Hangtian Nanhai (688552) Strong Limit-Up Analysis: Dual Drivers of Military Trade Expansion and Low-Altitude Economy

Hangtian Nanhai (688552) surged to a limit-up on January 8, 2026, with an increase of 18.72%, closing at RMB 45.00, and entered the day’s strong stock pool [0]. The turnover on the day reached RMB 740 million, with a trading volume of 21.79 million shares, which was approximately 4.5 times the three-month average trading volume of 4.81 million shares, indicating fierce capital game [0][1].

1. Breakthrough in Military Trade Business
   : The company’s air defense early warning radar products have obtained international military trade orders, and the export project approval for a new military trade radar model has been granted. The international security situation has driven the growth of military trade demand [1][2].

2. Low-Altitude Economy Layout
   : The company has secured bulk order contracts in the low-altitude economy sector, and continues to increase investment in technological R&D and market expansion. Favorable policies for the low-altitude economy are continuously released, stimulating the development of the industrial chain [1][2].

3. Project R&D Progress
   : The company’s self-funded project to improve the R&D and manufacturing capacity of early warning radars has been approved. The R&D investment in the first three quarters reached RMB 65.22 million, accounting for more than 11% of operating revenue, ensuring technological innovation capabilities [1].

The stock price showed a typical limit-up breakout pattern on the day: opening at RMB 38.31, hitting a low of RMB 37.16, a high of RMB 45.00 (the limit-up price), and closing at the limit-up price [0]. The stock price broke through the previous resistance level, with the 52-week range being RMB 14.86-RMB 49.98, and the current price is close to the 52-week high area [0].

• Resistance Level
  : RMB 45.00-RMB 49.98 (limit-up price and 52-week high)
• Support Level
  : RMB 38.00-RMB 40.00 (5-day/10-day moving average area)
• Strong Support
  : RMB 35.00 (upper edge of the previous consolidation platform)

Abnormal surge in trading volume is a prominent feature of this rally. The trading volume on the day was 21.79 million shares, approximately 4.5 times the three-month average trading volume of 4.81 million shares, and the turnover of RMB 740 million reached a recent record high [0]. Technical indicators show that the MACD has formed a golden cross, with large inflows of main capital and a high net buying amount of super large orders [0].

The defense industry sector was strong overall on the day, with the CSI National Defense Index rising 4.46% [3][4], and its constituent stocks generally strengthened: Hangtian Electric rose 10.01% and Hangtian Electronics rose 10.00% [3]. The General Aviation Theme Index rose 4.52% in sync [5], the Defense ETF (512670) rose 4.64% [3], and the General Aviation ETF (561660) rose 4.88% [5]. The sector linkage effect provided market atmosphere support for Hangtian Nanhai’s limit-up.

2024 financial data shows that the company’s fundamentals are under obvious pressure: operating revenue was RMB 218 million, a year-on-year decrease of 69.98%; net profit attributable to parent shareholders was a loss of RMB 78.2344 million, turning from profit to loss; gross profit margin was relatively stable at 22.4%; earnings per share was RMB 0.05; the trailing twelve months (TTM) P/E ratio was as high as 627.76 times, significantly deviating from the reasonable range [6]. The company’s price-to-book (P/B) ratio of 4.87 is also at a relatively high level [6].

Despite performance pressure, the company still has the advantage of a central enterprise background (a listed company under China Aerospace Science and Industry Corporation), and has high technical barriers in the air defense early warning radar segment. Analyst ratings show that 4 analysts have all given a buy rating, with a 12-month average target price of RMB 42.75 (maximum RMB 45.50, minimum RMB 40.00). The current stock price of RMB 45.00 has a premium of about 5% compared to the target price, indicating signs of short-term overvaluation [6].

The company’s future earnings improvement mainly relies on three supports: order expectations brought by the approval of military trade radar export projects, the landing of bulk order contracts in the low-altitude economy, and continuous R&D investment to ensure technological innovation capabilities. However, it takes time to convert orders into actual performance revenue, and the substantial realization of fundamental improvement still needs to be observed.

1. Valuation Risk
   : The 627-times P/E ratio significantly deviates from the reasonable range, and the fundamentals are difficult to support the current stock price, leading to the risk of valuation regression [6].

2. Performance Risk
   : In 2024, operating revenue fell by 70% and net profit turned from profit to loss, with obvious performance pressure. The fundamentals are seriously deviated from the stock price trend [6].

3. Short-Term Risk
   : The stock price has a premium of about 5% compared to the analyst target price, and the risk of chasing the rally after the limit-up is high, with a need for pullback and consolidation [6].

4. Liquidity Risk
   : The circulating market capitalization is only RMB 3.866 billion. Small-cap stocks are vulnerable to capital manipulation, and stock prices are highly volatile.

5. Sustainability Risk
   : The current rally is mainly driven by sentiment and capital, and the sustainability of news catalysis is questionable.

1. Military Trade Business Expansion
   : Changes in the international security situation have driven the growth of military trade demand, and the improvement of the company’s product export competitiveness has brought long-term order expectations.

2. Policy Dividends for Low-Altitude Economy
   : Favorable policies for the low-altitude economy are continuously released, and the company has obtained bulk order contracts, providing development opportunities in the policy outlet.

3. R&D Investment Ensures Innovation
   : The R&D investment accounting for more than 11% provides continuous guarantee for technological innovation, and long-term competitiveness is expected to be consolidated.

4. Capital Attention to the Sector
   : The defense industry sector is sought after by capital, and the sector’s popularity provides liquidity support for individual stocks.

If it can continue to close at the limit-up price, there may be an inertial upward movement, but risks continue to accumulate. Close attention should be paid to:

• Whether the limit-up closing orders are stable
• Changes in trading volume after the limit-up is broken
• Whether main capital continues to flow in

If the limit-up is broken with heavy volume, investors need to be wary of the pullback risk caused by profit-taking.

The sustainability of the sector’s market depends on the intensity of subsequent news catalysis, including:

• Progress of military trade order landing
• Implementation of low-altitude economy contracts
• Verification of 2025 earnings improvement expectations

The current stock price is driven by

, and is seriously deviated from the fundamentals. Investors should view the short-term rally rationally and be wary of the risk of “being trapped by chasing the rally”. Although the limit-up breakout pattern shows strength, the sustainability of the trend can only be confirmed after the verification of fundamental improvement.

Hangtian Nanhai’s limit-up today is the result of the combined effect of

. The three catalysts of military trade business expansion, low-altitude economy layout, and early warning radar project, coupled with the overall strength of the defense industry sector, have formed short-term explosive force. However, the company’s 2024 performance slumped sharply and its valuation is extremely high, making it difficult for the fundamentals to support the continuous rise of the current stock price. Technically, it shows a volume breakout pattern, but investors need to be wary of the pullback risk after short-term overvaluation.

: This analysis is compiled based on market data and technical indicators, and does not constitute investment advice. Investors should combine their own risk tolerance, pay attention to the subsequent progress of order landing and performance improvement, and make rational decisions.