Huatu Shanding (300492) Rallies to Limit-Up, AI Strategy Fuels Earnings Surge

Huatu Shanding (300492) surged to limit-up on January 8, 2026, closing at RMB 87.45, a record high, with a daily gain of 13.66% and a total market capitalization of approximately RMB 17.2 billion[1][2]. Having successfully transformed from a traditional architectural design enterprise to a leading vocational education company, the company saw its net profit attributable to parent company surge 92.48% year-on-year in the first three quarters of 2025, benefiting from the drive of its “All in AI” strategy and the continued boom in the public exam market[1]. The strategic cooperation reached with Fenbi Public Exam in December 2025 further enhanced the company’s technological advantages in the AI education field[1]. Although the net outflow of RMB 15.7715 million in main force funds on the day indicates cautious attitudes among institutions, the rally driven by retail investors and hot money reflects market recognition of the company’s transformation results[2]. Against the backdrop of monthly doubled usage of AI application products and reshaped industry competition landscape, the stock is bullish in the short term, but attention should be paid to the impact of volume coordination and changes in capital flow on its sustainability.

Huatu Shanding delivered a strong performance today, showing a typical limit-up breakout pattern. From the trading data, the closing price of RMB 87.45 not only set a new record high, but also marked the company’s market capitalization breaking the RMB 17.2 billion threshold[1][3]. With a daily gain of 13.66%, it ranked among the top in the architectural decoration sector, while a turnover rate of 2.47% indicates relatively active market trading and good chip locking, with no signs of chip loosening caused by excessive volume expansion[2].

Notably, although the stock hit a limit-up, the architectural decoration sector saw a total net capital inflow of RMB 1.014 billion, while Huatu Shanding ranked 15th on the sector’s capital outflow list, with a net outflow of RMB 15.7715 million in main force funds[2]. This divergence phenomenon of “stock price hitting limit-up but main force funds outflowing” indicates that today’s rally was mainly driven by retail investors and hot money, with institutional investors holding relatively cautious attitudes. Such a capital structure may mean that there are still divergences in the market towards this stock, and institutions may be waiting for clearer performance verification signals.

From a technical perspective, the validity of the breakout needs to be verified after the stock price hits a record high. Generally, the first pullback or consolidation after a new high is a normal technical correction process, and the key lies in whether effective support can be obtained during the pullback. If the stock price can obtain support and stabilize at the 5-day moving average (around RMB 76) or the 75-78 RMB range, the uptrend is expected to continue; conversely, if it breaks below the key support level, attention should be paid to the risk of a short-term pullback.

Huatu Shanding’s fundamentals show a significant improvement trend, which provides a solid foundation for the stock price rally. In the first three quarters of 2025, the company achieved operating revenue of RMB 2.464 billion, a year-on-year increase of 15.65%; net profit attributable to parent company reached RMB 249 million, a sharp year-on-year increase of 92.48%[1]. The growth rate of net profit far exceeds that of operating revenue, indicating that the company has not only achieved scale expansion, but also realized efficiency improvement and significant improvement in profitability.

This earnings surge is mainly attributed to the continuous advancement of the company’s “All in AI” strategy. The company has built a trinity AI strategic layout covering students, content and tools, and launched about 20 AI products[1]. The usage of application products such as AI interview review and AI essay marking has continued to double monthly, among which the AI essay marking application processes and marks more than one million essays per month[1]. The application of AI technology in teaching research and quality inspection has significantly reduced operating costs - despite the substantial increase in the company’s operating revenue and class hours, the costs of quality inspection and class hour digestion have significantly decreased instead[1].

Another important support for the company’s transformation is the strategic cooperation with Fenbi Public Exam. In December 2025, Huatu and Fenbi Public Exam announced a strategic cooperation to jointly develop AI technology[1]. Wu Zhenggao, Chairman of Huatu Shanding, stated that both Huatu and Fenbi are leaders in AI applications in the industry, and this partnership will realize technology and resource sharing, which will not only accelerate the co-construction of AI business, but also help optimize the financial statements of the two companies from a cost perspective[1]. This cooperation helps the company integrate industry resources, reduce repeated R&D investment, and maximize synergies.

The strong performance of Huatu Shanding is inseparable from the backdrop of the continued boom in the public exam market. The civil service exam industry has seen unprecedented popularity in 2026, with multiple overlapping factors driving a surge in industry demand. First, 12.7 million fresh graduates have poured into the job market, a record high, bringing enormous employment pressure and exam preparation demand[1]. Second, more than 3.7 million people have shifted from postgraduate entrance exams to the national civil service exam, further expanding the base of exam preparation groups[1]. Against the backdrop of imbalanced supply and demand, the admission ratio of the national civil service exam is approaching 100:1, meaning that the vast majority of candidates need professional training to enhance their competitiveness[1].

From the perspective of industry competition pattern, AI applications are upgrading from auxiliary tools to a “game-changer” that determines the industry pattern[1]. At this transformative juncture, enterprises with technological R&D capabilities and scale advantages will gain significant competitive edges. Huatu Shanding’s AI R&D team is derived from two top industry R&D teams of Tsinghua University and Peking University, each with its own strengths, competing and cooperating with each other[1]. Such talent reserves have built a high technical barrier for the company, enabling it to maintain a leading position in the AI education track.

Huatu Shanding’s transformation from a traditional architectural design company to a vocational education provider has moved from the conceptual stage to the performance realization stage. The data of 92.48% year-on-year growth in net profit in the first three quarters of 2025 is of great significance: it not only proves the feasibility of the transformation, but also indicates that the company has found a new growth engine. For investors, this means that the company’s valuation logic needs to be re-examined - switching from the valuation system of the traditional architectural decoration industry to that of the education technology industry may bring a systematic improvement in valuation levels.

