Analysis of Strong Performance of Shens Electronics (300479): Short-Term Rally Driven by Policy Catalysts and Thematic Plays

This analysis is based on reports from multiple media outlets including Sina Finance [1][2][3][4] and NetEase [5] on January 15, 2026. Shens Electronics performed strongly that day, with its share price closing at RMB 23.15, surging 12.05% and hitting the daily limit. The main driving factors include: the policy benefit from Jiangsu Province’s issuance of the “AI+” Action Plan, the company winning a large RMB 670 million low-altitude economy order, obtaining 10 AI-related technical patents, and industry catalysis brought by the convening of the 2nd China eVTOL Innovation and Development Conference. Technically, the stock shows a pattern of coexisting MACD golden cross and KDJ overbought status. Fundamentally, it faces pressures from extremely high valuation (195.94x PE) and losses for three consecutive quarters. Overall, the current rally is mainly driven by policies and themes with limited fundamental support, and the short-term correction risk is higher than the probability of further upside.

On January 15, 2026 (Thursday), Shens Electronics entered the strong stock pool, with its share price performing strongly that day [1][2].

On December 30, 2025, Shens Electronics’ board of directors approved the winning bid for the low-altitude support facility construction project of Jinan Digital Low-Altitude Flight Management Service Platform. The connected transaction amount is approximately RMB 670 million, and the company clearly stated that the project “will play a positive role in promoting business development in the low-altitude economy sector” [3]. On January 12, 2026, the technical indicator MACD formed a golden cross, and the short-term bullish trend began to strengthen [0][5]. On January 15, 2026, multiple positive factors overlapped, and the stock price soared to the daily limit on heavy volume and entered the strong stock pool [1][2][4][5].

According to Sina Finance reports, the Jiangsu Provincial Government issued the “Jiangsu Province ‘AI+’ Action Plan”, which clearly proposes to implement the AI-empowered education initiative and promote new models such as intelligent learning companions and intelligent teachers [1]. This policy drove the overall strength of the AI application sector, and Shens Electronics, as an AI application thematic stock, directly benefited. Notably, the ChiNext Index fell 1.02% that day, and popular sectors such as AI applications and commercial aerospace saw sharp corrections, but Shens Electronics rose against the trend, showing strong resilience and capital attention [1].

The core catalyst for this strong performance comes from the company’s winning bid for the low-altitude support facility construction project of Jinan Digital Low-Altitude Flight Management Service Platform at the end of 2025. According to the company’s announcement, this is a connected transaction (Chairman Yan Long abstained from voting), with a total winning bid amount of approximately RMB 670 million [3]. The company clearly stated that this project will positively promote its business development in the low-altitude economy sector. From a strategic perspective, this order marks a major breakthrough for Shens Electronics in the emerging low-altitude economy sector, which has been included in the national strategic plan and has broad development space in the future.

According to analysis reports from NetEase [5], Shens Electronics obtained 10 AI-related patents at once, significantly enhancing the company’s technical barriers and industry competitiveness. The concentrated acquisition of these patents not only strengthens the company’s technical reserves but also lays a foundation for future business expansion in the AI application sector. Against the background of obvious valuation premiums for AI technology companies in the current market, patent accumulation has become an important factor supporting the stock price.

The 2nd China eVTOL Innovation and Development Conference was held in Shanghai on January 15, 2026 [4], focusing on technological breakthroughs and commercialization of electric vertical take-off and landing (eVTOL) aircraft. As a low-altitude economy thematic stock and a component of the CSI General Aviation Thematic Index, Shens Electronics received high market attention. Among the components of the CSI General Aviation Thematic Index, Shens Electronics led the gains with a 15.20% increase that day [4], showing the market’s enthusiasm for the low-altitude economy sector.

According to capital flow data from Eastmoney [5], main force capital had a net inflow of over RMB 50 million into Shens Electronics on January 15, becoming an important force driving the stock price to the daily limit. The entry of large-scale capital not only provides direct buying support but also sends a positive signal to the market, attracting more follow-up capital participation.

