Analysis of Strong Performance and Sustainability Judgment for Tianchuang Fashion (603608)

Tianchuang Fashion (603608)'s recent strong performance is driven by the core catalyst of

: On December 26, 2025, the company announced that the controlling shareholder and the second largest shareholder intend to transfer a total of 19.95% of their shares to Anhui Xianrui Investment, and Hu Xiangen will become the new actual controller [3][4][5]. This news triggered positive market expectations; after resuming trading on December 29, the stock saw consecutive limit-ups on December 30 and 31, with a cumulative increase of 42.07% from December 4 to 31 [0].

Price and volume data show extremely high market participation: After resuming trading, the volume on December 29 was 94.61 million shares and on December 30 was 69.76 million shares, both far higher than the 20-day average volume of 16.97 million shares [0]. In terms of technical indicators, although KDJ (K:93.8, D:90.3, J:100.9) and RSI are in the overbought zone [0], the short-term limit-up trend still reflects strong market sentiment.

Fundamentally, the company has been in a loss state in the first three quarters of 2023-2025 (2025 Q1-Q3 net profit attributable to parent company: -5.23 million yuan) [3][4], with a current P/E of -61.13x and P/B of 3.73x, indicating high valuation [0]. Although this control change brings expectations of strategic adjustments, it has not yet been completed and still requires compliance confirmation from relevant authorities, leading to uncertainties [5].

1. The market effect of the control change event is significant; consecutive limit-ups indicate investors’ recognition of the new controlling shareholder, but fundamentals have not improved synchronously, so attention should be paid to the gap between expectations and reality.
2. The significant increase in volume (far higher than the 20-day average) reflects short-term capital enthusiasm, but the technical overbought state (high KDJ and RSI levels) may trigger correction pressure.
3. The progress of the control change completion will be a key variable for subsequent trends; if it proceeds smoothly, the rebound may continue; if there are delays or uncertainties, profit-taking may occur.

• Technical overbought risk
  : KDJ and RSI indicators are in the overbought zone, increasing the probability of short-term correction [0].
• Fundamental pressure
  : The continuous loss operating status has not improved, and the valuation is high [0][3][4].
• Transaction uncertainty
  : The control change requires confirmation from relevant authorities, and there is a risk whether it can be finally completed [5].

• The control change brings expectations of strategic adjustments and resource injection; if the new management promotes business transformation, it may enhance the company’s long-term value.
• The short-term market enthusiasm is high; pay attention to the support level of 8.57 yuan [0], if it can be maintained, the rebound may continue.

Tianchuang Fashion (603608)'s strong performance is mainly driven by market expectations of control change; consecutive limit-ups after resuming trading indicate positive short-term sentiment, but attention should be paid to risks such as technical overbought conditions, fundamental losses, and transaction uncertainties. In the future, it is necessary to monitor the progress of the control change, changes in trading volume, and the effectiveness of the 8.57 yuan support level, while being alert to the concerns of high valuation and unimproved fundamentals.