Analysis of Shaoyang Hydraulics (301079) as a Strong Stock: Aerospace Transformation Expectations Driven by Restructuring

Shaoyang Hydraulics (301079) surged 20.01% to hit the daily trading limit on January 7, 2026, closing at RMB 41.33, with a turnover rate of 48.99% and a trading volume of RMB 1.284 billion. It made it to the Dragon and Tiger List due to a daily increase of over 15% [3]. The company plans to acquire a 100% stake in Chongqing Xincheng Hangrui Technology Co., Ltd. for RMB 600 million to enter the aerospace special alloy sector, with a net institutional purchase of RMB 40.8972 million and participation in speculation by renowned hot money from Shanghai Songlin Road [5]. The strong performance of this stock is mainly driven by expectations of a major asset restructuring. However, the company’s current fundamentals are weak, with a net attributable profit of only RMB 6.3966 million in 2024. Investors need to be wary of uncertainties in restructuring approval and the risk of stock price overvaluation.

Shaoyang Hydraulics plans to acquire a 100% stake in Chongqing Xincheng Hangrui Technology Co., Ltd. by issuing shares and paying cash, with a transaction value of RMB 600 million. The acquisition plan has been accepted by the Shenzhen Stock Exchange [1][2]. The target company was founded in 2004, with a registered capital of approximately RMB 37.8277 million. Its main business is the R&D, production, and sales of metal forgings and castings, whose products are widely used in downstream industries such as energy, aviation, aerospace, and shipping. It is a national-level specialized, sophisticated, unique, and new “little giant” enterprise [4]. The counterparty to the transaction has promised that the cumulative net profit from 2025 to 2028 will not be less than RMB 165 million, and a difference compensation mechanism has been established to guarantee future performance [1][2].

According to pro forma data, after the completion of the transaction, the pro forma net profit from January to June 2025 will increase by 162.43%, and earnings per share will rise by 124.95%, which will significantly expand the company’s asset scale, operating revenue, and profitability [1][2]. From the perspective of industrial chain synergy, the target company’s technical accumulation in the aerospace special alloy sector forms perfect industrial chain synergy with Shaoyang Hydraulics’ existing hydraulic business, which can effectively expand the listed company’s business layout in the high-end manufacturing sector and reduce its reliance on traditional single business.

According to the data from the Dragon and Tiger List, the capital side of this stock shows a trend of joint pursuit by institutions and hot money [3]. Institutional seats recorded a total net purchase of RMB 40.8972 million, indicating professional institutions’ recognition of the restructuring expectations; renowned hot money from Shanghai Songlin Road (Lianchu Securities Shanghai Songlin Road Securities Business Department) made it to the buying list, with total purchases of RMB 354 million and total sales of RMB 146 million, showing strong enthusiasm from short-term capital participation [5]. A turnover rate of 48.99% indicates full turnover of chips and strong capital acceptance, but it may also signal that pressure for short-term profit-taking is accumulating.

The company’s main business is the design, R&D, production, sales, and technical services of hydraulic piston pumps, hydraulic cylinders, and hydraulic systems, belonging to the engineering machinery sector. In recent years, the company’s performance has continued to decline. From 2022 to 2024, its net attributable profit was RMB 50.13 million, RMB 6.58 million, and RMB 6.4 million respectively. In the first three quarters of 2025, the net attributable profit was only RMB 2.46 million, a year-on-year decrease of 85.46% [0]. The asset-liability ratio remains in the range of 45%-49%. Currently, the company’s profitability is weak and its static valuation is relatively high. The acquisition of Xincheng Hangrui will significantly improve the company’s profitability and asset quality.

: As can be seen from the Shenzhen Stock Exchange Interactive Platform, investors are highly concerned about the company’s business development after the acquisition of Xincheng Hangrui, especially the progress of the rocket grid fin business, cooperative relationships with aerospace-related enterprises, and the application prospects of hydraulic products in the rocket recovery field [6]. This reflects that the market’s pursuit of the aerospace concept of this stock has exceeded the scope of traditional hydraulic business, forming a dual driving force of theme speculation and value revaluation.

: If the restructuring is successfully completed, the company will transform from a traditional hydraulic equipment manufacturer to a comprehensive high-end manufacturing enterprise with aerospace special alloy capabilities, and its business structure will undergo fundamental changes. This transformation expectation is the main factor supporting the current stock price premium, but it also means a longer performance verification cycle and higher uncertainty.

