In-depth Analysis of Shenjian Co., Ltd. Case: Identification and Prevention of Concept Hype Risks

According to brokerage data, Shenjian Co., Ltd. (002361.SZ) showed extreme price performance in December 2025:

• 8 consecutive limit-ups
  : The stock price started on December 18 and rose by
  111.59%
  cumulatively by December 29
• Monthly performance
  : The monthly increase in December reached
  122.58%
  (from 6.51 yuan to 14.49 yuan)[0]
• Valuation level
  : P/E (price-to-earnings ratio) was as high as
  396.40x
  , far exceeding the industry average[0]
• Market cap expansion
  : The current market cap reached
  13.78 billion yuan
  (as of December 29, 2025)

Figure: Shenjian Co., Ltd. stock price trend in December 2025, showing short-term surge pattern

The

revealed in the company’s announcements[1][2][3]:

Business Segment	Q3 2025 Revenue	Proportion of Total Revenue	Market Attention
Commercial Aerospace Applications	3.7124 million yuan	0.20%	Extremely high (core of hype)
Total Aerospace Business	139 million yuan	7.59%	Hyped along
Other Main Businesses	~1.695 billion yuan	92.41%	Ignored

:

• The “commercial aerospace concept” that the market is crazy about actually has revenue of only
  3.71 million yuan
  , accounting for
  0.20%
  of total revenue
• The company’s main business is chemical new materials, and the aerospace business accounts for only7.59%
• The stock price doubled in one month, but there were no major changes in fundamentals[1][2][3]

###3. Company’s Active Risk Reminder

Shenjian Co., Ltd. clearly reminded in the abnormal fluctuation announcement[2]:

“The revenue proportion of the company’s commercial aerospace application business is relatively small, please investors pay attention to investment risks.”

##2. Typical Identification Signals of Concept Hype

Based on the analysis of Shenjian Co., Ltd. case,

:

###Signal1: Severe Mismatch Between Performance and Concept

:

• Check financial reports and calculate the revenue proportion of concept-related businesses
• Compare the actual contribution of concept businesses with peer companies

:

• Commercial aerospace revenue proportion
  0.20%
  vs stock price increase
  +122%
  [0][1]
• ROE only
  1.56%
  , net profit margin only
  1.38%
  (weak profitability)[0]

###Signal2: Extreme Valuation Indicators

:

• P/E>100x requires high vigilance
• P/B far exceeds historical range
• Market cap completely disproportionate to the scale of concept business

:

• P/E as high as
  396.4x
  , which is
  13x more than the industry average
  [0]
• Market cap of13.78 billion yuan vs commercial aerospace revenue of3.71 million yuan (ratio of
  3714:1
  )

###Signal3: Abnormal Stock Price Trend and Trading Volume

:

• Consecutive limit-ups (especially one-word limit-ups)
• Short-term increase>50% requires vigilance
• Abnormal surge in trading volume

:
-8 consecutive limit-ups with a cumulative increase of111.59%[1]

• Daily trading volume reached
  186 million shares
  in December, which is
  3.8x the average
  [0]

###Signal4: Frequent Company Clarifications

:

• Company issues “abnormal fluctuation announcement”
• Announcement reminds of “small business proportion”/“risk attention”
• Company executives or major shareholders reduce holdings

:

• Issued “Stock Trading Severe Abnormal Fluctuation Announcement”[2]
• Clearly clarified the business proportion and reminded of risks

###Signal5: Concept Irrelevant or Weakly Related to Main Business

:

• Main business is far from the hype concept
• Concept business is in R&D/test phase with no revenue
• Hints at the concept via vague statements like “strategic cooperation”/“framework agreement”

:

• Main business: chemical new materials
• Aerospace business:7.59% (mainly traditional aerospace parts)
• Commercial aerospace:0.20% (just started)[1]

###Signal6: Market Sentiment Cycle Enters “Climax Period”

According to market sentiment cycle theory[4], concept hype usually goes through:

Phase	Characteristics	Operation Strategy
Ice Point	Limit-ups<30, no main line	Defend/empty position
Initiation	3-4 limit-ups to test leading stocks	Small position (10-30%) trial
Fermentation	Clear main line, >50 limit-ups	Heavy position in main line (50-80%)
Climax	>80-100 limit-ups, leading stocks>7 limit-ups	Cash out/reduce position
Decline	More limit-downs, high limit-up pullback rate	Empty position and wait

: 8 consecutive limit-ups, market sentiment is in with the highest risk[4]

###Signal7: Dragon and Tiger List Dominated by Hot Money Seats

:

• Buy seats are well-known hot money seats
• Institutional seats net sell or zero buy
• Brokerage seats concentrated buy

(Note: Shenjian Co., Ltd.'s Dragon and Tiger List data needs further verification)

###Signal8: Stock Price Plunges After Concept Fades

:

• After the concept hype ends, the stock price usually retracts
  50%-80%
• Investors who chase highs at the top suffer heavy losses

##3. Practical Strategies for Investors to Prevent Concept Hype Risks

###Strategy1: Establish “Performance Verification Checklist”

Before participating in any concept investment,

the following checklist:

Check Item	Shenjian Co., Ltd.	Qualified Standard
Concept business revenue proportion	0.20% ❌	>20% ✓
Concept business revenue growth rate	N/A	>30% ✓
Whether the company issued performance commitment	No ✓	Yes ✓
Whether the concept business has confirmed orders	Unclear	Yes ✓
P/E valuation level	396x ❌	<30x ✓
Number of institutional research visits	N/A	>5 ✓
Whether there are insider holdings reduction	To be checked	No ✓

