Analysis Report on the Strong Performance of Huangshi Group (002329)

Huangshi Group (002329.SZ) has attracted much attention recently, mainly because it hit the daily limit for two consecutive trading days on December 15-16, 2025, with a cumulative increase of over 20%, entering the strong stock pool [0][2][3]. The company issued an announcement on December 16 stating that the cumulative amount involved in lawsuits and arbitrations by the company and its holding subsidiaries over the past twelve consecutive months is approximately 99.5492 million yuan (accounting for 10.65% of the latest audited net assets), mainly for recovering overdue advance payments and equity repurchase payments [1]. Although the cases are not closed, the market interprets this as the company actively improving its financial situation, driving the stock price up.
From a technical perspective, the stock is in an upward trend (to be confirmed), with a resistance level of $4.58, a support level of $4.05, and a next target level of $4.81; MACD and KDJ indicators are bullish, but RSI indicates an overbought risk [0]. In terms of trading volume, the volumes on December 15-16 were 64.32 million shares and 44.13 million shares respectively, both higher than the average volume of 29.93 million shares, showing a significant increase in trading activity [0].

Despite the sharp rise in stock price, the company’s fundamentals are weak, with a net profit margin of -38.71%, ROE of -77.57%, P/E of -5.39 times, and non-recurring net profit has been negative for five consecutive years [2]. The stock price rise reflects more short-term speculative sentiment or expectations of financial improvement rather than fundamental support.

: The company has been losing money for years, with fragile finances [2]; lawsuits are not closed yet, so there is uncertainty in recovering funds [1]; RSI indicates overbought, with high short-term correction risk [0]; stock price deviates from fundamentals, overvalued [0].
: If the lawsuits are won and funds are recovered, it may improve the company’s financial situation and boost market confidence.

Huangshi Group’s recent strong performance is mainly driven by short-term speculative sentiment and market interpretation of the lawsuit announcement. The technical side shows bullish signals but has overbought risks, while fundamentals are relatively weak. Investors need to pay attention to lawsuit progress, volume changes, and overbought correction risks.