Analysis of the Reasons for Fengfan Co., Ltd. (601700) Limit-Up and Its Subsequent Trend

Fengfan Co., Ltd. (601700) hit the limit-up on December 29, 2025, with an increase of 10.00%. As an important supplier in China’s UHV transmission equipment manufacturing sector [0], the limit-up was mainly driven by three factors: First, the global UHV industry recovery expectation—HVDC technology demand is growing in the renewable energy transmission field, and large contracts from international enterprises and project construction in emerging markets indicate strong industry demand [1][2]; Second, the positive market sentiment brought by the year-end “Santa Claus rally” [3]; Third, the technical side shows bullish signals, with KDJ and MACD indicators being bullish [0]. On the limit-up day, the trading volume was 80.3 million shares, far higher than the average daily volume of 44.33 million shares, indicating increased capital attention [0].

1. Industry and Market Sentiment Resonance
   : The UHV industry recovery expectation resonates with the year-end seasonal rebound sentiment, becoming the core driver of the stock price rise
2. Technical Side Strengthens Upward Trend
   : The increased trading volume combined with bullish technical indicators has attracted technical traders to participate, further pushing up the stock price
3. Lack of Direct Company Catalysts
   : No direct positive announcements at the company level have been found so far; the rise relies more on industry expectations and market sentiment, so caution should be exercised regarding its sustainability

• Overvaluation: The TTM P/E ratio reaches 251.50 times, far higher than the industry average, with high valuation risk [0]
• Weak profitability: The net profit margin is only 1.02%, and ROE is 1.04%, with insufficient fundamental support [0]
• Volatility risk: The volatility over the past 20 trading days has reached 4.81%, and the stock price stability is poor [0]
• Sentiment-driven risk: Lack of clear company catalysts; the sustainability of the rise depends on market sentiment and industry expectations

• Industry demand growth: If UHV industry demand continues to release, the company as a domestic supplier will directly benefit
• Technical breakthrough opportunity: If the stock price breaks through the short-term resistance level of $6.29, it may open up further upward space [0]

The limit-up of Fengfan Co., Ltd. is the result of the combined effect of industry recovery expectations, market sentiment, and technical aspects. In the short term, attention should be paid to the performance of the $6.29 resistance level and the $5.34 support level [0]. Investors should comprehensively judge the subsequent trend based on the company’s fundamentals, actual industry demand, and changes in market sentiment, and pay attention to the risks brought by high valuation and weak profitability.