Zhite New Materials (300986) Logs 4 Consecutive 20cm Daily Limit Ups: Driven by AI Concept, with Risks of Deviation from Fundamentals

Zhite New Materials (300986) achieved its 4th consecutive ‘20cm’ daily limit up on January 8, 2026, becoming a market focus. This round of daily limit ups is mainly driven by the AI for Science (AI4S) concept – the ‘Thin Phase Change High-Temperature Thermal Insulation and Flame-Retardant Material’ jointly developed by the company and the University of Science and Technology of China (USTC) was selected for the first CCTV ‘Science Spring Festival Gala’ exhibition, coupled with the outstanding performance of a 906.32% year-on-year surge in net profit attributable to parent company in H1 2025. However, the company has clearly announced that there are no major operational changes at present, its core new material business is still in the R&D stage, and the short-term stock price increase has significantly deviated from fundamentals. In view of the amplified risks under the 20% price limit system, it is recommended that investors be cautious about chasing highs, and pay attention to subsequent changes in trading volume and company announcements.

The core catalyst for Zhite New Materials’ this round of daily limit ups is its AI-driven new material R&D concept. On August 18, 2025, the company and the State Key Laboratory of Precision Intelligent Chemistry of USTC launched the ‘Thin Phase Change High-Temperature Thermal Insulation and Flame-Retardant Material’, which shortened the traditional material R&D cycle from 3 years to 11 months by using machine learning models to screen formulas and quantum chemistry calculations to simulate molecular heat transfer paths [4]. This material was selected for the first CCTV ‘Science Spring Festival Gala’ exhibition, and was named one of the Top 10 Annual Frontier Application Achievements after joint selection by the Publicity Department of the Central Committee of the Communist Party of China and the Ministry of Science and Technology. This national-level exposure has greatly increased market attention.

From the perspective of financial data, the company achieved operating revenue of RMB 1.293 billion in H1 2025, a year-on-year increase of 28.7%; net profit attributable to parent company was RMB 76.1972 million, a year-on-year surge of 906.32% [4]. As of September 30, 2025, the company achieved operating revenue of RMB 2.023 billion, a year-on-year increase of 12.09%; net profit attributable to parent company was RMB 118 million, a year-on-year increase of 98.65% [3]. Such strong performance growth provides fundamental support for the stock price increase, especially the explosive growth of net profit attributable to parent company is mainly due to improved gross profit margin and optimized expense control.

According to public information, the company’s new material business has entered the final verification stage before mass production, and production line debugging has been completed [4]. In terms of customer expansion, the company has signed a contract with PIVI (a global leading infrastructure service provider) and is currently in contact with CATL’s battery structural parts project [4]. In addition, the company has been included in the list of key promoted new functional materials in the Building Materials Industry Steady Growth Plan (a document released by six ministries including the Ministry of Industry and Information Technology in November 2025), enjoying policy dividends [4].

Data from the Dragon and Tiger List shows that on January 5 (the day before the 4th daily limit up), total buy value was RMB 226 million, total sell value was RMB 64.3 million, with a net buy of RMB 161 million [3]. Major buyers included CITIC Securities (Shandong) Qingdao East Hong Kong Road with a net buy of RMB 143 million, institutional seats with a buy of RMB 23.69 million, and northbound funds with a buy of RMB 22.31 million [3]. The active participation of institutional seats and northbound funds shows recognition from professional capital.

On January 5, the turnover reached RMB 1.106 billion, with a turnover rate of 20.96% [3]. Consecutive daily limit ups accompanied by high turnover rate indicate intense capital game. As of September 30, 2025, the number of shareholders of the company was 20,500, an increase of 41.48% from the previous period, with an average of 20,123 tradable shares per shareholder [3]. The increase in chip dispersion may increase stock price volatility.

Bullish views believe that the company has the scarce positioning of ‘the first stock of AI material applications’ [2], coupled with performance support and policy benefits, capital pursuit enthusiasm is high. Bearish views focus on the company’s clear reminder that ‘operating conditions and internal and external operating environment have not undergone major changes’, and the fire insulation material ‘is still in the laboratory R&D optimization stage and has not yet reached mass production conditions’ [1], questioning that the current stock price has seriously overdrawn future expectations.

The market positions Zhite New Materials as a scarce target of the AI4S concept in the material sector, but the company’s current main business is still dominated by aluminum formwork systems (accounting for 55.53% of revenue), and the new material business has not yet contributed substantive revenue. Some investors question the large gap between the company’s market value of more than RMB 5 billion and its 2024 brand value of RMB 22.8 billion [2]. This valuation divergence may continue to ferment in the subsequent trend.

