Analysis Report on the Strong Performance of Qiangrui Technology (301128)

The core driver for Qiangrui Technology (301128) entering the strong stock pool is the

[1][2][3][4]. The plan grants a total of 3 million shares of equity (accounting for 2.90% of total share capital) to 152 core employees. The exercise price of stock options is ¥92.05 per share, and the grant price of restricted stocks is ¥46.03 per share. It sets an aggressive performance target of 80% net profit growth by 2028 compared to 2025, conveying the company’s strong confidence in future development.

From a technical perspective, the stock price rose from $94.15 to $107.75 between December 23 and 25, with a cumulative increase of 14.44%. The trading volume on the 25th was 12.53M, which was 3.1 times the average volume of 4.01M [0]. The KDJ indicator shows a bullish signal, with a resistance level of $114.14, a support level of $88.89, and a next target price of $119.42 [0].

Fundamentally, the company’s current market capitalization is $1.115 billion, and it belongs to the Industrial-Machinery sector [0]. Although the latest free cash flow is negative, the performance target in the incentive plan indicates management’s confidence in future profit growth.

1. Event-driven Short-term Strength
   : As a typical event-driven factor, the equity incentive plan directly推动了股价上涨和成交量放大, indicating the market’s optimistic expectations for the company’s long-term growth prospects.
2. Technical and Sentiment Resonance
   : Price increases and volume expansion form a resonance, enhancing market bullish confidence, but the RSI indicator shows overbought risks, requiring attention to short-term correction pressure [0].
3. Signal Significance of the Incentive Plan
   : The aggressive performance target not only incentivizes core employees but also conveys clear confidence from the company’s management in business development to the market, potentially attracting long-term investor attention.

• Risks
  : The current P/E ratio is 83.11x, far higher than the industry average, posing an overvaluation risk [0]; the 80% net profit growth target is aggressive, and failure to meet it may trigger market disappointment; the technical side is overbought, and a short-term correction may occur [0].
• Opportunities
  : The incentive plan binds the interests of core employees, which is expected to drive the company’s performance growth; if it breaks through the $114.14 resistance level, it may open up further upward space [0].
• Priority
  : Short-term attention should be paid to overbought correction risks, while long-term attention should be paid to the implementation of the incentive plan and the progress of performance growth.

Qiangrui Technology’s strong performance is mainly driven by the equity incentive plan. The technical side shows an upward trend but has overbought risks, with high valuation and aggressive performance targets. Investors should pay attention to the breakthrough of the $114.14 resistance level and $88.89 support level, and make comprehensive judgments based on the company’s future cash flow improvement and the implementation progress of the incentive plan.