Deep Analysis of Driving Factors and Potential Risks for Shida Group (600734) Continuous Limit-Up

Shida Group (600734) has recently shown strong stock price performance, hitting the daily limit for two consecutive trading days [5][3]. Its driving factors can be summarized into four aspects:

1. Asset Acquisition Expectation
   : Plans to acquire 95% equity of Fujian Digital Industry Mingshang Technology for 184.6 million yuan, gaining 2000P intelligent computing center capacity [0], but this matter has not yet signed a formal agreement and there is uncertainty [1];
2. Technology Synergy Effect
   : As a core target in Huawei’s AI container ecosystem, it benefits from Huawei’s Flex:ai technology breakthrough [0][6];
3. Policy Background Support
   : Under the holding background of Fujian Big Data Group, the company undertakes the strategic mission of Digital Fujian [0];
4. Order Growth Driver
   : Won orders exceeding 600 million yuan within the year, such as Karamay Intelligent Computing Center (210 million yuan) and virtual power plant (35.98 million yuan), showing the effect of business transformation [0].
   Financially, in the first three quarters of 2025, revenue increased by 111.97% year-on-year to 135 million yuan, but the net profit attributable to shareholders widened to a loss of 87.57 million yuan [0], and profitability needs to be improved.

1. Business Transformation Logic
   : The company is transforming from a traditional IT enterprise to a core service provider in the digital economy. The gross profit margin of intelligent computing services is expected to exceed 40%, significantly higher than the traditional system integration business [0];
2. Valuation and Profit Mismatch
   : The current P/E ratio reaches 1618 times, far higher than the industry average, forming a contrast with the net profit loss [0][7];
3. Market Sentiment Catalyst
   : Acquisition news and Huawei’s technical positive news triggered market attention, and the stock price rose significantly in the short term, but we need to be alert to the risk of sentiment ebbing [3][4].

• Acquisition Uncertainty
  : The proposed acquisition has not yet signed a formal agreement, and there is a risk of termination or change [1];
• High Valuation Risk
  : The P/E ratio is significantly higher than the industry average, and there is a large risk of valuation bubble [0][7];
• Profit Pressure
  : Revenue grows but net profit continues to lose, and the profit model is not yet mature [0];
• Sentiment Fluctuation Risk
  : Short-term stock prices are driven by market sentiment, and the fluctuation range may be large [3][4].

• Intelligent Computing Capacity Expansion
  : After the acquisition is completed, the capacity of the intelligent computing center will be significantly improved, with great long-term growth potential [0];
• Deepening Huawei Ecosystem
  : Cooperation with Huawei’s AI container technology is expected to further expand business boundaries [6];
• Policy Dividend Release
  : Policies on digital economy and computing infrastructure continue to be implemented, which is beneficial to the company’s business development [0].

Shida Group’s recent strong stock price is mainly driven by acquisition expectations, Huawei’s technology synergy and policy background. The business transformation has achieved initial results but profits have not yet improved. Investors need to pay attention to the uncertainty of acquisition progress and high valuation risks, while tracking the expansion of intelligent computing business and policy implementation, and rationally evaluate investment value.