Analysis of the Strong Performance of Guanggang Gases (688548): Resonance Between Institutional Capital Buying and Localization Substitution Logic

On January 7, 2026, Guanggang Gases (688548.SS) surged to a trading halt, closing at RMB 18.12, with a daily amplitude of 20.00%, a turnover rate of 8.69%, and a turnover value of RMB 1.037 billion. It made it onto the Dragon and Tiger List of the Shanghai and Shenzhen Stock Exchanges due to a 15% price increase[2]. On the same day, institutional seats recorded a net purchase of RMB 106 million, and northbound funds recorded a net purchase of RMB 74.234 million, showing obvious signs of capital inflow[2]. From a technical perspective, the stock price hit a record high, and trading volume expanded significantly, indicating strong bullish momentum.

Data from the Dragon and Tiger List shows that professional institutional investors have expressed strong bullish sentiment towards the stock. The net purchase of RMB 106 million by institutional seats was the direct driver of the trading halt on that day, and the net purchase of RMB 74.234 million by northbound funds further verified foreign capital’s attention to the leading domestic semiconductor gas player[2]. In terms of capital nature, institutional capital usually has a longer investment horizon and stronger research capabilities, and its concentrated buying often indicates recognition of the company’s fundamentals and growth logic.

The company’s 2025 Q3 report shows that operating revenue reached RMB 1.721 billion, a year-on-year increase of 14.85%; net profit attributable to parent company was RMB 201 million, a year-on-year increase of 10.64%[2]. In terms of business structure, electronic bulk gases account for 72.77%, and general industrial gases account for 22.72%, forming a business layout centered on semiconductor electronic gases[2]. From a cash flow perspective, operating cash flow per share reached RMB 0.49, a year-on-year surge of 71.78%, indicating good operating quality of the company[2].

The company deeply benefits from two major industry trends: First, the acceleration of the localization process of the semiconductor supply chain. In 2024, the company won 41% of the production capacity of new on-site gas generation projects in the domestic integrated circuit manufacturing and semiconductor fields, ranking first in the industry, and successfully broke the long-term monopoly of foreign capital[6]; Second, the rapid development of the commercial aerospace industry. The company continues to provide key gas support for all launch missions at the Hainan Commercial Aerospace Launch Site[4]. The superposition of the two themes endows the company with high market attention and valuation premium space.

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The core competitiveness of Guanggang Gases lies in its successful entry into the semiconductor electronic gas market long-dominated by international giants. For a long time, three international gas giants, Linde, Air Liquide, and Air Products, have monopolized China’s semiconductor gas market. As a local leader, Guanggang Gases has successfully formed a “1+3” competitive pattern with these international giants[6]. This change in pattern reflects the strategic demand for independent and controllable semiconductor industry chain, and also brings continuous orders and growth momentum to the company. The bulk gas station project specially invested and constructed by the company at ChangXin Memory Technologies’ Hefei base, including a 36000Nm³/H nitrogen production unit[6], reflects the recognition of the company’s technical strength by downstream leading customers.

It is worth noting that the number of shareholders of the company reached 19,400, an increase of 4.51% from the previous period, indicating a dispersion of chips[2]. At the same time, changes occurred in the top 10 tradable shareholders, with Southern Information Innovation Hybrid A and Invesco Great Wall Electronic Information Industry Stock Class A exiting[2]. This phenomenon of increased retail holdings and exit of some public funds forms a certain divergence from the large-scale net purchase of RMB 106 million by institutional seats on that day, which may mean that there are major differences among institutions on the stock, or it may be a position adjustment behavior. It is necessary to continue to pay attention to changes in the number of shareholders and institutional holding dynamics in the future.

On that day, the SSE STAR Market 100 Index rose 1.76%, and Guanggang Gases, a component stock, rose 13.91%, significantly outperforming the index[5]. Against the background of a strong bullish atmosphere in the entire STAR Market, the liquidity-abundant market environment amplified the company’s own fundamental positives and theme popularity. This beta effect may continue in the short term, but investors also need to be wary of synchronous risks when the entire STAR Market pulls back.

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: The massive intervention of institutional capital provides direct support for the stock price. The net purchase scale of RMB 106 million is a relatively large amount among STAR Market stocks, reflecting professional investors’ optimistic expectations for the company’s short-term performance[2]. In addition, the continuous recovery of the semiconductor industry’s prosperity and the growth of gas demand driven by AI chip capacity expansion may all become short-term catalysts for the company’s stock price.

: From the perspective of the annual report and Q1 report, the company’s revenue and net profit maintain double-digit growth, with sufficient order reserves, and the scale effect of the electronic bulk gas business is expected to gradually emerge. The new on-site gas generation projects won in 2024 will contribute revenue in the next 1-2 years, forming performance realization.

: The localization substitution rate of semiconductor electronic gases is still at a low level, and as an industry leader, the company is expected to continue to benefit from this structural trend. The rapid development of the commercial aerospace industry will also bring incremental demand for the company’s key gas businesses such as helium and nitrogen.

: Based on the closing price of RMB 18.12, the company’s current price-to-earnings ratio is at a relatively high level, and the further increase in valuation after the trading halt means that stronger performance growth is needed to digest it. Investors should pay attention to the pullback risk that may be triggered by the large short-term price increase.

: Concepts such as commercial aerospace and hydrogen energy are highly popular. It is necessary to distinguish between thematic investment sentiment and the company’s actual performance contribution to avoid blindly chasing high prices.

: The company still faces direct competition from international giants such as Linde and Air Liquide, and needs to continue to invest in R&D and customer expansion to maintain its leading position.

: STAR Market stocks have high volatility, and if the stock price encounters a market adjustment after a rapid rise, a large pullback may occur.

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The strong performance of Guanggang Gases on January 7 was jointly driven by institutional capital buying, fundamental improvement, and thematic hotspots. The liquidity signals were positive on that day, with institutional seats recording a net purchase of RMB 106 million and northbound funds recording a net purchase of RMB 74.234 million[2]. The fundamentals were stable, with revenue and net profit maintaining double-digit growth in the first three quarters of 2025[2]. The superposition of the two themes of semiconductor localization and commercial aerospace increased market attention[4][6]. From the transaction data, the daily amplitude of 20% and turnover rate of 8.69% show fierce long-short game[2]. The short-term momentum is relatively strong, but investors need to be wary of pullback risks after sentiment fades. As a leading player in the localization substitution of semiconductor electronic gases, the company has long-term growth logic under the industry’s structural opportunities, but it is necessary to be cautious about chasing high prices in the short term.