Huasu Co., Ltd. (600935) Limit-Up Analysis: Short-Term Performance Driven by Sector Rotation and Market Sentiment

Huasu Co., Ltd. (600935) confirmed its limit-up at the morning close on January 8, 2026, with the limit-up price approximately RMB 2.75 [1][2]. From the market environment perspective, the A-share market was relatively active that day, with a total of 82 stocks hitting the upward limit and 3,513 stocks rising, accounting for 67.91% [1]. As one of the limit-up stocks in the basic chemical sector, Huasu Co., Ltd. caught the tailwind of sector rotation and formed a linkage effect with the other 7 limit-up stocks in the sector [1]. From an industry perspective, the basic chemical sector performed strongly overall that day, with obvious capital inflows, providing solid sector support for Huasu Co., Ltd.'s limit-up.

The driving factors of this limit-up can be analyzed from the following dimensions. First is

: The number of limit-up stocks across the market reached 82 that day, and the overall market bullish sentiment was strong [1], which created favorable conditions for individual stocks to hit the upward limit. Second is : A total of 8 stocks in the basic chemical sector hit the upward limit that day [1], and the collective strength of the sector provided clear direction guidance for Huasu Co., Ltd. Third is : According to capital flow data, main funds had a net inflow of RMB 6.0773 million on January 6, accounting for 6.79% of the total transaction volume [2], indicating that institutional funds began to position themselves; although there was a net outflow of RMB 5.7272 million from main funds on January 7 [3], the limit-up on January 8 indicated that main funds had a covering move or chose to hold positions for further gains.

In addition,

are also worthy of attention. The company announced on December 26, 2025, that the first extraordinary general meeting of 2026 would be held on January 15, 2026 [4], to review the estimated daily connected transactions for 2026. According to the announcement, the company expects to purchase products and commodities from connected parties for RMB 731.5 million, accept services for RMB 279.38 million, and sell products and commodities to connected parties for RMB 84.4613 million in 2026 [4]. This announcement indicates that the company’s future operating scale is expected to remain stable, which the market has certain expectations for. Finally, the also provided certain support for the stock price. Huasu Co., Ltd. is listed as one of the concept stocks for electronic-grade dichlorosilane, a product mainly used in semiconductor manufacturing [5]. Against the policy background of domestic substitution and independent controllability of semiconductors, the market has paid certain attention to its semiconductor material business.

From a fundamental perspective, Huasu Co., Ltd.'s financial data in the first three quarters of 2025 showed a differentiated trend. The overall performance in the first three quarters was under pressure: operating revenue was RMB 3.449 billion, down 8.24% year-on-year; net profit attributable to shareholders was -RMB 120 million, down 43.36% year-on-year; non-recurring net profit was -RMB 136 million, down 38.73% year-on-year [3]. However, the Q3 single-quarter performance improved significantly: operating revenue was RMB 1.262 billion, down 11.16% year-on-year, but net profit attributable to shareholders was RMB 8.7741 million, up 114.86% year-on-year, and non-recurring net profit was RMB 5.3068 million, up 108.24% year-on-year [3]. This “front loss, later profit” pattern indicates marginal improvement in the company’s operations.

From the liability side, the company’s asset-liability ratio is 39.6% [3], which is at a medium level in the chlor-alkali chemical industry, with no significant debt repayment pressure. Comprehensive analysis shows that the company is still in an overall loss in the first three quarters, and substantial improvement in fundamentals remains to be observed. The current limit-up is driven more by market sentiment and capital factors, with relatively limited fundamental support.

From a technical perspective, Huasu Co., Ltd.'s current stock price is approximately RMB 2.75, which is in a relatively low historical range [2]. It is worth noting that the Shanghai Composite Index closed above the half-year line on January 8, 2026, with a total of 205 A-shares breaking through the half-year line [6], and Huasu Co., Ltd. may also be in a technical breakthrough stage near the half-year line. From the perspective of volume matching, the transaction volume on the limit-up day was RMB 89.4796 million [2], with volume increasing but no abnormal surge, indicating relatively orderly capital participation. The turnover rate of 1.47% [1] is within the normal range, indicating that the chip locking situation is acceptable. Follow-up attention should be paid to the stability of the limit-up order: if the order is firm and trading volume increases moderately, it is expected to further rise; if the board opens, it is necessary to be wary of selling pressure from short-term profit-taking.

