses); short-term transactional opportunities from sustained market sentiment (need to be grasped cautiously).

Libet’s recent strong performance mainly stems from short-term speculative hype of the nuclear fusion concept, lacking long-term fundamental support. After the company clarified that it has no related core business, market sentiment has started to cool. Technical indicators show violent stock price fluctuations, and fundamentals have hidden concerns such as high valuation and declining profits. Investors should fully pay attention to the short-term nature of concept speculation and the actual state of fundamentals, and evaluate investment risks and opportunities cautiously.