Huamao Technology warns of abnormal stock fluctuations amid business concerns

Huamao (Xiamen) New Technical Materials Co., Ltd. (HMT) saw a 20.95% cumulative increase in its stock price over three consecutive trading days from December 10 to December 12, 2025. This surge significantly outpaced the Shanghai Stock Exchange A-share index, triggering an abnormal fluctuation warning. The company's dynamic price-to-earnings ratio stands at 79.75 times, notably higher than the industry average of 28.04 times for the auto parts sector, raising concerns about high valuation risk.

The company's net profit attributable to parent company for the first nine months of 2025 was 172.5 million yuan, marking a 12.06% year-over-year decrease primarily due to increased share-based payment expenses, indicating a decline in operating performance. Additionally, a significant asset restructuring, including a share issuance and cash payment for asset acquisition, is pending review by the Shanghai Stock Exchange and approval from the China Securities Regulatory Commission, adding an element of uncertainty to the company's future.

Despite these factors, HMT's internal production and operations remain normal, and there are no changes in industry policies or the company's main business. The company's controlling shareholders and actual controllers have confirmed no undisclosed major information influencing the stock's abnormal movements, other than previously announced matters.