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Although the company turned from loss to profit in Q3 single-quarter and surged 114.86% year-on-year [3], the sustainability of this improvement is worthy of attention. The following points should be noted: First, the Q3 performance growth was partly due to the low base in the same period last year; second, the prices of main products such as PVC and caustic soda are still in a volatile cycle, and the industry has obvious cyclical characteristics; third, the overall loss of RMB 120 million in the first three quarters indicates that the company’s fundamentals have not yet achieved a fundamental turnaround. Therefore, whether the Q3 performance improvement can continue in the fourth quarter and 2026 remains to be further verified.

Huasu Co., Ltd. is listed as a concept stock for electronic-grade dichlorosilane [5], a product mainly used in semiconductor manufacturing. However, according to public information, the company’s production capacity for this business is relatively small (500 tons/year), accounting for a low proportion of the company’s overall revenue. Against the background of the current market’s pursuit of semiconductor material concepts, this concept may be at risk of being over-interpreted. Investors should view it rationally and avoid ignoring the company’s overall fundamentals due to concept speculation alone.

From the capital flow data, main funds had a net inflow of RMB 6.0773 million on January 6 [2], but a net outflow of RMB 5.7272 million on January 7 [3], showing that short-term funds have the characteristics of quick in and out. This capital behavior pattern indicates that the funds participating in Huasu Co., Ltd. are mainly focused on short-term gaming, lacking sustained medium- and long-term capital support. This capital structure may lead to greater stock price volatility, and investors need to be vigilant.

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In terms of

, the company is still in an overall loss in the first three quarters, with net profit attributable to shareholders of -RMB 120 million [3], and the fundamental support is relatively limited. The chlor-alkali chemical industry is highly cyclical, and fluctuations in PVC and caustic soda prices will directly affect the company’s performance. In addition, although the company’s asset-liability ratio of 39.6% is at a medium level [3], there is still certain financial pressure during the industry downturn cycle.

In terms of

, the quick in and out behavior of main funds [2][3] indicates that the current limit-up is mainly driven by short-term funds. Once the market sentiment weakens or sector rotation ends, the stock price may face greater pullback pressure. At the same time, attention should be paid to whether the limit-up board opens after the limit-up; if it opens, it may trigger short-term selling pressure. In addition, the current limit-up is more driven by sector sentiment [1], with insufficient fundamental driving force, which is a typical event-driven speculation.

In terms of

, the main fund data has a certain lag, and the electronic-grade dichlorosilane business accounts for a small proportion of the company’s revenue [5], so it should not be over-interpreted. Investors should pay attention to subsequent information disclosure and avoid making investment decisions based on incomplete information.

are the main current opportunity. The company turned from loss to profit in Q3 single-quarter [3], indicating that its operation and management may be improving. If this improvement trend can continue, combined with the recovery of industry prosperity, the company’s fundamentals are expected to gradually improve.

In terms of

, the policy direction of domestic substitution and independent controllability of semiconductors is clear [5], and semiconductor material businesses such as electronic-grade dichlorosilane are expected to benefit from policy support. Although the current business scale is small, the long-term development space is worthy of expectation.

In terms of

, the extraordinary general meeting to be held on January 15 will review the estimated daily connected transactions for 2026 [4]. If positive signals are sent, it may provide further support for the stock price.

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The limit-up of Huasu Co., Ltd. (600935) today is the result of the combined effect of multiple factors. From the driving factors, they mainly include: the recovery of overall market bullish sentiment (82 limit-up stocks) [1], the rotational rise of the basic chemical sector (8 sector limit-up stocks) [1], short-term positioning by main funds (RMB 6.07 million net inflow on January 6) [2], and the expectation of marginal improvement in Q3 performance (Q3 single-quarter loss to profit) [3]. From the fundamental perspective, the company is still in an overall loss in the first three quarters, but its Q3 performance improved significantly, showing positive changes in operations. From the technical perspective, the stock price is at a historical low, and a technical breakthrough may be formed near the half-year line [6].

The analysis reveals several worthy-of-attention risk factors. First, the limit-up of this stock is mainly driven by market sentiment and sector rotation, with limited fundamental support [3], which is a typical event-driven speculation. Second, main funds have the characteristics of quick in and out [2][3], with insufficient capital stability. Third, the industry is highly cyclical, and fluctuations in PVC and caustic soda prices will directly affect performance. Investors are advised to remain rational, closely follow the subsequent trend, and be wary of the risk of a pullback from high levels.