In terms of price trend, Shens Electronics has performed extremely strongly recently. Over the past month, the stock price rose from RMB 18.28 to RMB 23.15, a cumulative increase of 26.64%; the 5-day increase reached 20.26%, and the monthly increase was 26.43% [5]. The current price is only about 10% away from the 52-week high of RMB 25.80, indicating that the stock price is challenging historical highs.

Trading volume saw an abnormal surge. The trading volume on the day reached 57.32 million shares, while the average daily trading volume is only 7.33 million shares, representing a 12.6x increase from the average [5]. Such a sharp volume surge usually indicates intense capital game and great divergence between bulls and bears. From a positive perspective, a volume-driven daily limit may signal the start of a new uptrend; from a risk perspective, it may also be a signal that main force capital is taking the opportunity to unload positions.

Indicator	Value/Status	Signal Interpretation
MACD	Golden cross formed on January 12	Short-term bullish trend strengthened, but the golden cross has just formed and needs validity confirmation [0][5]
KDJ	K:79.7, D:81.0, J:77.1	Clearly entered the overbought zone, potential short-term correction pressure [5]
RSI(14)	Overbought zone	Technical overbought risk exists
Beta	0.02	Extremely low correlation with the broader market, showing an independent trend [5]

The MACD indicator formed a golden cross on January 12, which is a short-term bullish signal, usually indicating that upward momentum is strengthening. However, the KDJ indicator is simultaneously in the overbought zone, with K value 79.7, D value 81.0, and J value 77.1 all in the high range [5]. This overbought status indicates that the stock price may face technical correction pressure in the short term. There is a certain contradiction between the signals of the two indicators, which needs to be verified by subsequent trends.

From the perspective of support and resistance levels, the key price levels facing Shens Electronics are as follows: RMB 24.79 is the daily limit price of the day, forming a strong short-term resistance level; RMB 25.53 is the technical analysis target price [5]; RMB 19.95 is a strong support level [0]; RMB 25.80 is the 52-week high and also the all-time high. The current stock price is near the key resistance zone, and whether it can break through RMB 24.79 and challenge the previous high will be an important reference for judging short-term trends.

From a fundamental perspective, Shens Electronics’ financial data shows obvious risk characteristics. According to data from the Jinling Analysis Database [0], the company’s current trailing twelve months (TTM) price-to-earnings (PE) ratio is as high as 195.94x, far exceeding the industry average, indicating that the market has extremely high expectations for the company’s future growth, but also means that the valuation has been overdrawn. The price-to-book (PB) ratio is 10.37x, which is at a high level; the return on equity (ROE) is only 4.69%, which is relatively low; the net profit margin is 2.25%, also at a relatively low level. These data collectively reveal a core issue: there is a large divergence between the company’s profitability and its valuation level.

More worrying is the company’s recent profit performance. According to analysis data [5], the company has reported losses for three consecutive quarters: the net profit was negative in Q3 2025 (-RMB 0.24), negative in Q2 2025 (-RMB 0.15), and also negative in Q1 2025 (-RMB 0.15) [5]. Only Q4 2024 saw a profit (RMB 0.65). This state of continuous loss stands in stark contrast to the strong stock price performance, reflecting that the current rally is more driven by expectations and themes rather than fundamental improvement.

Despite facing profit pressure, Shens Electronics still has some positive factors worthy of attention. First, the company won a large RMB 670 million low-altitude economy order [3], which is expected to bring performance support in the future. Second, the company is laying out its business in the smart medical sector, optimizing its business structure by transferring equity in affiliated companies to its wholly-owned subsidiary [3]. Third, the company obtained 10 AI-related patents [5], improving its technical competitiveness. Finally, both artificial intelligence and the low-altitude economy align with national strategic directions, and policy support is expected to continue.

However, we must clearly recognize the fundamental risks faced by the company: the valuation level is extremely high, with a PE ratio close to 200x, which means that extremely high performance growth is required to support the current stock price; the revenue scale is limited, with Q3 2025 revenue of only RMB 37.39 million [5], which is difficult to support the high valuation; continuous losses indicate that the company’s business model is not yet mature, and its profitability needs to be verified.

