Shida Group (600734) Limit-Up Reason and Risk Analysis Report

Shida Group (600734) recent limit-up is mainly due to two catalysts:

1. Asset Acquisition Expectation
   : The company plans to acquire 95% equity of Fujian Shuchan Mingshang Technology at a transaction price of approximately 185 million yuan. Shuchan Mingshang owns an intelligent computing center with a computing power scale of 2000P, with a total investment of 550 million yuan and put into operation in September 2024.
2. AI Concept Linkage
   : Huawei will release AI container technology on November 21. The market regards Shida Group as a core target in the Huawei AI Container ecosystem. Coupled with the trend of independent and controllable domestic computing power, this has driven the stock price up.

1. Price and Trading Volume
   : The current stock price range is 4.20-4.62 yuan, with an increase of about 9.95%, and the trading volume reached 1.4317 million lots, indicating active short-term trading.
2. Dragon and Tiger List Data
   : Hot money from Zhuque Street participated in the transaction, reflecting the characteristics of short-term capital speculation.
3. Abnormal Fluctuation
   : It hit the limit up for two consecutive days on November 20 and 21, with a cumulative deviation of more than 20%, and an abnormal fluctuation announcement has been issued.

1. Acquisition Uncertainty
   : The acquisition of 95% equity of Shuchan Mingshang has uncertainties; follow-up progress should be noted.
2. Overvaluation
   : The company’s P/E ratio is 1618.21x and P/B ratio is 29.48x, far higher than the industry average (P/E 68.68x, P/B5.21x), with significant valuation bubble risk.
3. Chip Structure Risk
   : The over-allocation ratio of electronic and communication sectors in fund positions has reached a historical high, with complex chip structure, and there is short-term profit-taking pressure.

The internet service industry shows structural growth driven by AI computing power demand, and the domestic substitution process is accelerating. However, the market is becoming stricter in examining the matching degree between the valuation of the computing power sector and its fundamentals, so attention should be paid to the risk of sector fluctuations.