300986 Zhite New Materials Strong Performance Analysis: Driving Factors and Sustainability Judgment

Zhite New Materials (300986) performed strongly on January 5, 2026. The stock price rose by 20.04% to $13.42 [0], with trading volume of 86.29M, which is 8.4 times the average daily volume (10.19M), achieving a rise in both volume and price.

: The company’s core businesses include building formwork and prefabricated buildings, which are highly aligned with China’s green building policies. Prefabricated buildings have entered a stage of rapid development due to advantages such as short construction cycles and low costs [2], providing demand support for the company’s main business. Meanwhile, in March 2025, the company laid out the AI for Science (AI4S) new material R&D field and established a subsidiary in cooperation with the Quantum Technology Yangtze River Delta Industry Innovation Center, etc. This innovative layout is regarded as a key driver of long-term growth [1].

: The stock price broke through the long-term consolidation range (around $10). On December 31, 2025, it had risen by 8.54% and the trading volume increased. On January 5, 2026, it further broke through the previous resistance level of $11.18 with increased volume [0], forming a typical bullish breakout pattern.

1. Dual-track Synergy Attraction
   : The company is in two hot fields: AI4S new materials and prefabricated buildings, attracting the attention of funds from both tracks, which has become an important support for the short-term surge in stock prices.
2. Two-sided Nature of Volume-Price Signals
   : The 8.4x average daily trading volume indicates extremely positive market sentiment, but the excessive short-term gains (a cumulative 30.29% over 5 days) have accumulated profit-taking pressure.
3. Balance Between Valuation and Growth
   : The current price-earnings ratio (39.89x) is higher than the industry average [0], reflecting the market’s high expectations for its long-term growth, but the commercialization of the AI4S business needs to be verified to justify the valuation.

• The prefabricated building market continues to grow, policy support is stable, and the company’s main business has room for expansion [2];
• If breakthroughs are made in AI4S new material R&D, it will open up new profit growth points [1].

• Short-term Correction Risk
  : Excessive short-term gains lead to profit-taking pressure;
• Commercialization Risk
  : The AI4S new material business is in the R&D stage and has not yet formed performance growth [1];
• Liquidity Risk
  : The quick ratio is only 0.78, leading to large short-term debt repayment pressure [0];
• Policy Dependency
  : The construction industry is affected by policy cycles; if support weakens, the growth of the main business may be restricted.

Zhite New Materials’ current strong performance is driven by long-term policy and technology layout, as well as short-term technical breakthroughs. Regarding key price levels, the support level is $11.18 (the high point on December 31, 2025), and the resistance level is $16.35 (the 52-week high) [0]. Investors need to pay attention to the progress of the AI4S business, policy changes in the prefabricated building market, and the company’s liquidity status to evaluate its long-term investment value and short-term fluctuation risks.