Analysis of Qiangrui Technology (301128)'s Strong Performance: Driven by Concept Overlay and High Earnings Growth, Beware of Short-Term Technical Overbought

Qiangrui Technology (301128.SZ) performed strongly on January 19, 2026, with a single-day stock price increase of 16.00% and turnover reaching 1.471 billion yuan, entering the strong stock pool [1][2]. This analysis is based on multi-dimensional data, systematically evaluating the reasons for its strong performance, technical and fundamental support, and sustainability judgment.

As Shenzhen Qiangrui Precision Technology Co., Ltd., the company’s main business covers the R&D, production and sales of precision testing equipment, automated equipment and heat dissipation products. Its current market capitalization is 11.759 billion yuan, and the stock price is 113.68 yuan, operating in the historical high range.

Qiangrui Technology’s strong performance stems from its unique concept overlay advantage, and all these concepts are at the current market hot spots [1][2]:

Concept Sector	Related Business and Strategic Value
Liquid Cooling Servers	Provides testing equipment and customized heat sink products for liquid cooling servers, directly benefiting from AI computing infrastructure construction
Foxconn Concept	One of its core customers, undertakes intelligent manufacturing orders for consumer electronics
Huawei Concept	An important supplier of Huawei’s mobile phones and network communication products, deeply involved in the Huawei industrial chain
BYD Concept	Exclusive supplier of automated testing lines for the performance of BYD’s “Sky Eye” high-level intelligent driving system
AI Servers	Benefits from the explosive growth of global computing power demand

These concepts form a resonance effect, enabling the company to continuously receive capital attention amid market hot spot rotation. The liquid cooling sector led the rally today stimulated by the positive news of Colossus 2 supercomputer, while BYD’s intelligent driving business is sought after by the market due to the expected increase in the installed volume of the Sky Eye system (700,000 sets of Plan B + 2.51 million sets of Plan C in 2025) [5].

The 2025 third quarterly report shows that the company has entered the earnings release period [3]:

Financial Indicator	Value	YoY Change
First Three Quarters Revenue	1.372 billion yuan	+74.72%
First Three Quarters Net Profit Attributable to Parent	116 million yuan	+46.06%
First Three Quarters Non-recurring Net Profit	112 million yuan	+48.62%
Q3 Single-Quarter Revenue	532 million yuan	+74.86%
Q3 Single-Quarter Net Profit	61.017 million yuan	+91.54%

The eye-catching data of 91.54% YoY growth in Q3 net profit is the core fundamental factor supporting the strong stock price. The company’s high-speed earnings growth mainly benefits from the superposition of multiple factors such as the booming demand for liquid cooling in AI servers, the delivery of BYD intelligent driving testing line orders, and full orders from the Huawei industrial chain.

The current stock price is operating in a key technical resistance zone [0]:

Resistance Levels:
├── Short-term Resistance: ¥114.14 (Pulled back after touching today)
├── Bollinger Upper Band: ¥116.40 (Strong technical resistance)
└── Institutional Target Average Price: ¥115.03

Support Levels:
├── 20-day Moving Average: ¥97.83
├── Chip Concentration Zone: ¥97.21
└── 30-day Low: ¥79.68

The 30-day price range is 79.68-116.00 yuan, and the current price is close to the upper edge of the range. The average chip cost is 97.21 yuan, and the current stock price of 113.68 yuan corresponds to a floating profit of about 17%, resulting in short-term profit-taking pressure.

Indicator	Value/Status	Signal Judgment
MACD	Golden Cross	🟢 Mid-term Trend Bullish
KDJ	K:56.2, D:38.1, J:92.5	🟡 J-value Overbought, Short-term Adjustment Pressure
RSI(14)	Overbought Zone	🔴 Risk Warning
Beta Coefficient	0.21	🟢 Relatively Small Fluctuation Against Index
Trend Judgment	Sideways Consolidation	🟡 No Clear Trend Direction

The MACD golden cross indicates a bullish mid-term trend, but the KDJ J-value touching 92.5 and RSI entering the overbought zone suggest high risk of short-term technical correction. A Beta coefficient of 0.21 means the stock has relatively small fluctuations compared to the market index, with relative defensive attributes during market volatility.

