Analysis of Zhenlei Technology (688270)'s Strong Performance: High-Risk Concept Stock Faces Dual Tests of Regulation and Valuation

Zhenlei Technology (688270) triggered abnormal stock trading volatility for three consecutive trading days from January 7 to 9, 2026, and its stock price entered the strong stock pool. As a core target of the commercial aerospace concept, the company has benefited from the dual drivers of favorable industry policies and a 598% surge in its first three-quarter performance. However, investors need to be highly vigilant: the company is currently under investigation by the China Securities Regulatory Commission (CSRC), its controlling shareholder was once placed under residential surveillance, and acting in concert parties cashed out approximately 444 million yuan before the sensitive period. Coupled with the high valuation risk of a 358x trailing price-to-earnings ratio, this stock is marked as

, it is recommended to distinguish between concept hype and fundamental investment and make prudent decisions. [1][2][3]

According to the “Announcement on Abnormal Stock Trading Volatility” released by the company on January 9, 2026, the cumulative deviation of Zhenlei Technology’s stock closing price increase reached 30% in three consecutive trading days (January 7, 8, and 9, 2026), touching the abnormal volatility standard stipulated in the “Trading Rules of the Shanghai Stock Exchange”. [1][2] This phenomenon reflects the concentrated pursuit of the commercial aerospace hotspot by market funds, and also shows that the stock’s price volatility has deviated from the conventional fundamental support range.

From the perspective of market performance data, Zhenlei Technology has increased by approximately 116.20% in the past month, by approximately 294.29% since 2025, and its single-month increase in December 2025 even exceeded 110%. Such a sharp rise not only benefits from the overall industry popularity but also accumulates significant correction risks. [6]

In 2024 and 2025, commercial aerospace was included in the “Government Work Report” for two consecutive years, confirming its status as a strategic emerging industry and a new growth engine. [4] 2026 has been called the “First Year of Qualitative Change” for China’s commercial aerospace by many institutions, and the industry is in a window period of triple resonance of policy, capital, and industry. As of January 9, 2026, the total scale of satellite industry-related ETFs and linked products reached 2.376 billion yuan, nearly doubling from 1.211 billion yuan at the end of 2025, indicating that capital continues to pour into this track. [4]

In December 2025, China applied to the International Telecommunication Union (ITU) for frequency-orbit resources for more than 200,000 satellites, marking the accelerated phase of satellite internet construction. [5] The successful orbital launch of the Zhuque-3 also marks a key breakthrough in solving the problem of insufficient large-capacity supply, laying a foundation for the batch launch of satellite constellations.

From the financial data perspective, Zhenlei Technology achieved operating revenue of 302 million yuan in the first three quarters of 2025, a year-on-year increase of 65.76%; net profit attributable to parent companies was 101 million yuan, a year-on-year surge of 598.09%. In the third quarter alone, operating revenue was 97.5104 million yuan, a year-on-year increase of 51.33%, and net profit was 38.6439 million yuan, a year-on-year increase of 337.49%. [7][8]

However, the company’s performance shows obvious cyclical volatility characteristics. In 2022, net profit attributable to parent companies was 108 million yuan (+8.98%), in 2023 it dropped to 72.4804 million yuan (-32.72%), and in 2024 it plummeted 75.37% to 17.8496 million yuan. Such sharp volatility reflects that the company is greatly affected by single major projects and product delivery cycles, and its performance predictability is low. [9]

What is more worthy of attention is the profit quality indicator: in the first half of 2025, net profit surged more than 10 times, but the net cash flow generated from operating activities was only 10.2114 million yuan, indicating weak profit quality and hidden dangers in cash collection capacity. [9]

: On December 26, 2025, Zhenlei Technology received the “Letter of Notification of Case Filing” from the China Securities Regulatory Commission (CSRC) and was filed for investigation on suspicion of illegal and irregular information disclosure. The investigation involves the issue of insufficient basis for recognizing 8.4265 million yuan in revenue of its wholly-owned subsidiary Hangzhou Chengxin Technology Co., Ltd. in 2022, accounting for 3.47% of the 2022 operating revenue, which led to inaccuracies in relevant financial data and disclosed information. [7][8][9]

: On September 5, 2025, the acting in concert parties of Yu Faxin (Chenxin Investment, Zhenlei Investment, Ruilei Investment) reduced their holdings by a total of 8.3052 million shares through inquiry transfer, accounting for 3.88% of the total share capital, with a transfer price of 53.52 yuan per share, cashing out approximately 444 million yuan. Nine days later, on September 21, the company disclosed that Yu Faxin, the controlling shareholder and chairman, was placed under residential surveillance by the Huangshi Municipal Supervisory Committee, and the residential surveillance was lifted on September 30. The coincidence between the share reduction time and the disclosure time of the residential surveillance incident has aroused strong market doubts about “advance knowledge”. [9][10]

It is claimed that Zhenlei Technology’s CX9840 series RF transceiver chips are the only domestic products that can replace the embargoed aerospace-grade chips of American ADI Corporation. The products have passed high-level reliability verification and have been applied to the direct satellite-to-phone project of the second-generation Star Network. [6][7][8] This technological barrier endows the company with scarcity in the aerospace-grade RF chip field, constituting an important support for long-term fundamentals.