: Shenjian Co., Ltd. , should not participate in the hype

###Strategy2: Adopt “Three No-Touch” Discipline

1. No touch on performance
   : Do not touch if the concept business proportion<10%
2. No touch on valuation
   : Do not touch if P/E>100x (unless high growth is confirmed)
3. No touch on one-word limit-ups
   : Never chase highs after consecutive one-word limit-ups

###Strategy3: Set “Stop-Profit/Stop-Loss Iron Rules”

• Stop-profit
  : If the short-term increase>30%, cash out partially
• Stop-loss
  : Immediately sell if the concept is falsified or clarified
• Time stop-loss
  : Do not participate in concept hype for more than 1 month

:

• Start reducing position at the 3rd limit-up (increase of ~33%)
• Clear position at the5th limit-up
• Must clear position on the day the company issues the clarification announcement

###Strategy4: Follow “Regulatory Wind Direction”

[5]:

• Exchange issues inquiry letter/concern letter
• CSRC criticizes “rubbing hot spots”
• Media reports concept hype intensively
• Regulators state that they will severely crack down on “misleading statements”

Shenjian Co., Ltd. has been required by the exchange to issue an abnormal fluctuation announcement, and regulators have intervened[2]

###Strategy5: Use “Information Gap” Instead of “Sentiment Gap”

:

• Research the concept industry chain in advance and潜伏 in the initiation phase
• Study company financial reports and announcements to identify truly beneficial companies
• Participate in institutional research to obtain first-hand information

:

• Chase highs only after the concept has 8 consecutive limit-ups
• Make decisions based solely on media reports and forum discussions
• Blindly believe in “insider news”

###Strategy6: Position Management Principles

• Concept stock position
  : No more than
  10%
  of total funds
• Single concept stock
  : No more than
  30%
  of the concept stock position
• Diversified investment
  : Hold at least3-5 different concept stocks

##4. Nature of Concept Hype and Regulatory Trends

###1. Nature of Concept Hype

According to research[5], A-share concept hype is usually divided into two types:

Type	Characteristics	Duration	Risk Level
Policy-driven	Supported by policies, high possibility of performance landing	3-6 months	Medium
Pure concept hype	No performance support, purely emotional hype	1-4 weeks	Extremely high

Shenjian Co., Ltd. belongs to

with extremely high risk[5]

###2. Regulatory Trend: Severely Crack Down on “Fake Market Cap Management”

Since2024, regulators have continuously strengthened the crackdown on concept hype[5]:

• Misleading disclosure
  : Increase penalty intensity and fine amount
• Rubbing hot spots to cooperate with holdings reduction
  : Confiscate the profits from reduction and order repurchase
• Irregular interactive platform
  : Strict monitoring to prevent misleading investors
• Technology supervision
  : Strengthen technical identification methods and real-time monitoring

###3. Investor Response

• Stay away from pure concept stocks
  : Prioritize investing in leading companies with performance support
• Follow regulatory dynamics
  : Timely understand changes in regulatory policies
• Improve risk awareness
  : Recognize the nature of “zero-sum game” in concept hype

##5. Summary: Core Principles of Rational Investment

The Shenjian Co., Ltd. case reveals the typical pattern of concept hype in the A-share market:

[0][1][2]:

• Commercial aerospace revenue:3.71 million yuan (
  0.20%
  )
• Stock price increase:+122.58%
• P/E valuation:396.4x
• Actual profitability: ROE1.56%, net profit margin1.38%

:

1. Performance first
   : The concept must eventually be verified by performance, otherwise it is a bubble
2. Valuation discipline
   : No matter how good the concept is, it needs a reasonable valuation
3. Risk control
   : Set strict stop-profit and stop-loss disciplines
4. Long-termism
   : Focus on fundamental research and reject short-term temptations
5. Respect the market
   : Recognize the high-risk nature of concept hype

:
For stocks like Shenjian Co., Ltd. where the concept seriously deviates from fundamentals, . The real investment opportunities come from in-depth research of the company and rational judgment of valuation, rather than blind pursuit of market hot spots.

---

[0] Jinling API Data - Shenjian Co., Ltd. (002361.SZ) stock price, financial data, company profile

[1] Daily Economic News - “8 consecutive limit-ups Shenjian Co., Ltd.: The revenue proportion of commercial aerospace application business is small” (https://www.nbd.com.cn/articles/2025-12-29/4200267.html)

[2] V View Financial Report - “8 consecutive limit-ups Shenjian Co., Ltd.: The revenue proportion of commercial aerospace application business is small” (https://www.jwview.com/jingwei/html/12-29/651702.shtml)

[3] Eastmoney.com - “8 consecutive limit-ups Shenjian Co., Ltd.: The revenue proportion of commercial aerospace application business is small” (http://finance.eastmoney.com/a/202512293604624925.html)

[4] CSDN Blog - “Exploration of investment and operation based on sentiment cycle theory in A-share quantitative investment” (https://blog.csdn.net/yuntongliangda/article/details/150941371)

[5] China Listed Companies Association - “A-share listed company market cap management and policy recommendations” (http://www.isc.com.cn/tbyj/tzz/tzzd25j_72983_1/202505/P020250519503397585934.pdf)