Reasons and Analysis for Hollysys (002402.SZ) Making the Popular List

1. Stock Overview
   : Hollysys (002402.SZ) belongs to the technology sector, with a current share price of $53.42 and a market cap of $48.29B[0].
2. Reasons for Making the Popular List
   : On December 4, the stock price hit the daily limit (+10.01%), with trading volume of 117.04 million shares, significantly higher than the average of 87.00 million shares[0]. Its strong long-term trend (182.94% over 6 months, 203.52% YTD) combined with the daily limit-up行情 pushed it into the popular list.
3. Price and Volume Analysis
   : The stock opened at $50.13 on the day, peaked at the limit-up price of $53.42, showing a one-sided upward trend. It gained 57.63% over the past 3 months, indicating a clear long-term upward trend[0].
4. Market Sentiment
   : The surge in volume and limit-up price reflect extremely optimistic market sentiment and strong short-term momentum. However, there is no direct news catalyst, and the rise may rely on capital chasing and the technology sector effect[0].

1. The combination of strong long-term gains and short-term limit-up has attracted widespread market attention, even without clear company-level news catalysts.
2. The technology sector has been active recently, which may provide sectoral support for Hollysys’ rise.
3. The stock price has high volatility (it once dropped 9.65% in a single day on November 24), showing instability in market sentiment[0].

1. Risks
   :
   • Overvaluation: P/E (TTM) is 79.38x, far higher than the industry average[0].
   • Average profitability: Net profit margin is only 5.63%[0].
   • Lack of clear catalysts: No direct company announcements or industry news driving the limit-up were found, so the sustainability of short-term gains is questionable.
   • Volatility risk: Historical single-day drops are large, leading to high volatility risk[0].
2. Opportunities
   : If it breaks through the 52-week high of $60.71, it may further open up upward space[0].

Hollysys (002402.SZ) made the popular list due to short-term limit-up and strong long-term trends. Market sentiment is optimistic, but there are issues such as divergence between valuation and profitability, and high volatility risks. Investors need to pay attention to the price support level ($48.00-$49.00) and the breakthrough of the resistance level ($60.71), and make comprehensive judgments based on the company’s fundamentals and industry dynamics.