: The joint buying by institutions and hot money shows that the market has formed a short-term consensus on this restructuring theme, but the ultra-high turnover rate of 48.99% indicates that long-short divergence still exists. Institutional capital focuses on medium- and long-term logic, while hot money focuses on short-term games. Subsequent differentiation in capital behavior may trigger increased stock price volatility.

Risk Type	Specific Content	Urgency
Restructuring Approval Risk	The transaction still requires approval at the shareholders’ meeting, review by the Shenzhen Stock Exchange, and registration approval from the China Securities Regulatory Commission	High
Performance Commitment Risk	There is uncertainty as to whether the target company can fulfill the cumulative net profit commitment of RMB 165 million for 2025-2028	Medium
Stock Price Overvaluation Risk	After consecutive daily limit-ups, the stock price may have fully priced in restructuring expectations, with limited fundamental support	High
Weak Fundamentals	The company’s net profit attributable to parent shareholders was only RMB 2.46 million in the first three quarters of 2025, reflecting weak profitability	Medium
Chip Loosening Risk	The 48.99% turnover rate indicates profit-taking pressure; investors should be alert to pullbacks	Medium

: Driven by restructuring expectations coupled with capital pursuit, the stock price is expected to maintain a strong trend. If the trading volume can remain at a high level (turnover rate above 30%) in the future, it indicates strong capital acceptance, and there is still upward momentum in the short term.

: If the restructuring plan is successfully approved within 1-2 months, coupled with the gradual release of the target company’s performance, the stock price may have further upside potential. The layout in the aerospace special alloy sector aligns with the general development trend of domestic military industry and commercial aerospace, providing long-term imagination space.

Focus should be placed on the following time nodes: the review progress of the Shenzhen Stock Exchange in late January, and the registration progress of the China Securities Regulatory Commission around February [0]. Before the approval result is clear, the stock price will continue to fluctuate under the influence of expectations. If the approval progress exceeds expectations, it may drive the stock price to rise further; if the approval is hindered or delayed, it may trigger a short-term pullback.

The strong performance of Shaoyang Hydraulics in this round is

, and the planned acquisition target’s layout in the aerospace special alloy sector provides significant valuation imagination space for the company [1][2]. On the capital side, institutions and hot money recorded a combined net purchase of over RMB 300 million, indicating active intervention by main capital [3][5]. However, the company’s current fundamentals are weak, with a net profit attributable to parent shareholders of only RMB 6.3966 million in 2024, and its static valuation is relatively high [0]. After consecutive daily limit-ups, the stock price may have fully reflected restructuring expectations. Coupled with the uncertainty of restructuring approval, investors need to carefully evaluate the risk-return ratio.

: The stock price hit a stage new high with a daily limit-up, breaking through the upper edge of the previous consolidation platform, with good volume-price coordination. However, the ultra-high turnover rate of 48.99% also means the risk of chip loosening. If the trading volume drops sharply and the turnover rate falls below 20% in the future, investors need to be wary of short-term adjustment risks. The key support level is in the range of RMB 35-38, and the key resistance levels are the daily limit price of RMB 41.33 and the previous high of RMB 45.

: The market has risks, and investment requires caution. This is an analysis report based on public information, and any information contained herein is for reference only and does not constitute investment advice. Please refer to the company’s announcements for specific details.

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[0] Jinling Analysis Database - Compilation of market price data and financial indicators

[1] Sina Finance - Analysis of Shaoyang Hydraulics’ Daily Limit-up on January 8, 2026 (https://finance.sina.com.cn/stock/aiassist/ydfx/2026-01-08/doc-inhfqcat5477173.shtml)

[2] NetEase Finance - Analysis of Shaoyang Hydraulics’ Daily Limit-up (https://www.163.com/dy/article/KIOJ53R105568W0A.html)

[3] Eastmoney - Dragon and Tiger List Data for Shaoyang Hydraulics (http://quote.eastmoney.com/sz301079.html)

[4] Phoenix Net - Announcement on Major Asset Restructuring of Shaoyang Hydraulics (https://i.ifeng.com/c/8kOkjjTBHbM)

[5] CNFOl - Dragon and Tiger List Data for Shaoyang Hydraulics on January 7 (http://sc.stock.cnfol.com/gushiyaowen/20260107/31923307.shtml)

[6] Securities Times - Investor Q&A for Shaoyang Hydraulics (https://www.stcn.com/quotes/index/sz301079.html)