Dongbai Group (600693.SH) Popularity Reasons and Risk Analysis

Dongbai Group (600693.SH) is a company in the department store segment of the consumer cyclical industry [1]. The core reason for this stock’s popularity is

• Price performance: It hit the daily limit (+10.00%) on December 24, with a 5-day gain of 27.83%, 1-month gain of 155.97%, and full-year gain of 178.57%. The current price (21.45 yuan) has broken through the 52-week historical high, rising more than 500% from the lowest price of the year [1].
• Volume-price characteristics: Trading volume on December 24 reached 2.2135 million lots, far exceeding the average volume (985,700 lots), indicating active trading. During the continuous rally period (Dec 11-24), there were 8 up days and 2 down days, showing a significant upward trend [1].
• Market sentiment: Technical indicators show that the short-term RSI is overbought (above 80), but upside momentum remains strong. Investor sentiment is mainly driven by short-term speculative trading and herding behavior, lacking fundamental support [1].

1. Specialty of driving logic
   : Unlike most popular stocks, Dongbai Group’s popularity is entirely dominated by price momentum effects, with no clear fundamental catalysts such as performance growth, policy benefits, or major events [1].
2. Severe divergence between valuation and fundamentals
   : The current P/E ratio is 429.00x, far higher than the industry average; 2025 Q3 EPS is only 0.02 yuan, ROE is 1.30%, indicating extremely weak profitability; the current ratio (0.62) and quick ratio (0.16) show obvious liquidity pressure [1].
3. Warning from overbought conditions and abnormal volume
   : The simultaneous occurrence of short-term technical overbought conditions and abnormal volume expansion—historically, such market conditions are prone to trigger sharp corrections, so investors need to be alert to the risk of momentum reversal [1].

• Fundamental risks
  : Overvaluation (P/E 429), weak profitability, high liquidity pressure [1].
• Market risks
  : Price rises without fundamental support are prone to momentum reversal, and concentrated trading by short-term speculators may exacerbate volatility [1].

No clear long-term investment opportunities are observed currently; the price rise is mainly driven by short-term speculation.

Dongbai Group has become a popular stock due to price upside momentum, but its rally lacks fundamental support—with overvaluation, weak profitability, high liquidity pressure, and significant short-term correction risks. Investors need to pay attention to technical overbought signals and volume changes, and carefully evaluate its investment value.