Jintaiyang (300606) Strong Limit Up: Driven by Memory Chip Concept and Risk Assessment

Jintaiyang (300606.SZ) surged to a limit up today and entered the strong stock pool, with its performance driven by multiple factors [1][2][3].

is the core driver behind Jintaiyang’s limit up.

According to the latest report from research firm Counterpoint Research, the memory chip market has entered a “super bull market” phase, and the current market even surpasses the historical high in 2018. The firm predicts that memory chip prices will soar 40%~50% in Q1 2026, and will rise by another approximately 20% in Q2 [1][2]. This significant improvement in the industry’s fundamentals has directly ignited market enthusiasm for stocks related to the semiconductor industry chain.

is another important factor.

Jintaiyang is classified as a “semiconductor materials concept stock” [3]. The semiconductor sector staged a broad rally today: in the materials segment, companies like Tianyue Advanced (688234.SH) and Jintaiyang (300606.SZ) hit limit up; in the equipment segment, companies like Jinhaitong (603061.SH) and Saiteng Co., Ltd. (603283.SH) hit limit up; in the packaging and testing segment, companies like Changdian Technology (600584.SH) and Tongfu Microelectronics (002156.SZ) also performed strongly [3].

cannot be ignored.

Jintaiyang is also classified under the machinery and equipment sector [4], which performed impressively today. Over 10 stocks, including Huning Co., Ltd. (300669), De’en Precision Industry (300780), and Jingce Electronics (300567), hit limit up or rose over 10%, forming a sector linkage effect.

further amplified the gains.

As a ChiNext-listed stock, Jintaiyang benefited from the institutional dividend of the 20% limit up today. A total of 11 stocks on ChiNext and the STAR Market hit the 20% limit up, concentrated in hard technology fields such as semiconductor materials and equipment, and robotics, which greatly stimulated the market’s enthusiasm for growth stocks [3].

[0].

From a multi-time dimension perspective: today’s gain reached +20.00%, hitting a 52-week high; the 5-day gain of +18.49% shows strong performance; the 1-month gain of +50.73% presents a strong upward trend; the 6-month gain of +56.04% maintains a strong pattern; the year-to-date (YTD) gain of +34.75% shows excellent performance since the start of the year. The stock price hit a high of ¥31.02 today, with a low of ¥26.18 (opening price). The closing price of ¥31.02 has significantly deviated from the 20-day moving average (¥19.02), with a deviation rate exceeding 60%.

[0].

Today’s trading volume reached 23.73 million shares, 3.4 times the average daily trading volume of 6.95 million shares, representing an extremely high volume magnification. This data indicates a large influx of incremental capital. Combined with the limit up order situation, the willingness of funds to scramble for shares is very strong. The surge in trading volume also means the turnover rate is at an extremely high level.

[0].

The MACD indicator shows no death cross signal yet, and the short-term bullish pattern remains unchanged; however, in the KDJ indicator, the K value is 55.1, D value is 37.9, and J value is 89.5, which have entered the overbought zone, indicating a risk of overheating in the short-term trend. The RSI(14) is in the normal range and has not issued an overbought signal. The beta coefficient is 0.46, indicating low correlation between the stock and the broader market with relatively independent price movements. The current trend is judged to be sideways consolidation with no clear direction, awaiting breakout confirmation.

[0]: The strong resistance level is ¥31.02 (today’s limit up price), with a high probability of being a short-term top; the first support level is ¥28.00 (retesting the integer level), the second support level is ¥25.50 (near the 5-day moving average, a watershed for the strong pattern); the strong support level is ¥22.00 (upper edge of the previous consolidation platform). A break below this level requires vigilance against a trend reversal.

[0][5].

Jintaiyang (Dongguan Jintaiyang Abrasive Co., Ltd.) is mainly engaged in the R&D, production, and sales of abrasive materials and coated abrasives, which are mainly used in fields such as wood processing, metal processing, and precision electronics. The current price-to-earnings ratio (P/E, TTM) is -344.67x, reflecting that the company is still in a loss; the price-to-book ratio (P/B) is 6.36x, relatively high; the earnings per share (EPS, TTM) is -0.09 USD, return on equity (ROE) is -2.36%, and net profit margin is -2.79%, indicating that profitability still needs improvement. However, the company’s current ratio is 1.72 and quick ratio is 1.26, indicating good short-term solvency with low debt risk classification [5].

[0].

Although the overall TTM remains in a loss, the latest quarterly financial reports show positive improvement signs: in Q2 FY2025 (2025-06-30), EPS was $0.04, turning profitable, with revenue reaching $149.61 million; in Q1 FY2025 (2025-03-31), EPS was $0.07 with revenue of $120.29 million; in Q4 FY2024 (2025-04-30), EPS was -$0.26 with revenue of $144.98 million. The company has achieved profitability for two consecutive quarters, with a 30% year-on-year revenue growth in Q2 FY2025, showing positive improvement signals in fundamentals.

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The classification of Jintaiyang as a “semiconductor materials concept stock” carries certain suspicion of concept speculation. The company’s main business is traditional abrasive materials, not semiconductor-specific materials, and its direct relevance to memory chip production is questionable. Jintaiyang’s products are more likely to benefit from the rotation of the pan-technology sector and the popularity of the machinery and equipment sector, rather than direct demand growth in the semiconductor industry. Investors need to carefully judge whether this concept classification is an act of “riding on hot trends”.