However, from the perspective of revenue contribution, the company’s revenue scale is still relatively small (operating revenue in the first three quarters of 2025 was only 302 million yuan), and the commercial aerospace industry is still in the initial stage of industrialization. Restricted by factors such as rocket capacity, launch costs, and launch pads, the progress of batch launch constellations and their contribution to the company’s revenue are unpredictable. [1]

As of the date of the announcement, the company’s trailing price-to-earnings ratio is as high as 358.41 times, significantly higher than the industry average. [1] The high valuation is based on expectations of rapid future growth, while the uncertainty of the investigation conclusion, the inherent characteristics of performance volatility, and the unclear development progress of the commercial aerospace industry may trigger a downward shift in the valuation center.

According to public data, Taixin Small and Mid-Cap Selection Hybrid holds 9.18% (fund manager Dong Jizhou), Changxin Military Industry Quantitative Hybrid holds 6.44% (fund manager Song Haian), and Noah Research Selection Stock A holds 3.43%. [6] The professional holdings of institutions provide phased support for the stock price to a certain extent, but it is also necessary to be alert to the liquidity impact that may be brought by institutional position adjustments.

Risk Type	Assessment Level	Description
Regulatory Risk	🔴 Extremely High	CSRC investigation is ongoing, with significant uncertainty about the outcome
Governance Risk	🔴 Extremely High	Controlling shareholder’s residential surveillance + controversial share reduction by acting in concert parties, damaging the company’s governance image
Valuation Risk	🔴 Extremely High	358x PE ratio significantly deviates from the industry average
Performance Risk	🟠 High	High volatility, weak profit quality, limited revenue scale
Liquidity Risk	🟡 Medium	STAR Market stock, relatively good liquidity but inferior to the main board

Despite significant risk factors, the long-term development trend of the commercial aerospace industry still provides growth space for Zhenlei Technology. Demand growth in application scenarios such as satellite internet and direct satellite-to-phone is certain, and the company’s technological scarcity in the aerospace-grade RF chip field is expected to continue to benefit from industry expansion. If the investigation conclusion is favorable and performance is continuously verified, there is room for valuation repair.

In the short term, the stock price is significantly affected by market sentiment and concept hype, and attention needs to be paid to the disclosure time of the investigation results. The release of the 2025 annual report will be a key window to test the sustainability of performance. If the investigation result is unfavorable, it may trigger a sharp correction in the stock price; if performance growth is verified and the investigation is successfully concluded, it is expected to support the stock price to resume its upward trend after adjustment.

The recent strong performance of Zhenlei Technology is mainly driven by the

and the . The company’s CX9840 series RF transceiver chips have the scarcity of domestic substitution and are applied to the second-generation Star Network project, providing certain support for its technological fundamentals. However, the company is currently under CSRC investigation, its controlling shareholder was once placed under residential surveillance, and acting in concert parties cashed out approximately 444 million yuan before the sensitive period, so corporate governance risks cannot be ignored. The trailing PE ratio of 358 times is significantly high, performance is highly volatile, profit quality is questionable, and the commercial aerospace industry is still in the early stage, with unpredictable revenue contribution.

: This stock is a typical high-risk concept speculative target, suitable for investors with higher risk appetite and short-term trading capabilities. Conservative investors are advised to avoid it and wait for the investigation results to become clear. Participating investors should strictly set stop-losses, control positions, pay attention to the investigation conclusion and the performance verification of the 2025 annual report, avoid chasing highs, and participate with light positions on dips.

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[1] Shanghai Securities News - Announcement on Abnormal Stock Trading Volatility of Zhejiang Zhenlei Technology Co., Ltd.
[2] Eastmoney - Zhenlei Technology’s cumulative deviation of closing price increase exceeded 30% in 3 consecutive trading days
[3] National Business Daily - Zhenlei Technology: Commercial Aerospace is still in the initial stage of industrialization
[4] Securities Times - China’s Commercial Aerospace Welcomes “First Year of Qualitative Change”, Satellite ETF Scale Nearly Doubles at the Start of the Year
[5] National Business Daily - China Applies for an Additional 200,000 Satellites
[6] Xueqiu - Zhenlei Technology Stock Page
[7] Cls.cn - Suspected Illegal Information Disclosure! Commercial Aerospace Concept Star Stock Zhenlei Technology Under CSRC Investigation
[8] China Securities Journal - “3x Bull Stock” Zhenlei Technology Under CSRC Investigation
[9] 21st Century Business Herald - Chip New Star Suddenly Under Investigation! Controlling Shareholder Side Cashed Out 400 Million Yuan
[10] CNFOL - Zhenlei Technology Under Investigation, Controlling Shareholder Side Cashed Out 400 Million Yuan in September