Analysis of Strong Performance and Prospect Judgment of Longzhou Co., Ltd. (002682)

Longzhou Co., Ltd. (002682) recent strong rise is mainly driven by

[1][3]: On December 2, 2025, Fujian released 12 policies to benefit Taiwan compatriots and people, and the “15th Five-Year Plan” proposed to build a hub for cross-strait channels [1]; On December 5, 2025, the State-owned Assets Supervision and Administration Commission of Fujian Province held a capital and industry docking conference in Shenzhen [2], driving the collective activity of the Fujian sector. From a technical perspective, the stock has hit the daily limit for 3 consecutive trading days, with the closing price of $7.88 on December 5, 2025 being the 52-week high, and the 20-day moving average of $6.14 supporting the uptrend [0], but the trading volume of 12.72M on that day was significantly lower than the 20-day average of 51.62M [0]. In terms of fundamentals, the company’s EPS is -$0.66 and P/E ratio is -11.94, with valuation not matching fundamentals [0], so the rise is mainly driven by speculative sentiment.

1. Policy-driven speculative market
   : The rise is completely dependent on regional policy incentives, with no fundamental support. Whether the sector’s popularity can continue depends on the progress of policy implementation and the continuity of market sentiment.
2. Volume-price divergence
   : Trading volume shrank during the daily limit period, indicating insufficient upward momentum in the future and increased short-term correction risk [0].
3. Clear resistance and support
   : The current price of $7.88 is the 52-week resistance level, and the 20-day moving average of $6.14 is an important support level.

• Risks
  : The stock price may correct sharply after policy enthusiasm fades; contradiction between overvaluation and weakened fundamentals; insufficient upward momentum due to shrinking trading volume [0].
• Opportunities
  : The short-term rebound window for the Fujian sector still exists; if policy-related themes continue to ferment, there may be further performance space.

Longzhou Co.'s current strong performance is driven by Fujian regional policy incentives. Technically, it is at a high level but with volume-price divergence, and fundamental support is weak. Investors need to pay attention to policy dynamics, changes in trading volume, and valuation risks, and rationally view short-term market fluctuations.