Henan Dayou Energy warns of high valuation, performance risks after stock surge

Henan Dayou Energy's stock price increased by 124.23% from October 10 to October 22, 2025, triggering a trading anomaly and risk warning. This surge significantly outpaced both the Shanghai Composite Index and the coal mining and processing industry index, raising concerns about irrational speculation and high valuation. The company’s price-to-book ratio of 4.34 is notably above the industry average of 1.74.

The company disclosed that its indirect controlling shareholder, Henan Energy Group, is undergoing a strategic restructuring with China Pingmei Shenma Holdings Group, a matter previously announced on September 26, 2025. This restructuring is not expected to impact the company's operations, and its ultimate controller, the Henan Provincial State-owned Assets Supervision and Administration Commission, remains unchanged.

Operationally, Henan Dayou Energy reported a net loss of CNY -8.51 bn for the first half of 2025. Third-quarter coal sales revenue declined by 7.13% to CNY 105,400.05. The third-quarter gross profit for coal sales fell sharply by 125.95% to CNY -3,569.00, indicating a significant deterioration in its financial performance that further highlights the company's operational risks amidst its soaring stock price.