Analysis of Jiumuwang (601566) Continuous Limit-Up: Significant Speculation Risks, Need to Alert to Deteriorating Fundamentals

Jiumuwang (601566) recorded 6 consecutive limit-ups from November 12 to 18, 2025, with a cumulative increase of 61.06%, significantly outperforming the Shanghai Composite Index (-1.57%) in the same period [0]. In terms of driving factors, the company recently became an official partner of the China National Garment Association (2025-2028) and entered the live-streaming e-commerce field [0], but these events did not bring substantial improvements to the fundamentals. On the contrary, the company’s performance in the first three quarters of 2025 was poor: operating revenue was 633 million yuan, down 6.02% year-on-year; non-net profit after deduction was a loss of 24.3396 million yuan, down 17.38% year-on-year [0]. The company has issued multiple announcements to warn of risks, clearly pointing out that the stock price has overheated market sentiment and high speculation risks [2][3][4][6], and the price-to-earnings ratio of 47.7 times is far higher than the industry average of 20.1 times [0], reflecting a serious divergence between the stock price and fundamentals.

This continuous limit-up is mainly driven by short-term speculative funds, not supported by fundamentals. The company’s self-inspection confirmed that there are no major matters that should be disclosed but not disclosed [0], further confirming the speculative nature. In addition, the Internet and software services sector has been active recently [1], which may have driven market attention to related concepts, but Jiumuwang’s main business (men’s clothing) has limited correlation with this sector [0].

: 1) High risk of stock price correction: Speculative market without fundamental support is often unsustainable; once speculative funds withdraw, the stock price may drop sharply [0]; 2) Valuation bubble: The current price-to-earnings ratio is significantly higher than the industry average, and the valuation has seriously overdrawn future growth expectations [0]; 3) Sustained performance decline: The company’s external operating environment has not changed significantly, and the prospect of subsequent performance improvement is unclear [0].

Jiumuwang (601566)'s continuous limit-up is a typical speculative market. Investors should remain cautious and avoid blindly chasing high prices. The company’s fundamental deterioration trend has not changed, and it has issued multiple risk warnings. Participating in such transactions requires full awareness of potential loss risks [0][5].