Analysis of the Drivers and Sustainability of the Strong Rise of Sinnet (300593)

Sinnet (300593) rose 20% on December 24, 2025, performing strongly and entering the tushare strong stock pool. Its rise is mainly driven by two factors: 1) On December 18, the company announced that the secondary power product series (including bus converters, high-voltage modules, etc.) co-developed with ADI has entered the small-batch stage [1], bringing expectations for future revenue growth; 2) The company belongs to recently popular market concept sectors such as satellite internet, 5G, and domestic chips [2], and the heat of these concepts has boosted capital inflows.

Technically, the stock has risen 139.24% in the past 6 months and 179.74% YTD [0]. Today’s trading volume is 63.23M, far higher than the average volume of 32.50M [0], indicating strong market sentiment. Technical indicators: MACD shows a golden cross (bullish), KDJ indicator is also bullish, but RSI indicates overbought risk [0]. The support level is $26.46, today’s closing price of $30.24 is the current resistance level, and the next target level is $32.30 [0].

Fundamentally, the company’s financial performance is weak: ROE in the past year is -18.78%, net profit margin is -38.77% [0], P/B ratio of 6.84x is higher than the industry average [0]. The current rise is more based on concept speculation rather than fundamental support.

1. The rise is mainly driven by event-driven factors and concept speculation: Although the small-batch production announcement is positive, it has not yet formed scaled revenue. The heat of concept sectors is the main driver of short-term gains, not fundamental improvement.
2. Divergence between technical and fundamental aspects: Technical indicators show short-term strength, but negative profit indicators and high valuation indicate that the stock price lacks long-term fundamental support. Be alert to pullbacks after market sentiment cools down.
3. Increased attention from institutions and media: NetEase Finance reported it as a hot concept stock, and public funds like ChinaAMC Military Industry Safety Hybrid A hold heavy positions [2], but institutional participation does not change its weak fundamental status.

: ① Overvaluation: P/B ratio is higher than the industry average, with valuation correction pressure [0]; ② Overbought risk: RSI indicator shows overbought, and the stock price may face pullbacks in the short term [0]; ③ Fundamental risk: Negative ROE and net profit margin indicate insufficient profitability, and sustained rise lacks performance support [0].
: The secondary power products have entered the small-batch stage; if mass production proceeds smoothly and contributes to revenue in the future, it may provide an opportunity for fundamental improvement [1].

Sinnet (300593)'s short-term strong rise is mainly driven by product announcements and concept sector heat. Technical performance is strong but there is overbought risk; fundamentals are weak and valuation is high. The sustainability of the current rise is questionable. Need to pay attention to product mass production progress and concept sector heat changes, while being alert to valuation correction and fundamental risks.