Analysis of Hangya Technology (688510) Strong Limit-Up: Driven by Aerospace Events and Supported by Fundamentals

Hangya Technology surged by the daily limit and entered the strong stock pool today, mainly catalyzed by multiple aerospace events:

is the direct trigger. On the morning of January 19, 2026, the Shenzhou-20 spacecraft return module successfully landed at the Dongfeng Landing Site [1][2]. This major aerospace achievement directly stimulated the overall strength of the aerospace sector. The Aerospace ETF (159227) rose by 4.11% on the day [3], and the industrial sector performed the best (+0.42%) [5], showing obvious sector momentum.

is the underlying supporting factor. China has submitted an application for frequency-orbit resources for 203,000 satellites to the International Telecommunication Union (ITU) [3][4], covering 14 satellite constellations, setting a historical record for scale. China has planned multiple giant satellite projects such as the GW Constellation and G60 Constellation, with a total planned satellite launch volume of 44,800. Based on the 5-year design life of low-orbit satellites, the steady-state replacement demand alone requires nearly 9,000 satellites per year, providing certain order support for the industry chain.

provide medium-term growth logic. The market focuses on the expected accelerated mass production pace of domestic large commercial aircraft and the accelerated independent controllability of commercial aero-engines during the 15th Five-Year Plan period [6], which has become an important growth driver for the military aerospace sector. Meanwhile, CICC pointed out that global defense spending will further rise, and the U.S. 2027 fiscal year defense budget is proposed to be increased to $1.5 trillion [2]. Amid the resonance of domestic and foreign demand, the industry’s prosperity continues to improve.

In terms of price performance, Hangya Technology shows a typical strong breakthrough trend [0]:

Time Horizon	Increase	Comment
Intraday	+15.01%	Strong limit-up, hitting historical high
5-Day	+14.71%	Strong upward momentum
1-Month	+46.74%	Obvious accelerating upward trend
3-Month	+48.51%	Medium-term trending rally
1-Year	+131.05%	Significantly outperformed the market

In terms of trading volume, 24.29 million shares were traded today, nearly 3.9 times the average daily volume (about 6.25 million shares), with a turnover rate of approximately 9.4% and transaction value of approximately RMB 870 million [0]. This volume-driven limit-up trend indicates that a large number of off-market funds are chasing the rally, and market attention is extremely high.

The current price of RMB 35.79 has approached the resistance level of RMB 37.34 (historical high), with the short-term support level at RMB 30.94 and the next technical target at RMB 39.38 [0].

Hangya Technology shows

in fundamentals, providing medium-to-long-term support for its stock price [7][8]:

: The company focuses on specialized R&D and manufacturing of key components for aero-engines and gas turbines. Aviation products account for 91.40% of revenue, and medical products account for 7.62%, with its main business highly concentrated in the aerospace field.

: As a domestic enterprise capable of mass-producing compressor blades via precision forging technology and supplying to leading international engine manufacturers, the company has entered the supply chain of the world’s four major aero-engine manufacturers (France’s Safran, UK’s Rolls-Royce, U.S.'s GE Aerospace) [7]. It supports many mainstream engine models including Safran’s LEAP, CFM56, GE Aerospace’s CF34, LMS-100, and AECC Commercial Aircraft Engine’s CJ1000/2000, for end-use in Boeing series, Airbus series, and COMAC’s domestic large aircraft.

: The company has an annual production capacity of 1.6 million compressor blades, and has maintained large-scale delivery capacity of over 1 million units annually since 2023 [8]. It holds a global market share of no less than 50% in the booster stage blade segment for LEAP engines, and this competitive barrier provides stable revenue for the company.

: The company undertakes simultaneous R&D and trial production tasks for components of AECC Commercial Aircraft Engine’s Yangtze series engines and multiple high-performance advanced domestic aero-engines under AECC [7], occupying an important strategic position in the domestic commercial aero-engine field.

: According to the 2025 Q3 report [9], the first three-quarter revenue was RMB 530 million, a year-on-year increase of 1.95%; net profit increased by 6.64% year-on-year after excluding share-based payment expenses; the gross profit margin was 38.32% and net profit margin was 15.65%, showing good profitability. However, it should be noted that Q3 net profit decreased by 16.04% year-on-year, mainly due to some products transitioning from R&D to mass production with yields ramping up [8].

The strong performance of Hangya Technology reveals the

. The breaking news of the Shenzhou-20 landing directly translated into the stock’s price performance within just a few hours, showing the sensitivity of the aerospace sector to policy news and major events. Such “event-driven rallies” are common in the military aerospace sector, but their sustainability usually depends on subsequent verification from industrial orders and fundamentals.

Another important correlation is the

. China’s application for 203,000 satellites is not only a milestone in the aerospace field but also a source of certain growth for the entire industry chain. From satellite manufacturing to launch services, and to upstream component supply, all links will benefit from this long-term trend. As a key component supplier for aero-engines, Hangya Technology does not directly participate in satellite manufacturing, but benefits from the improved prosperity of the overall aerospace industry and increased defense spending.

is an important feature of the current market. The industrial sector performed the best (+0.42%) today, and the Aerospace ETF attracted a total of RMB 107 million in the past 5 trading days [2], showing that capital is concentrating in this direction. CICC clearly stated that “we are optimistic about the long-term prosperity of the aerospace technology industry amid the resonance of domestic and foreign demand” [2], and continuous institutional attention provides capital support for the sector.

reflects professional investors’ recognition of the company’s value. The company received research from 55 institutions on October 31, 2025 [9], including well-known institutions such as CICC, CITIC Securities, Guotai Junan, Harvest Fund, and China Asset Management. Such high-profile institutional research usually indicates professional recognition of the company’s fundamentals, and may also be a leading signal for subsequent institutional allocation.

is an important strategic direction for the company. It is actively deepening cooperation with international customers such as Safran and Rolls-Royce, expanding product lines from blades to rotating structural components. This international customer structure not only provides stable revenue but also reduces single-market risks, while accumulating valuable technical and management experience for the company.