: The current 195.94x PE ratio far exceeds the industry average, and the stock price has overdrawn future growth expectations. Against the background of the company’s unimproved profitability, high valuation means greater correction risk.

: Both the KDJ and RSI indicators are in the overbought zone [5], with relatively large short-term technical correction pressure. Considering the 12% single-day increase and 26% monthly increase, profit-taking may trigger a sharp correction.

: The company has reported losses for three consecutive quarters [5], and fundamental improvement has not yet been verified. There is uncertainty about whether the large order can be converted into actual performance growth, which needs to be verified by subsequent financial reports.

: The current stock price is more driven by policies and themes rather than substantive fundamental improvement. Once market sentiment shifts, the stock price may face a sharp adjustment.

: The RMB 670 million large order marks the company’s strategic breakthrough in the low-altitude economy sector [3]. As a national strategic emerging industry, the low-altitude economy has broad development space in the future. If the company can successfully seize this opportunity, it is expected to achieve a performance inflection point.

: The company obtained 10 AI-related patents [5], forming a certain accumulation at the technical level. As AI application implementation accelerates, technical reserves may be converted into actual competitiveness.

: Both artificial intelligence and the low-altitude economy are in a policy honeymoon period, and policy support is expected to continue to provide positive catalysis for the company.

From the comparison of risks and opportunities, risk factors dominate in the short term. High valuation, overbought technical indicators, and thematic speculation characteristics all point to the judgment of greater short-term correction risk. However, from a medium- to long-term perspective, if the company can successfully convert the large order into performance growth and achieve a substantive breakthrough in the AI technology field, the current valuation may be supported to a certain extent. The key lies in whether subsequent fundamentals can keep pace with the stock price rise.

Scenario	Probability	Expected Performance
Inertial Upsurge	Medium-High	If trading volume can be maintained, it may challenge the 52-week high of RMB 25.80
Technical Correction	Medium-High	Severe overbought status makes it highly likely to retest the support level of RMB 21-22
High-Level Volatility	Medium	Profit-taking and new capital entry will lead to a volatile pattern

Overall judgment: Under the current overbought status, the probability of a technical correction is slightly higher than that of an inertial upsurge. If trading volume shrinks significantly on January 16, the correction probability will further increase.

The medium-term trend will depend on the following key variables: whether trading volume can continue to expand; whether low-altitude economy policies continue to catalyze; and whether the company’s fundamentals show signs of improvement. It is expected that within 1-4 weeks, the probability of the stock price returning to consolidation after a sharp short-term rise is high. The release of the Q4 2025 financial report in March-April 2026 will be a key test, and whether the company can achieve profit improvement will directly affect the medium-term trend.

: This round of rally is mainly driven by policy catalysts (Jiangsu Province’s “AI+” Action Plan) and thematic speculation (low-altitude economy, eVTOL) rather than substantive fundamental improvement. Technically, the stock is in an overbought state, and the short-term correction risk is higher than the probability of further upside. There is uncertainty about whether the large order can be converted into actual performance growth, which needs to be verified in the future.

Suggestions vary for different types of investors: Trend traders can set a stop loss (RMB 21-22) and trade with the trend, but need to closely monitor changes in trading volume; Value investors should mainly wait and see as the current valuation lacks a margin of safety, and make decisions after fundamental verification.

Shens Electronics (300479) surged to the daily limit on January 15, 2026 (closing at RMB 23.15, with a 12.05% increase) and entered the strong stock pool. Driving factors include: policy benefit from Jiangsu Province’s issuance of the “AI+” Action Plan, winning a large RMB 670 million low-altitude economy order, obtaining 10 AI-related patents, and catalysis from the convening of the eVTOL Innovation Conference. Technically, the MACD golden cross (formed on January 12) indicates a short-term bullish trend, but the KDJ overbought status (K:79.7, D:81.0, J:77.1) foreshadows correction risk. Fundamentally, the company faces pressures from a 195.94x high valuation and losses for three consecutive quarters. Overall judgment: it is a momentum-driven rally with high short-term correction risk, and fundamental support needs to be verified. Investors should maintain a cautious attitude.