Qiangli New Materials (300429) Strong Performance Analysis: Technical Drivers and Fundamental Risks

Qiangli New Materials (300429) is a specialty chemicals enterprise under the basic materials sector. On January 6, 2026, it performed strongly with a single-day increase of 15.84%, and its stock price rose from $13.34 to $15.80[0]. Trading volume surged to 144 million shares, far higher than the average volume of 22.85 million shares[0], indicating a significant increase in market attention and participation. Technical analysis shows that the stock is in a pending confirmation uptrend; the MACD indicator has a golden cross sending a bullish signal, and the KDJ indicator also shows a bullish trend[0]. On that day, the stock price broke through the resistance level of $16.37, with the next target level pointing to $16.99[0].

Although technical indicators show positive signals, the company’s fundamentals are weak. In the trailing twelve months (TTM), the net profit margin is -19.04%, ROE is -9.63%, and EPS is -$0.35[0], all negative. The price-to-earnings ratio (P/E) is -46.63x, price-to-book ratio (P/B) is 4.52x, and price-to-sales ratio (P/S) is 8.87x[0], with high valuation and lack of profit support. This indicates that the current strong performance is driven more by market sentiment and technical breakthroughs rather than fundamental improvements.

1. Technical Overbought Risk
   : The RSI indicator shows overbought signs, which may face short-term correction pressure[0].
2. Weak Fundamentals
   : The company continues to lose money and lacks profitability to support stock price increases[0].
3. Excessive Rise Risk
   : The single-day increase is relatively high, and there is a possibility of profit-taking[0].

1. Technical Breakthrough Confirmation
   : If the trading volume continues to expand and stabilizes above $16.37, the uptrend will be confirmed, and it is expected to rise further to $16.99[0].
2. Market Sentiment Boost
   : The strong performance has attracted market attention and may continue to gain capital favor[0].

• Stock Code: 300429 (Qiangli New Materials)
• Sector: Basic Materials / Specialty Chemicals
• Single-day Increase: 15.84%, Closing Price: $15.80
• Trading Volume: 144 million shares (more than 6 times the average volume)
• Technical Aspects: MACD golden cross, KDJ bullish, breakthrough of $16.37 resistance level
• Fundamentals: Net profit margin, ROE, EPS are all negative, high valuation
• Support Level: $14.14, Resistance Level (broken): $16.37, Next Target Level: $16.99