The strong performance of Hangya Technology has a positive impact on

. As a STAR Market stock, its 20% price limit allows for more drastic stock price fluctuations. Today’s limit-up reflects strong market attention to the aerospace track on the STAR Market, and this benchmark effect may drive other aerospace-related stocks on the STAR Market to follow suit.

From the perspective of

, Hangya Technology’s rally may trigger a revaluation of the entire aero-engine industry chain by capital. From upstream raw materials to midstream component manufacturing and downstream complete machine manufacturing, capital may deploy in a logical manner along the industry chain.

is the most prominent risk factor. The current P/E ratio is 82.83x and P/B ratio is 7.78x, significantly higher than the industry average [0]. A high valuation means the market has extremely high expectations for the company’s future growth, and any underperformance may trigger a valuation correction risk.

requires vigilance. The KDJ indicator shows K=79.0, D=77.7, J=81.7, and the RSI is in the overbought zone [0], with technical indicators signaling short-term correction pressure. Historical experience shows that a volume-driven limit-up is often followed by consolidation due to profit-taking.

is a potential risk factor. The company’s shareholders plan to sell a total of no more than 2.76% of the shares [10]. Against the backdrop of large-scale share unlocks, the sell-off may create periodic pressure on the stock price.

deserves attention. Q3 2025 net profit decreased by 16.04% year-on-year, with yields of some R&D projects ramping up, and gross profit margin may face periodic pressure [8]. Although the company stated that yields and efficiency will gradually improve as production stabilizes and scales up, short-term performance fluctuations still require attention.

include increased volatility brought by the 20% price limit, and operational uncertainties from characteristics common to STAR Market companies such as high R&D investment and rapid technological iteration.

is a certain opportunity. China’s application for 200,000 satellites marks a new phase for commercial aerospace, with satellite demand expected to further expand. As a key component supplier for aero-engines, Hangya Technology will indirectly benefit from the development of the entire industry.

brings incremental orders. The mass production pace of domestic large commercial aircraft is expected to accelerate during the 15th Five-Year Plan period, with a clear trend of independent controllability for commercial aero-engines. The company is deeply involved in the development of domestic commercial aero-engines and is expected to gain more supporting opportunities.

provides growth space. The company continues to deepen cooperation with international customers, expand product lines to rotating structural components, and is expected to increase the proportion of international business.

is expected to improve gross profit margin. The proportion of high-pressure compressor blades continues to increase; these products usually have higher technological content and gross profit margins, which is expected to have a positive impact on the company’s overall profitability.

Risk/Opportunity Type	Priority	Time Sensitivity	Urgency
Technical Overbought Correction	High	Short-term (1-2 weeks)	High
Yield Ramp-Up Progress	Medium	Medium-term (1-3 months)	Medium
Commercial Aerospace Orders	Medium	Medium-term (3-6 months)	Medium
Shareholder Sell-Off	Medium	Short-term (1-2 weeks)	Medium
Valuation Digestion	Medium	Medium-term (1-3 months)	Medium
Domestic Aero-Engine Breakthrough	Low	Long-term (1-2 years)	Low

Wuxi Hangya Technology Co., Ltd. (688510.SS) is a specialized manufacturer engaged in R&D, production and sales of key components for aero-engines and gas turbines, and medical orthopedic implant forgings. The company is listed on the STAR Market, with a current market capitalization of RMB 9.289 billion, a current share price of RMB 35.79, and a 52-week price range of RMB 14.51 to RMB 37.34.

: The company is a leading provider of key aero-engine components, deeply involved in the development of domestic commercial aero-engines, qualified as a supplier to the world’s four major aero-engine manufacturers (Safran, Rolls-Royce, GE Aerospace), holds a global market share of over 50% in LEAP engine blades, and has an annual production capacity of 1.6 million compressor blades.

: Multiple catalysts including the successful landing of Shenzhou-20, China’s application for 200,000 satellites, and expectations for the 15th Five-Year Plan policies have combined to drive the overall strength of the aerospace sector.

: The development trend of the commercial aerospace industry is clear, with accelerated mass production of domestic large commercial aircraft and accelerated independent controllability of commercial aero-engines, providing medium-to-long-term growth momentum for the company.

: The P/E ratio of 82.83x is significantly higher than the industry average, requiring time to digest the valuation.

: Both RSI and KDJ are in the overbought zone; after the volume-driven limit-up, attention should be paid to short-term correction risks.

: Yields of some R&D projects are ramping up, with Q3 net profit down 16.04% year-on-year and gross profit margin under pressure.

: Shareholders plan to sell no more than 2.76% of the shares.

Price Type	Price	Description
Strong Resistance	RMB 37.34	Limit-up level, historical high
First Support	RMB 30.94	Short-term correction observation level
Second Support	RMB 28.42	20-day moving average, medium-term trend support level
Stop-Loss Level	RMB 27.00	Reference level for trend investors
Target Level	RMB 39.38	Next target level indicated by technical analysis

This report aims to provide information collection, analysis and market background to support decision-making, and is not investment advice. It is not advisable to chase the rally after the sharp short-term increase; investors may wait for a correction to the support level (around RMB 30-31) before considering positioning; in the medium term, attention can be paid to sector rotation opportunities and the yield improvement progress of the company’s new products. Investors should make prudent decisions based on their own risk tolerance and investment objectives.