Comprehensive Analysis Report on the Strong Performance of Longpan Technology (603906)

Longpan Technology (603906) entered the strong stock pool and hit the daily limit on December 3, 2025. The core driving factors are consecutive large-scale long-term orders for lithium iron phosphate cathode materials and the industry price hike trend: 1) The company’s holding subsidiary signed a 2026-2030 agreement with Sunwoda for 106,800 metric tons of lithium iron phosphate cathode materials, valued at 4.5-5.5 billion yuan [1][2]; 2) Cumulative long-term orders signed in Q4 exceeded 50 billion yuan, setting a new industry record [1]; 3) Collective price hikes in the lithium iron phosphate industry are beneficial to the company’s profits [1].

The stock price quickly hit the daily limit after opening on that day, closing at 23.41 yuan with an increase of 10.01%. The trading volume was 48.94 million shares, basically flat with the average volume [0]. Technical indicators show a recent breakthrough from a sideways trend, approaching the resistance level of 24.15 yuan. Meanwhile, both the KDJ (J value: 110.7) and RSI indicators issued overbought warnings, with the support level at 19.72 yuan [0].

As a lithium iron phosphate cathode material supplier, the company’s downstream clients include leading manufacturers such as CATL and Sunwoda [1], with strong industry competitiveness. In the first three quarters, revenue reached 5.825 billion yuan, a year-on-year increase of 2.91%, and net profit was a loss of 110 million yuan but narrowed significantly year-on-year [2]. In terms of financial indicators, the current P/E (TTM) is -31.91, P/B is 5.14, and liquidity indicators (current ratio: 0.88, quick ratio: 0.75) face certain pressure [0].

1. Order-Driven Valuation Repair
   : Over 50 billion yuan in long-term orders provide stable support for future revenue, driving market expectations of profit improvement and facilitating valuation repair [0][1][2].
2. Resonance of Industry Trends and Corporate Advantages
   : Price hikes in the lithium iron phosphate industry and the company’s leading client resource advantages form a synergy, strengthening the fundamental logic of stock price increases [1][0].
3. Game Between Technical and Fundamental Aspects
   : Short-term overbought signals and long-term order support form a game; attention should be paid to order execution and progress towards profitable operations [0][1][2].

1. Short-Term Correction Risk
   : Technical indicators are overbought, and the stock price is close to the resistance level, which may lead to a short-term correction [0].
2. Profit Uncertainty
   : Current net profit is still negative; future performance growth depends on the sustainability of order execution and industry price hikes [0][2].
3. Industry Competition Pressure
   : The lithium iron phosphate industry is highly competitive, and price fluctuations may affect profit levels [0].

1. Growth Potential from Sufficient Orders
   : Over 50 billion yuan in long-term orders will provide guarantees for revenue and profit growth in the next few years [1][2].
2. Profit Elasticity from Industry Price Hikes
   : Price hikes in the lithium iron phosphate industry will directly increase the company’s product gross margin and accelerate the transition to profitable operations [1].
3. Client Resource Advantages
   : Long-term stable cooperative relationships with leading battery manufacturers help to continuously obtain orders [1][2].

The strong performance of Longpan Technology (603906) is mainly driven by large-scale long-term order signings and industry price hikes. The technical side has short-term overbought risks, while the fundamental side has order support but profits have not yet turned positive. Short-term attention should be paid to stock price correction pressure; long-term performance depends on order execution, industry price hike trends, and the company’s profit improvement progress. Investors should comprehensively evaluate the company’s investment value based on their own risk preferences and investment cycles.