Analysis of Strong Performance and Sustainability Judgment of Triumph King (603608)

This analysis event occurred on January 5, 2026 (UTC+8), when Triumph King (603608) entered the strong stock pool on that day. Previously, the company issued a control change announcement on December 26, 2025, and after resuming trading on December 29, 2025, it hit the daily limit for 2 consecutive trading days, with a cumulative stock price increase of 41.68% as of December 31, 2025 [0].

1. Core Reasons for Strong Performance
   : The recent strength of Triumph King is mainly catalyzed by the control change announcement. On December 26, 2025, the company announced that controlling shareholder Quanzhou Hetian and second largest shareholder Hong Kong Gaochuang plan to transfer a total of 19.95% of shares to Anhui Xianrui. After completion, the controlling shareholder will change to Anhui Xianrui, and the actual controller will change to Hu Xiangen [1][2]. The share transfer price is 7.5 yuan/share, with the total consideration of approximately 628 million yuan. The transferee Anhui Xianrui has promised a 36-month lock-up period, showing long-term investment confidence [2]. In addition, the M&A restructuring concept, active textile and apparel sector, and market expectations of the company’s live-streaming e-commerce layout (Douyin, Xiaohongshu and other platforms) further promoted the stock price rise [1].

2. Technical Analysis
   : The stock price rose from 7.27 yuan to 10.30 yuan within 30 days, an increase of 41.68%. After resuming trading, it hit the daily limit for 2 consecutive days, with a cumulative increase of 21.03% [0]. In terms of trading volume, it increased significantly after resumption: the volume on December 29, 2025 was 94.61M and 69.76M on December 30, far higher than the 30-day average volume of 15.14M, indicating high attention from market funds [0]. Technical indicators show that the KDJ indicator (K:93.8, D:90.3, J:100.9) is in the overbought range, RSI indicates overbought risk, and MACD shows a bullish trend [0].

3. Fundamental Analysis
   : The company’s fundamentals are weak, with consecutive losses from 2023 to 2025 (net profits were -30.16 million yuan, -90.18 million yuan, -5.226 million yuan respectively) [2]. EPS is negative, and P/E (TTM) is -61.13, which is overvalued [0][2].

• The strong stock price performance this time is mainly driven by restructuring expectations brought by the control change, which is promoted by short-term speculative sentiment rather than substantial improvement in the company’s fundamentals.
• The significant increase in trading volume after resumption reflects high market attention to the company’s control change, but the overbought technical indicators suggest rising short-term correction risks.
• The new controlling shareholder Anhui Xianrui has promised a 36-month lock-up period, indicating its long-term plan for the company. However, the company’s consecutive loss fundamentals mean that if there are no substantial asset restructuring or performance improvement measures subsequently, the stock price lacks long-term support.

1. Risks
   :
   • Fundamental risk: Consecutive losses, overvaluation, lack of long-term profit support [0][2].
   • Technical risk: In the overbought range, with high short-term correction pressure [0].
   • Theme risk: Uncertainty exists in subsequent actions (such as asset injection) after the control change; continuous attention to company announcements is required [2].

2. Opportunities
   :
   • The entry of the new controlling shareholder may bring positive developments such as strategic adjustments and asset injections, promoting the improvement of the company’s fundamentals.
   • The active textile and apparel sector and live-streaming e-commerce layout, if effectively implemented and contribute to performance, may bring new growth momentum to the company [1].

The recent strong performance of Triumph King (603608) is mainly driven by restructuring expectations triggered by the control change. Technically, the stock price and trading volume have increased significantly but are in an overbought state; fundamentally, the company has consecutive losses and lacks long-term support. The short-term trend may maintain popularity due to restructuring expectations, but if there are no substantial positive announcements subsequently, the sustainability of the stock price is questionable. Investors should pay attention to the subsequent dynamics after the company’s control change, progress of asset restructuring, and performance improvement, and make decisions based on their own risk preferences.