Analysis Report on the Strong Performance of Yuyin Co., Ltd. (002177.SZ)

Yuyin Co., Ltd. (002177.SZ) recent strong performance is mainly influenced by three factors: policy catalysis, capital pursuit, and sector linkage:

On January 1, 2026, the central bank officially implemented Digital RMB 2.0, requiring all ATMs nationwide to complete Digital RMB adaptation by the end of the year [1]. As a leading domestic enterprise with a market share of over 40% in ATM exchange modules, Yuyin Co., Ltd. will directly benefit from the terminal upgrade wave [1]. In addition, the company is the only equipment supplier supporting ATM exchange of Hong Kong and Macau offshore stablecoins, and its hardware encryption technology has obtained sandbox certification from the Hong Kong Monetary Authority, giving it a first-mover advantage in cross-border payments [1].

• Price Trend
  : The stock price has risen by 34.05% in the past 5 days, with a 10.06% increase closing at the daily limit-up on December 31 [0]; it rose by 43.88% in one month and 124.05% for the full year of 2025 [0].
• Trading Volume and Capital Flow
  : On December 31, trading volume reached 384.62 million shares, expanding 7 times compared to the average volume of 52.63 million shares [0]. Institutional seats net bought 85.7086 million yuan, and northbound funds participated in buying [4]; on December 30, 2025, the financing balance increased by 76.05%, with leveraged funds significantly increasing their positions [5].
• Price Level Analysis
  : The current stock price has broken through the previous resistance level. The resistance level is $10.40 (52-week high) [0], and the support level is around $7.77 (near the 5-day moving average) [0].

The company belongs to the computer and fintech sector, which has strengthened overall driven by the Digital RMB 2.0 policy, forming sector resonance [1]. However, its fundamentals are weak: Q3 2025 revenue was only $11.66 million, ROE was 0.59% [0]; the current P/E ratio of 713.58 times is far higher than the industry average, showing obvious signs of valuation bubble [0].

1. Policy expectation is the core driver: The stock price rise is mainly based on the expectation of Digital RMB 2.0 policy on the company’s performance, not actual performance growth [1][0].
2. Capital-driven rise characteristics: High turnover (56.99%), leveraged fund加仓, and institutional net buying indicate狂热 market sentiment [0][4][5].
3. Valuation and fundamentals divergence: High P/E ratio contrasts sharply with low revenue and low ROE, and the stock price lacks sustained fundamental support [0].

• Overvaluation Risk
  : The P/E ratio of 713.58 times is far higher than the industry average, posing significant valuation bubble risk [0].
• Insufficient Fundamental Support
  : Sluggish revenue, low net profit margin, and ROE of only 0.59% make it difficult to support the current high stock price [0].
• Policy Implementation Uncertainty
  : The specific impact of Digital RMB 2.0 on the company’s performance needs time to verify, and the progress or effect of policy implementation may be lower than expected [1].

• Digital RMB Terminal Upgrade Dividend
  : The demand for Digital RMB adaptation of national ATMs will bring business growth [1].
• First-mover Advantage in Cross-border Payments
  : Hong Kong and Macau offshore stablecoin exchange equipment and technical certification provide opportunities for the company to expand cross-border business [1].

• Yuyin Co., Ltd.'s recent strength is mainly catalyzed by the Digital RMB 2.0 policy, combined with capital pursuit and sector resonance [1][0][4][5].
• Technical indicators show that the stock price is in a strong upward channel, but expanded trading volume and surging financing balance require vigilance against short-term fluctuations [0][4][5].
• Weak fundamentals and high valuation form a significant contradiction, and the current stock price more reflects market expectations rather than intrinsic value [0][1].

The analysis is based on historical data and policy expectations. Future performance needs to continue to pay attention to the progress of Digital RMB policy implementation, the company’s business expansion, and changes in market capital sentiment.