Analysis of the Tianpu Co., Ltd. Incident and Valuation Bubble Identification Methods

Based on the information retrieved, we provide an in-depth analysis of the Tianpu Co., Ltd. incident and methods for identifying valuation bubbles.

Tianpu Co., Ltd. (605255.SH) is a traditional auto parts enterprise mainly engaged in the R&D and manufacturing of rubber hoses and fluid pipeline systems for automobiles. In August 2025, Zhonghao Xinying, an AI chip enterprise, obtained control of the company via “agreement transfer + capital increase”, after which the company’s stock price began a sharp upward surge.

From late July to late December 2025, Tianpu Co., Ltd. recorded a cumulative increase of 1631.69%, becoming the second-best performing stock on the A-share market in 2025, with its market value skyrocketing from less than RMB 1.7 billion to RMB 29.2 billion [1][2]. During this period, the company issued 26 abnormal fluctuation announcements and was suspended for verification 5 consecutive times due to trading limit-ups.

On January 9, 2026, the CSRC officially launched an investigation into the company on suspicion of material omissions in its stock trading abnormal fluctuation announcements [3]. The core of the investigation is: while the company stated in its abnormal fluctuation announcements that “it has no plans to carry out artificial intelligence-related business”, it established a subsidiary with AI-related business in its scope of operations and rapidly changed its own business scope in a short period. This behavior is deemed likely to mislead investor decisions [4].

Indicator	Tianpu Co., Ltd. Data	Industry Average	Bubble Identification
Price-to-Earnings Ratio (P/E)	898.58x	Approximately 15-25x	Severely Deviated
2025 First Three-Quarters Net Profit	RMB 17.85 million	-	Down 2.91% YoY
2024 Net Profit	RMB 33.066 million	-	No Significant Improvement in Fundamentals

: When a stock’s P/E ratio exceeds 3-5 times the industry average and lacks performance support, the risk of a valuation bubble is extremely high [5].

Tianpu Co., Ltd. recorded a full-year increase of 1631% in 2025, but during the same period:

• Revenue decreased by 4.98% year-over-year
• Net profit decreased by 2.91% year-over-year
• Its core business remained traditional auto parts manufacturing

: When a stock’s price increase far outpaces its performance growth by multiple times or even dozens of times, it usually indicates that the valuation has decoupled from fundamentals [6].

The Tianpu Co., Ltd. case reveals a typical “hot topic chasing” scheme:

1. Establish a subsidiary with sensitive concept-related business
   : On December 26, 2025, it established Hangzhou Tianpu Xincai Technology, whose business scope includes “artificial intelligence theory and algorithm software development” and other related businesses
2. Rapidly change business scope
   : After being reported, it changed its business scope to “rubber product manufacturing” on December 31
3. Contradiction between official denials and actual actions
   : It repeatedly stated that “it has no AI business plans” but established a related subsidiary

: Listed companies that exhibit behaviors such as “frequent concept switching”, “selective disclosure”, or “contradictions between announcements and actual actions” require high vigilance [7].

Signal Type	Tianpu Co., Ltd. Performance	Risk Level
Number of Abnormal Fluctuation Announcements	26	Extremely High
Number of Suspensions for Verification	5	Extremely High
Change in Number of Shareholders	Increased by 51% (9,621 shareholders)	High
Change in Institutional Holdings	New positions held by Galaxy, China Merchants, Goldman Sachs, etc.	Need Vigilance

1. Verify the authenticity of business transformation
   : Focus on whether the company has relevant technology, personnel, and asset reserves
2. Pay attention to the content of regulatory inquiry letters
   : Exchange inquiries often reveal issues that the company has not fully disclosed
3. Be vigilant against targets with P/E ratios far exceeding the industry average
   : High valuations require high growth to support them
4. View concept speculation rationally
   : Popular concepts such as AI and semiconductors are often accompanied by valuation bubbles

[1] Jiemian News - “16x Surge Stock” Tianpu Co., Ltd. Suspected of Material Omissions in Information Disclosure, Officially Under Investigation (https://view.inews.qq.com/a/20260110A01QHX00)

[2] 21st Century Business Herald - Investigation Launched! 16x Surge Stock Involved in Material Omissions, Who is “Dancing on the Edge of a Knife”? (https://www.21jingji.com/article/20260112/herald/6a4cf5e99f27b24e395ab03d38a3684c.html)

[3] Sina Finance - “16x Surge Stock” Tianpu Co., Ltd. Suspected of Material Omissions in Information Disclosure, Officially Under Investigation (https://finance.sina.com.cn/jjxw/2026-01-10/doc-inhfurht2112452.shtml)

[4] The Economic Observer - “AI Concept” Backfires, Tianpu Co., Ltd.'s Capital Puzzle Investigated by CSRC (https://finance.sina.com.cn/roll/2026-01-11/doc-inhfxmcp3809532.shtml)

[5] Eastmoney Wealth Account - In-Depth Interpretation! The 16x Surge Stock Collapses! CSRC Launches Investigation, AI Behind the Material Omissions… (https://caifuhao.eastmoney.com/news/20260109204008326737700)

[6] Eastmoney Wealth Account - The Bubble is About to Burst! Tianpu Co., Ltd. Resumes Trading at RMB 218, Backdoor Listing Story Collapses and It’s Under Investigation (https://caifuhao.eastmoney.com/news/20260111202738039577420)

[7] Sina Finance - “16x Surge Stock” Tianpu Co., Ltd. Suspected of Material Omissions in Information Disclosure, Officially Under Investigation (https://finance.sina.com.cn/jjxw/2026-01-10/doc-inhfurht2112452.shtml)