Luokai Shares (603829) Limit-Up Analysis: Smart Grid Concept Driven and Market Sentiment Interpretation

Luokai Shares (603829), as a full-industry-chain product supplier for new power systems, mainly engages in core components of power equipment such as high-low voltage circuit breakers and vacuum circuit breakers, with more than 50 years of industry experience and a global market layout [0][2]. Recently, its stock price has performed strongly: from November 14 to 18, 2025, it has accumulated an increase of over 20% in three consecutive trading days, achieving two consecutive limit-ups [0]. Core driving factors include: 1) Rotation of the smart grid concept sector, where the company is clearly labeled as a concept stock in this sector [3]; 2) Against the background of the full outbreak of the AI application sector, market funds are rotating to related industry chains [5]; 3) Driven by short-term market sentiment, data from the Dragon and Tiger List shows high capital activity [4]. Although the company’s fundamentals are normal [0], its rolling P/E ratio reaches 34.52 times, which is higher than the industry average of 24.62 times [0].

1. Cross-sector Linkage Effect
   : The popularity of the AI application field has spread to the smart grid sector, reflecting the market capital’s pursuit logic for technology-related industry chains [5];
2. Valuation and Sentiment Divergence
   : The short-term rise in stock price is more driven by market sentiment rather than significant improvement in fundamentals, with valuation premium existing [0];
3. Short-term Concentrated Capital Inflow
   : Dragon and Tiger List data reflects active short-term speculative capital, which may exacerbate stock price volatility [4].

: 1) Overvaluation (PE is 39.8% higher than the industry average), with callback pressure [0]; 2) After consecutive limit-ups, it may attract regulatory attention, and the company has issued a stock trading abnormal fluctuation announcement [1]; 3) Profit-taking by short-term funds may lead to stock price volatility [4].
: 1) If the smart grid sector continues to receive attention, the company may benefit from the improvement of industry prosperity [3]; 2) The global market layout provides support for long-term growth [0][2].

Luokai Shares’ recent limit-up is mainly affected by the smart grid concept and market capital rotation. Its short-term performance is strong but valuation is high. Investors should pay attention to the sustainability of the sector, changes in capital flow, and the dynamics of the company’s fundamentals, and view short-term fluctuations rationally [0][1][4].