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Jintaiyang is covered by both the semiconductor materials and machinery and equipment sectors, allowing it to benefit from the overlapping popularity of the two sectors. Today’s expectation of a “super bull market” for memory chips not only boosted the semiconductor sector but also transmitted to the upstream materials and equipment fields through the industrial chain, forming a cross-sector capital agglomeration effect.

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With a beta coefficient of only 0.46, Jintaiyang has a low correlation with the broader market trends, and its ups and downs are driven more by its own concept and market sentiment. This characteristic means that the stock may show relatively strong resilience during market corrections, but may also face greater pullback risks when the concept fades.

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The market anomaly database shows that Jintaiyang’s anomaly index soared 49% [3], indicating that the stock has become a market focus. This high attention is both an opportunity and a risk: in the short term, it may attract more follow-up funds to push up the stock price, but once the popularity fades, the rapid withdrawal of funds may also lead to a sharp pullback.

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Jintaiyang’s main business is traditional abrasive materials, with weak direct relevance to semiconductors/memory chips. The current stock price increase is based more on concept expectations rather than actual performance support, carrying suspicion of “riding on hot trends” speculation. Any negative clarification regarding the relevance of the company’s actual business to semiconductors may lead to a sharp pullback in the stock price [3].

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The current P/B ratio reaches 6.36x. Amid a TTM loss and a relatively high price-to-sales ratio (P/S) of 7.56x, the valuation has significantly decoupled from fundamental support. Any underperformance or shift in market sentiment may trigger a stock price pullback due to valuation reversion.

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The J value of the KDJ indicator has reached 89.5, entering the overbought zone; after today’s limit up, the stock price has deviated significantly from the 20-day moving average (+63%), with a deviation rate exceeding 60%. Short-term technical indicators show the trend is overheated, with a pullback demand.

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Today’s trading volume is 3.4 times the average, and there is great uncertainty whether such a high level of volume can be sustained in the future. If tomorrow’s trading volume shrinks to less than 50% of today’s, vigilance is needed against weak upward momentum caused by volume contraction.

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Judging from the characteristics of surging volume but weak fundamentals, the possibility of short-term main force capital using the limit up to unload shares cannot be ruled out. Investors need to closely observe the follow-up absorption situation.

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If Counterpoint Research’s optimistic expectations for memory chip prices (a 40%~50% increase in Q1 2026 and a further 20% increase in Q2) are realized, it will bring substantial benefits to the entire semiconductor industry chain [1][2]. Jintaiyang, as a semiconductor materials concept stock, is expected to continue benefiting from the improvement of industry prosperity.

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The company has achieved profitability for two consecutive quarters with a 30% year-on-year revenue growth. If this trend can continue, it may gradually validate the logic of fundamental improvement and provide more solid support for the stock price [0].

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Against the backdrop of the overall strength of the semiconductor sector, Jintaiyang, as a relatively low-priced target in the sector, may attract the attention of rotating funds and experience a catch-up rally.

Jintaiyang (300606.SZ) surged to a 20% limit up today and entered the strong stock pool, driven jointly by the booming memory chip concept, the linkage of the semiconductor materials sector, the support of the machinery and equipment sector, and the institutional dividend of ChiNext’s 20% limit up mechanism [1][2][3][4]. Technically, the stock price hit a 52-week high with trading volume surging 3.4 times, but the KDJ indicator signals short-term overbought risk [0]. Fundamentally, the company is still in a loss but has seen a profit inflection point in the latest quarter, achieving profitability for two consecutive quarters with a 30% year-on-year revenue growth [0][5].

Key risks to focus on: questionable authenticity of concept speculation (limited relevance of main business to semiconductors), valuation decoupling from fundamentals (relatively high P/B ratio of 6.36x), short-term technical overbought (J value of 89.5), and questionable sustainability of trading volume. On the opportunity side, the expectation of a “super bull market” for memory chips, profit inflection point confirmation, and the possibility of catch-up in sector rotation deserve attention.

: ★★★☆ Relatively strong – The memory chip concept is in the “super bull market” expectation, and the popularity of the semiconductor sector is expected to last 1-2 weeks. Today’s volume surge indicates active capital scrambling for shares, so attention should be paid to tomorrow’s opening absorption situation.

: ★★★☆☆ Neutral-bullish – It is necessary to observe whether trading volume continues to expand, and be vigilant against capital diversion caused by sector rotation. If the semiconductor sector continues to strengthen, the concept is expected to spread.

: ★★☆☆☆ Cautiously wait-and-see – The company’s relevance to the semiconductor concept is questionable, fundamentals have not fully improved, and valuation is decoupled from performance support. It is recommended to only conduct short-term speculation and not hold for the long term.

: Whether tomorrow’s trading volume can be maintained (vigilance is needed if it is less than 50% of today’s), whether the limit up orders are firm, the sustainability of the semiconductor sector, and whether the company has performance forecasts or material disclosures.

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: This analysis is only an objective statement based on public information and does not constitute investment advice. Investors should make independent judgments. The stock market is risky, and investment requires caution. Jintaiyang is currently a target with high suspicion of concept speculation, and the risk of chasing high prices is high. Prudent operation is recommended.