The turnover rate today is 15.07%, which is at a relatively high level; the average daily trading volume is 4.8 million shares, and today’s turnover is 1.471 billion yuan. The volume expansion coupled with the sharp stock price rise is usually a sign of short-term sentiment climax, and it is necessary to pay attention to whether the subsequent volume can be sustained.

Valuation Indicator	Qiangrui Technology	Industry Average	Evaluation
P/E (Dynamic)	62.39	137.5	Relatively Reasonable
P/B	10.84	5.13	Relatively High
P/S	6.88	—	Moderately High
ROE	13.08%	2.67%	Significantly Better Than Industry
Gross Margin	26.17%	27.79%	Close to Industry Level
Net Profit Margin	10.39%	4.37%	Significantly Better Than Industry
Asset-Liability Ratio	54.31%	—	Medium Level

Although the P/E valuation is higher than the historical average, it is still reasonable compared to the industry average. The company’s ROE and net profit margin are significantly better than the industry, showing strong profitability and competitive advantages.

Professional valuation based on the DCF model shows [0]:

Scenario	Valuation	Increase vs Current Price
Conservative Scenario	¥131.77	+15.9%
Base Scenario	¥223.21	+96.3%
Optimistic Scenario	¥587.07	+416.4%
Weighted Average	¥314.02	+176.2%

DCF valuation analysis indicates that the company still has nearly double the upside potential under the base scenario, suggesting that the current valuation has not yet fully reflected the company’s long-term growth value.

1. High-Quality Customer Resource Matrix
   : Stable customer base composed of leading enterprises such as Huawei, BYD, Foxconn, and Luxshare Precision [2][5]
2. Patent Technology Accumulation
   : 44 invention patents + 274 utility model patents + 137 software copyrights build a moat
3. High Prosperity Track
   : AI server liquid cooling and intelligent driving testing are both trillion-level high-growth tracks
4. High Certainty of Earnings Growth
   : Sustained demand growth from downstream leading customers provides earnings guarantee

According to capital flow data [4]:

• Main Force Net Inflow in Recent 5 Days: 47.7527 million yuan
  — Sustained net inflow shows active mid-term capital layout
• Main Force Net Outflow Today: 47.16 million yuan
  — Obvious signs of short-term profit-taking
• The main force’s control degree is relatively low, and the chip distribution is relatively dispersed

Institution	Rating	Research Report Date
Huaxin Securities	Buy	2025-09-01
Huaxin Securities	Buy	2025-05-06
Guoyuan Securities	Hold	2025-10-30
Guoyuan Securities	Overweight	2024-12-24

The institutional target average price is 115.03 yuan, slightly higher than the current stock price, showing that institutions are relatively cautious about the short-term trend but still have certain expectations for the medium and long-term value.

Qiangrui Technology’s strong performance today is not driven by a single factor, but by the combined force of multiple concepts amid market rotation. The liquid cooling sector rallied as a whole stimulated by the positive news of Colossus 2 supercomputer, while the company also has the robot concept, forming a linkage effect with Langwei Co., Ltd. [5]. This multi-concept overlay gives it higher exposure and capital attention in hot spot rotation.

As the supplier of testing lines for BYD’s “Sky Eye” intelligent driving system, the company has a significant first-mover advantage. According to the 2024 annual report disclosure, BYD plans to sell 5 million vehicles in 2025, and the installed volume of intelligent driving systems is expected to reach 3.21 million sets. The company expects revenue from this business to increase significantly in the next 1-2 years [2]. This business growth has not yet been fully reflected in the current stock price.

Although the current P/E ratio of 62.39 times is at a historical high, the 91.54% YoY growth of Q3 net profit indicates that earnings are rapidly catching up with the valuation. The 2025 annual report will be released on April 16, 2026 [5]. If the full-year earnings continue to maintain high growth, it will help digest the current valuation pressure.

Qiangrui Technology’s strong performance reflects the market’s continuous enthusiasm for the AI hardware industrial chain. From liquid cooling servers to intelligent driving testing, the company is positioned in two high-prosperity segmented tracks, with typical characteristics of “track-type investment”. This investment logic is sustainable in the current market environment.

As a ChiNext stock, Qiangrui Technology has higher growth expectations and risk preference premium. Today’s 15.07% turnover rate shows active market transactions, and the liquidity premium supports its valuation.

