Analysis of Strong Performance of Quantong Hi-Tech: Driven by Sinochem Seed Group's Premium Acquisition and Policy Benefits

The core driver behind Quantong Hi-Tech’s recent strong performance is Sinochem Seed Group’s premium tender offer. Sinochem Seed Group plans to acquire 20% of the shares at RMB 11.85 per share (a 16.63% premium), with a total amount of approximately RMB 2.245 billion [2]. This move is directly related to the approaching deadline for fulfilling the commitment to resolve same-industry competition [3]. Stimulated by this news, the stock price rose by the daily limit to RMB 11.81 per share on November 21, with a single-day increase of 16.24% and a market capitalization increase of over RMB 1.5 billion [0]. In addition, as the seed industry revitalization policy continues to advance and the pilot of transgenic industrialization deepens, the company’s transgenic corn business has already generated revenue [0], forming a synergy between policy and the event.

1. Strategic Significance of the Acquisition
   : This premium acquisition is not only a financial investment but also a key step in resolving long-standing same-industry competition issues. The market expects it to promote the integration of seed businesses and unlock synergistic value [3].
2. Resonance Between Policy and Event
   : The acquisition event resonates with the seed industry revitalization and transgenic policies, becoming a short-term stock price catalyst [0].
3. Signal of Shareholder Confidence
   : The 16.63% premium level conveys the controlling shareholder’s confidence in the company’s future, significantly boosting market sentiment [1].

• Financial Pressure
  : In the first three quarters of 2025, revenue decreased by 5.9% year-on-year, and the net profit attributable to shareholders was a loss of RMB 180 million (an increase of 113.45% year-on-year) [0], indicating weak short-term profitability.
• Execution Uncertainty
  : The acquisition requires regulatory approval, and there is uncertainty about the subsequent integration effect [2].

• Integration Dividend
  : Business integration is expected to increase market share and operational efficiency [3].
• Policy Dividend
  : Transgenic industrialization and seed industry revitalization policies will continue to support industry growth [0].
• Defensive Attribute
  : Against the backdrop of a sluggish market, agricultural stocks may be favored by defensive funds [0].

Quantong Hi-Tech’s short-term strong performance is jointly driven by Sinochem Seed Group’s premium acquisition and policy benefits. In the short term, the acquisition event and policy synergy effects will maintain positive sentiment; in the long term, attention should be paid to the business integration effect after the acquisition, the expansion of transgenic business, and the improvement of financial conditions. Investors should balance short-term opportunities and long-term risks and rationally evaluate the investment value.