The company clearly stated that ‘its business does not involve the commercial aerospace field’ [1] and ‘there is no major information that should be disclosed but not disclosed’ [1]. Such active clarification in the A-share market usually implies that the stock price increase has attracted regulatory attention. Investors need to be alert to the possibility of subsequent regulatory inquiries or the company’s active risk reminders.

Against the background of increased top-level attention to the hydrogen energy industry [1], the market has also paid high attention to Zhite New Materials’ hydrogen energy-related layout. However, the direct correlation between the company’s main business and the hydrogen energy industry chain is limited, and investors need to distinguish between concept speculation and actual business contributions.

: The company clearly announced that there are no major operational changes at present, the core new material business is still in the R&D stage, and the short-term stock price increase (about 80%+) has significantly deviated from fundamental support [1].

: The 906.32% year-on-year surge in net profit attributable to parent company mainly benefits from the low base effect and cyclical factors, and it is difficult to maintain such high growth rate in the future.

: There is great uncertainty from new material R&D to mass production, and the industrialization process may fall short of expectations.

: Under the ChiNext Board’s 20% price limit system, the intraday stock price volatility is relatively large, and the risk of short-term chasing highs is significantly amplified.

: The company clearly stated that its business does not involve the commercial aerospace field [1], and some market expectations may fail to materialize.

: If it successfully obtains orders from leading customers such as CATL or achieves mass production breakthroughs, the stock price may have further upside potential.

: Having been included in the list of key promoted products in the Building Materials Industry Steady Growth Plan [4], policy dividends are expected to be released in the future.

: Judging from the Dragon and Tiger List data, institutional seats and northbound funds are both buying [3]. If institutional positions continue to increase in the future, a slow bull pattern dominated by institutions may form.

: Profit-taking pressure is relatively high, and attention should be paid to changes in trading volume. If volume remains high, it may maintain high-level consolidation; if volume shrinks, it may start a correction.

: Need to verify the actual progress of the new material business and pay attention to subsequent company announcements and order status.

: Depends on the industrialization process of AI-driven material technology and the continuous profitability of the aluminum formwork main business.

Scenario	Trigger Conditions	Forecast
Scenario 1: Continued Rise	Major breakthrough in new material business, obtaining orders from leading customers such as CATL	May challenge the 5th-6th daily limit up, but the probability is low
Scenario 2: Range-Bound Consolidation	Market sentiment remains, trading volume stays high, average daily turnover remains above RMB 1 billion	Consolidate near current price to digest profit-taking orders
Scenario 3: Correction	Concentrated profit-taking, market sentiment fades, trading volume shrinks	Retest the 10-day/20-day moving average, with a potentially large correction range

Price Type	Price Range	Remarks
Theoretical Resistance Level	Approximately RMB 17 (the 5th daily limit up price)	Difficult to break through, requires major positive stimulus
Initial Support Level	RMB 11.5-RMB 12	Previous platform consolidation range
Strong Support Level	Near the 10-day moving average	Short-term lifeline, a break may trigger a chain reaction

Investors should focus on the following indicators in the future: changes in subsequent trading volume (alert if daily turnover falls below RMB 500 million), company announcements (especially progress in new material business and order status), Dragon and Tiger List capital trends (whether institutions continue to buy or start selling), and overall market sentiment (the impact of the overall ChiNext Board trend on individual stocks).

This round of consecutive daily limit ups of Zhite New Materials is

, coupled with market attention to the hydrogen energy/new material sectors. The core highlight is the AI-driven new material technology jointly developed with USTC, which has been selected for the CCTV ‘Science Spring Festival Gala’ exhibition and entered the pre-mass production verification stage. However, the company has clearly reminded that , and clearly stated that its business does not involve the commercial aerospace field.

From the capital flow perspective, main funds show a net buy trend, institutional seats such as CITIC Securities and northbound funds are actively participating, but the 41.48% increase in the number of shareholders also shows obvious retail following. Technically, after 4 consecutive 20cm daily limit ups, the stock price has seriously deviated from short-term moving averages, and the risk of short-term correction is high.

: This analysis is compiled based on public information and does not constitute investment advice. The risk of chasing highs after consecutive daily limit ups is high, and investors should make prudent decisions based on their own risk tolerance.