China Spacesat warns investors of significant risks amid stock surge

China Spacesat has experienced abnormal stock price fluctuations, with its shares climbing 91.43% since December 3, 2025. This surge significantly outpaces the 13.70% increase in the Shenwan Military Industry sector and the 2.19% rise of the SSE A-share index over the same period, reaching historical highs despite no fundamental changes to the company's operations. The company warns of market overenthusiasm and advises investors to exercise caution.

The company highlighted several risks, including substantial valuation concerns. China Spacesat's latest trailing price-to-earnings (P/E) ratio is 1646.18, and its price-to-book (P/B) ratio is 14.90 as of December 26, 2025. These figures are considerably higher than the sector averages of 171.84 for P/E and 4.21 for P/B. Additionally, the company's financial performance shows a 25.06% year-on-year decrease in operating revenue and an 82.28% drop in net profit attributable to shareholders for 2024. For the first nine months of 2025, net profit was CNY 14.81m, with a gross profit margin of 9.62% and a net profit margin of 0.48%, indicating limited profitability.

The company also noted high trading activity, with a turnover rate of 14.19% on December 26, 2025, and an average daily turnover rate of 12.70% over the preceding five trading days. China Spacesat confirmed no undisclosed major information or plans that would significantly affect its stock price.