However, valuation reassessment is a gradual process. After the current stock price hits a record high, continuous verification of subsequent performance is needed to support the new valuation level. If the 2025 annual report and the 2026 first quarter report can maintain the high growth momentum, the valuation restructuring market is expected to continue; conversely, if the growth rate slows down, it may trigger valuation pullback pressure.

In the wave of AI-enabled vocational education, Huatu Shanding has shown unique competitive advantages. Compared with pure AI technology companies, Huatu Shanding has profound accumulation in the education industry and a large user base; compared with traditional education and training institutions, the company has formed a first-mover advantage in AI technology application. This combination of “education genes + AI capabilities” enables it to build differentiated competitiveness in the vertical field of AI education.

The company’s cooperation with Fenbi Public Exam further strengthens this advantage. The strong alliance between two industry leaders in the AI field helps accelerate technological innovation speed, reduce R&D costs, and optimize resource allocation. This cooperation model may become a new trend in the education and training industry, which is beneficial to the improvement of industry concentration and standardized development.

The phenomenon of net outflow of main force funds but stock price hitting limit-up on the day reveals the complexity of the market capital structure. Institutional investors may choose to take profits due to valuation concerns or position adjustment considerations, while retail investors and hot money may chase high driven by theme speculation sentiment. Such a capital game pattern may intensify short-term stock price fluctuations.

From a positive perspective, stable limit-up orders indicate strong market buying willingness; from a risk perspective, if there is a lack of incremental capital relay in the follow-up, the risk of short-term pullback cannot be ignored. Investors need to closely monitor changes in trading volume and marginal changes in capital flow.

: After the stock price hits a record high, the current valuation level may have fully reflected expectations. Sustained high growth in performance is needed to verify the rationality of the valuation. If the growth rate slows down in the 2025 annual report or 2026 performance, it may trigger a valuation pullback.

: The net outflow of RMB 15.7715 million in main force funds indicates cautious attitudes among institutional investors[2]. If institutions continue to sell and retail investors’ willingness to chase high weakens, the stock price may come under pressure. Follow-up attention should be paid to whether main force funds turn to net inflow.

: Limit-ups often attract the attention of speculative funds, and attention should be paid to the selling pressure caused by profit-taking. In particular, events such as restricted share unlocks and shareholder reductions may cause periodic shocks to the stock price.

: The public exam training market is highly competitive, and continuous tracking of market share changes is needed. If competitors catch up quickly in AI applications, the company’s competitive advantage may be weakened.

: The usage of about 20 AI products doubles monthly, showing strong market demand[1]. With the increase in AI product penetration, it is expected to continuously contribute to performance growth.

: The rigid demand brought by 12.7 million fresh graduates and 3.7 million people shifting from postgraduate entrance exams provides a broad market space for the company[1]. Against the backdrop of increasing employment pressure, the demand for public exam training is expected to remain highly booming.

: The cooperation with Fenbi Public Exam is expected to generate technological and resource synergies, reducing costs, improving efficiency, and optimizing financial statements[1].

: After the return of Huatu’s founder to take the helm, the layout and expansion of prefecture-level delivery bases have effectively consolidated the company’s business foundation, and its performance has returned to the top of the industry in 2025[1]. This improvement in market share is sustainable.

: Focus on changes in trading volume and capital flow. If trading volume continues to expand and main force funds turn to net inflow, the uptrend is expected to continue; if a shrinkage pullback occurs, the effectiveness of support levels needs to be observed.

: Focus on tracking the 2025 annual report data and the progress of AI product commercialization. Whether performance can be continuously verified is the key factor determining the mid-term trend.

: Focus on the implementation effect of the AI strategy and the sustainability of the public exam market boom. Against the backdrop of continuous iteration of AI technology and steady growth of market demand, the company is expected to obtain continuous growth momentum.

Huatu Shanding (300492) hit a limit-up to a record high today, which is the result of improved fundamentals, technical breakthroughs, and market sentiment resonance. The company’s excellent performance of 92.48% year-on-year growth in net profit attributable to parent company in the first three quarters of 2025 provides solid support for the stock price rally[1]. The continuous advancement of the “All in AI” strategy, the strategic cooperation with Fenbi Public Exam, and the demand growth brought by the continued boom in the public exam market together constitute the core driving force for the company’s medium and long-term growth[1].

From the capital perspective, the net outflow of main force funds shows relatively cautious attitudes among institutions, but the active participation of retail investors and hot money has driven the stock price to limit-up. Such a capital structure may intensify short-term fluctuations, but it also reflects market recognition of the company’s transformation results[2]. From a technical perspective, the validity of the breakout needs to be verified after the stock price hits a record high, and the key observation point is whether effective support can be obtained during the pullback.

Overall, Huatu Shanding is in a window period of improved fundamentals and valuation restructuring. Against the backdrop of the continued boom in the AI education track and the company’s performance verifying its transformation, this stock has certain medium and long-term allocation value. However, investors need to closely monitor changes in trading volume, capital flow, and subsequent performance to dynamically evaluate investment value.

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[1] Huatu Shanding: AI-Driven Business Consolidation, Performance and Market Capitalization Hit New Highs - Securities Market Red Weekly, January 8, 2026

[2] Architectural Decoration Sector Sees Net Capital Inflow of RMB 1.014 Billion Today - Eastmoney, January 8, 2026

[3] List of Stocks Closing at Record Highs - Eastmoney, January 8, 2026

[4] Huatu Shanding (300492) Corporate Announcements - Sina Finance