Institutions remind us of the risk of speculation, and the concept of room temperature superconductivity continues to be hot! Multiple A-share concept stocks quickly clarify relevant information | Room temperature | A-share
An unverified academic achievement has once again ignited the global concept of "room temperature superconductivity" stocks.
On August 1st, teams from China, the United States, and Russia replicated room temperature superconducting crystal experiments on the same day. Stimulated by this news, concepts related to the US stock market surged on the same day, with superconductivity in the US skyrocketing by over 60% in a single day. Conceptual stocks related to the A-share market have risen sharply for two consecutive days. As of the close on August 2nd, individual stocks such as China Cable Testing, Zhongfu Industry, Baili Electric, and Falsheng have hit the limit up.
Rapid rise in stock price and hot speculation of funds
After two rounds of speculation in March and May this year, the concept of room temperature superconductivity has made a comeback. On August 2nd, several room temperature superconducting concept stocks opened with a straight limit up, breaking a bullish pattern throughout the day. Among them, Baili Electric had over 620000 orders on the limit up board and Falsheng had over 130000 orders on the limit up board.
As of the close on August 2nd, the stock price of Baili Electric was 6.30 yuan per share, an increase of 9.95%. The turnover rate on the day was only 1.44%, and the transaction amount was 98.43 million yuan. The cumulative increase in the past five trading days was 22.33%. Faersheng once opened the daily limit up but quickly returned to the limit, recording a six day four board trading with a turnover rate of 17.38% on the same day, breaking the "T" bullish line, with a transaction volume of 432 million yuan, and a cumulative increase of 45.34% in the past seven trading days.
The A-share room temperature superconducting concept sector currently has a total of 15 concept stocks. According to Wind data, in the past month, 12 concept stocks have recorded an increase, with top performers including Falsheng, Baili Electric, Yongding Shares, Western Superconducting, Baosheng Shares, etc.
Behind the high stock price, funds are driving the waves, with multiple concept stocks frequently appearing on the Dragon Tiger List in the past month. Among them, Falsheng has been listed 6 times, with Huaxin Securities Shanghai Branch, Oriental Wealth Securities Lhasa East Ring Road Second Branch, and Shenwan Hongyuan Dalian Jinma Road being the most active investors in the stock, with 4, 2, and 2 times respectively. In the past month, Baili Electric has also made it to the Dragon and Tiger List once, with Huaxin Securities Foshan Nanhai Haiwu Road, Shanxi Securities Yuncheng Hedong Street, and Shenwan Hongyuan Securities Co., Ltd. Shanghai Hongkou District Zhongshan North Road being the most active in trading, with 1, 1, and 1 times respectively.
After market data on August 2nd showed that Faersheng was hyped up by speculative fund turnover on the same day, with a turnover rate of over 17% throughout the day. Famous speculative positions were sold by CITIC Securities Dalian Branch and CITIC Securities Shanghai Liyang Road Branch for 30.58 million yuan and 14.16 million yuan respectively, while Guosheng Securities Cixi Ciyong Road Branch and Huabao Securities Shanghai Dongdaming Road Branch bought 23.07 million yuan and 12.52 million yuan respectively.
China Cable Testing, which has even raised the limit by 20cm, has also been heavily changed hands by speculative investors. After market data on August 2nd showed that the top five buying and selling branches on the list had a total transaction volume of 179 million yuan, of which the buying transaction volume was 42.9713 million yuan and the selling transaction volume was 136 million yuan, with a total net selling volume of 93.1353 million yuan. The net sales of institutional exclusive seats were 39.9527 million yuan.
Clearing Relationships for Listed Companies
What ignited another frenzy in the capital market was a research report. In the early morning of August 1, Beijing time, Taiji Quantum released a photo saying that a new room temperature superconducting material, a graphene foam material, is very fragile. On the same day, teams from China, the United States, and Russia replicated room temperature superconducting crystal experiments, both stating that the recently announced anti magnetic properties of room temperature and atmospheric pressure superconducting materials by South Korea, which means that the replicated materials can indeed be magnetically suspended.
However, some industry insiders in the scientific community have pointed out that Taiji Quantum has not simultaneously released relevant experimental data and should hold a reserved attitude towards the results; The room temperature superconducting crystal test results reproduced by China, the United States, and Russia may also have randomness.
The experimental results, which have not yet been widely recognized by the scientific community, have once again become popular in the capital market, and many recently rising A-share "room temperature superconducting" listed companies have distanced themselves from them.
"The company currently has no related business and is not related to its main business," a staff member from the Farsheng Securities department told reporters. The staff member stated that a sharp rise in stock prices is a market behavior. After reviewing public information, it was found that Falsheng is a metal products company, mainly engaged in the production and sales of steel wires and wire rope products with various uses and specifications; Development and production of leachate treatment equipment for household waste, as well as operation and management services for leachate treatment equipment for household waste.