Both RSI and KDJ indicators show short-term overbought status, with the J-value touching the historical high zone of 92.5. Historical experience shows that such a combination of technical indicators often predicts short-term correction risks. Today’s 16% sharp rise may have partially overdrawn short-term gains.

The current P/E ratio of 62.39 times and P/B ratio of 10.84 times are both in the historical high range, which requires earnings growth or time to digest the valuation. If the 2025 annual report earnings are lower than expected, it may face valuation correction risks.

The main force had a net outflow of 47.16 million yuan today, combined with a cumulative net inflow of 47.75 million yuan in the recent 5 days, indicating the possibility of short-term capital profit-taking. When the current price is close to the technical resistance level, it is necessary to be alert to selling pressure.

A certain proportion of today’s 16% increase comes from market sentiment hype. Investors need to distinguish between two different types of growth drivers: earnings-driven and concept hype.

The installed volume of BYD’s intelligent driving system is expected to reach 3.21 million sets in 2025, and the company, as a core testing equipment supplier, will directly benefit. This business growth has high certainty, which is the core logic supporting the mid-term stock price rise.

The global AI computing infrastructure construction continues to advance, and the demand for liquid cooling servers is strong. The company’s layout in the liquid cooling testing equipment field will continue to benefit from the industry’s high growth.

The weighted average valuation based on the DCF model is 314.02 yuan, with an upside of 176% compared to the current stock price. Although there are uncertainties in the model assumptions, it shows that the medium and long-term value space is still sufficient.

Institutions such as Huaxin Securities maintain a Buy rating, showing professional investors’ recognition of the company’s fundamentals. Sustained institutional attention helps stabilize the stock price.

Dimension	Risk/Opportunity	Priority	Time Sensitivity
Technical Overbought	Risk	High	Short-term (1-2 weeks)
Valuation Digestion	Risk	Medium	Mid-term (1-3 months)
Intelligent Driving Volume Expansion	Opportunity	High	Mid-term (1-6 months)
Computing Power Demand	Opportunity	Medium	Long-term (6-12 months)

1. Earnings-Driven
   : Q3 2025 net profit increased by 91.54% YoY, with solid fundamentals
2. Concept Overlay
   : Liquid Cooling Servers + Huawei + BYD Intelligent Driving, resonance of multiple hot concepts
3. Capital-Driven
   : Main force net inflow of 47.75 million yuan in recent 5 days, sustained capital layout
4. Track Prosperity
   : Both AI computing power and intelligent driving are in a period of rapid growth

• MACD golden cross indicates a bullish mid-term trend
• Overbought RSI and KDJ-J indicate short-term adjustment pressure
• Current price is close to the 114-116 yuan resistance zone
• Support level at 97.83 yuan (20-day moving average), stop-loss reference at 105 yuan

• Q3 revenue of 532 million yuan, +74.86% YoY
• Net profit margin of 10.39%, significantly better than the industry average of 4.37%
• High-quality customer resources (Huawei, BYD, Foxconn)
• Rich patent accumulation, building a technical moat

: The probability of a pullback after a rally is high. Today’s excessive increase coupled with overbought technical indicators indicates a need for technical correction.

: It has sustained growth momentum, supported by the expected volume expansion of BYD’s intelligent driving business, the growth of AI server liquid cooling demand, and the expected high earnings growth.

: The 2026 mid-April annual report forecast and first quarterly report performance will be the key time to verify the company’s sustained growth capability.

• Suitable for phased layout after a pullback, not advisable to chase highs
• Focus on low buying opportunities in the 105-100 yuan range
• Set a stop-loss at 105 yuan to control risks
• Key track the progress of BYD’s intelligent driving system installed volume
• Pay attention to the order situation of the liquid cooling server business

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[0] Jinling Analysis Database - Technical Analysis, DCF Valuation, Financial Analysis Data

[1] Sina Finance - Qiangrui Technology Rises 16.00% with Turnover of 1.471 Billion Yuan

[2] Eastmoney - Qiangrui Technology Individual Stock Data

[3] Sohu - Analysis of Qiangrui Technology Capital Flow

[4] Sina Finance - Qiangrui Technology Individual Stock News

[5] Xueqiu - Qiangrui Technology(SZ301128)