Analysis of the Strong Performance of Suzhou Keda (603660)

Suzhou Keda (603660) performed strongly and entered the strong stock pool on December 26, 2025 [user-provided information]. Its strong performance is mainly driven by technical breakthroughs, sector trends, and price momentum:

1. Technical Breakthrough
   : A MACD golden cross (short-term moving average crossing above the long-term moving average) formed on December 25, sending a buy signal, while the KDJ indicator showed a bullish trend [0].
2. Sector Trend
   : As a stock in the communication equipment sector, it benefited from the positive sentiment in the global communication equipment industry driven by AI and 5G technologies [1].
3. Price Momentum
   : It has risen 55.12% in the past 6 months and 67.58% year-to-date, forming strong price inertia [0].
4. Capital and Trading Volume
   : The trading volume on that day was 70.44 million shares, nearly 3 times the average volume, indicating a significant increase in market attention and participation [0].

1. Short-term Drivers Dominant
   : No specific company news or announcements driving the limit-up were found; the rise was mainly driven by technical signals and market sentiment, lacking substantial fundamental support.
2. Technical and Risk Coexistence
   : MACD golden cross and bullish KDJ indicate short-term positive sentiment, but the RSI indicator is in the overbought zone, posing a correction risk [0].
3. Fundamental and Valuation Contradiction
   : Despite the strong stock price performance, the company’s net profit is negative, with an ROE of -20.97% [0], and a P/B ratio of 7.18x, which is high. There is a divergence between fundamentals and stock price trends.

1. Weak Fundamentals
   : The company has poor profitability; net profit and ROE are both negative, and long-term sustainability is questionable [0].
2. Overvaluation
   : The P/B ratio is 7.18x, valuation is at a high level, and there is significant correction pressure [0].
3. Technical Overbought
   : The RSI indicator is in the overbought zone, increasing short-term volatility risk [0].
4. Sentiment-driven Risk
   : The rise lacks specific news support and is mainly driven by market sentiment; once sentiment reverses, the stock price may fall quickly.

1. Sector Dividend
   : The communication equipment industry benefits from AI and 5G development; if the sector continues to strengthen, it may provide short-term support for individual stocks [1].
2. Technical Breakthrough
   : If it can effectively break through the current resistance level of 11.06 yuan, the next target level could reach 11.51 yuan [0].

• Suzhou Keda (603660) hit the daily limit on December 26, closing at 11.06 yuan, with trading volume nearly tripling [0].
• Technical aspects: MACD golden cross and bullish KDJ indicate short-term positive sentiment, but the RSI indicator is in the overbought zone, posing a correction risk [0].
• Fundamentals: Net profit and ROE are negative, with a P/B ratio of 7.18x [0].
• Drivers: Technical breakthrough, positive sentiment in the communication equipment sector, price momentum [0][1].
• Risk points: Weak fundamentals, overvaluation, technical overbought, sentiment-driven [0].