Similarly, staff from the securities department of Baili Electric also told reporters that the company does not have any "room temperature superconductivity" related business. Its main business is research and development, production, and sales of transmission and distribution and control equipment, smart grid electrical equipment, pumps, etc.
On the evening of August 2nd, Baili Electric released another stock price fluctuation announcement, stating that the company is not involved in "room temperature superconductivity" related businesses, nor has it conducted related research and development and investment. Beijing Yina Superconducting Technology Co., Ltd., a subsidiary of the company, is engaged in the research and development and production of bismuth based high-temperature superconducting wires, which are not related to "room temperature superconductivity".
National Cable Testing also announced that the company's main business is to provide professional technical services such as inspection and testing of wires, cables, and fiber optic cables. High temperature superconducting cable testing is one of the testing areas that the company can provide and does not have a significant impact on the company's operations. These high-temperature superconducting cables operate at -196 degrees Celsius, independent of the concept of room temperature superconductivity.
As of the reporter's press release, several "hot" companies have self certified that they are not related to "room temperature superconductivity". Yuguang Gold Lead, Jinhui Co., Ltd., Zhongfu Industry, and Yongding Co., Ltd. have all told reporters that "the company has no related business", and some companies have stated that they are researching high-temperature superconductivity related businesses, "but it is not a type of technology with room temperature superconductivity.".
Some companies also attempt to "ride the hot topics". Innovation New Materials stated in a phone call to reporters that the company has cable business and there may be a correlation, but it still needs to be verified with the business department. Zhongtian Technology responded to investor questions on the interactive platform and stated that the company has participated in major domestic superconducting power application demonstration projects and will closely monitor the opportunities brought by industry technology upgrades. Xinhongye and Far East Corporation also stated that they will continue to pay attention to research on superconducting technology and actively monitor it.
Be wary of "riding on hot topics"
Recently, room temperature superconducting concept stocks have surged, and some investors are worried about whether it is another round of "cutting leeks".
"The experimental results have not been widely recognized by the scientific community, and even if they are established, they cannot be commercialized in the short term. This is just a self frenzy in the capital market," said a semiconductor industry researcher from a public fund who was interviewed by reporters. He reminded individual investors to be cautious when entering the market, as many concept stocks may "bury mines".
The reporter noticed that several recently popular concept stocks belong to small market value stocks, and there may also be certain risks in their operational capabilities. Taking Falsheng as an example, its total market value ranks second to last among the 15 concept stocks, at 2.488 billion yuan. The reporter further reviewed its recent financial report and found that the company's operating ability was poor, with revenue declining from 1.698 billion yuan in 2018 to 678 million yuan in 2022, a decrease of nearly two-thirds; Meanwhile, losses were recorded for five consecutive years after deducting non net profits. According to the latest disclosure of the company's 2023 semi annual report forecast, the net profit for the first half of the year is expected to still record losses, ranging from 8 million to 12 million yuan.
In addition, the announcement released by Western Superconductor shows that as the company's largest controlling shareholder, Northwest Nonferrous Metals Research Institute plans to reduce its stake in the company by no more than 3.898 million shares.
Behind the market frenzy, some stocks that have surged recently have been quietly outflowing their main funds. As of the close on August 2, Zhongfu Industrial had a net outflow of over 300 million yuan from its main funds, reaching a new high since July 23, 2015. Its net outflow for the day ranked 9th in the Shanghai and Shenzhen stock markets, and the stock has been sold by the main investors for a total of 362 million yuan in the past 30 days.
After today's trading, several A-share room temperature superconducting listed companies responded intensively with no related business or technology. Falsheng announced that its main business is metal products and environmental protection, and the company is not involved in "room temperature superconductivity" related businesses, nor has it conducted related research and development and investment. Baili Electric announced that the company is not involved in "room temperature superconductivity" related businesses, nor has it conducted related research and investment. Beijing Yina Superconducting Technology Co., Ltd., a subsidiary of the company, is engaged in the research and development and production of bismuth based high-temperature superconducting wires, which are not related to "room temperature superconductivity". According to a statement released by China Cable Testing Corporation, the company's main business is to provide professional technical services such as inspection and testing of wires and cables, as well as fiber optic cables. High temperature superconducting cable testing is one of the testing areas that the company can provide and does not have a significant impact on its operations. These high-temperature superconducting cables operate at -196 degrees Celsius, independent of the concept of room temperature superconductivity.
It is worth noting that behind the market hype, there have been significant gains in individual stocks that have been sold off by institutional funds. On August 2nd, data from the Dragon and Tiger List showed that Western Materials, a superconducting concept stock, was net sold by institutions for over 60 million yuan, while another superconducting concept stock, China Cable Testing, was net sold by institutions for nearly 40 million yuan. Li Haibin from Jinyuan Securities told First Financial that the implementation of room temperature superconducting technology is still early and is purely a conceptual speculation.
