Due to escalating geopolitical conflicts in the Middle East, the oil and gas sector in the A-share market has experienced a surge of capital activity. During this trend, Shandong Molong Petroleum Machinery Company Limited (SZ002490) has become a major focus for investors. Over five trading days, the cumulative deviation in the closing price of Shandong Molong's stock reached 52.37%, triggering the Shenzhen Stock Exchange's threshold for abnormal trading volatility. In response to the sharp stock price increase and overheated market sentiment, Shandong Molong issued statements on March 6 and March 8, urging the market to remain cautious. The company clarified that its production and operational activities are proceeding normally and emphasized that short-term fluctuations in international crude oil prices have no substantial positive impact on its performance. Investors were advised to be wary of irrational speculation risks.
At the beginning of March 2026, Shandong Molong's stock price surged unexpectedly in the secondary market. According to the company’s announcement, the cumulative deviation in its closing price over three consecutive trading days (March 4, March 5, and March 6, 2026) exceeded 20%, which constitutes abnormal trading volatility under exchange regulations. Over a slightly longer period, the stock’s performance was even more striking. From March 2 to March 6, 2026, the cumulative price deviation reached 52.37%. This rapid appreciation highlights intense speculative interest in the stock, alongside significant risks of market overheating and irrational trading.
This surge is not an isolated event but is closely linked to broader sector rotation in the A-share market and international macroeconomic developments. Recent escalation of Middle East geopolitical tensions has directly increased risk premiums for international oil prices. Against this backdrop, the overall oil and gas sector in the A-share market has seen strong upward momentum. As a leading player in the sector, PetroChina (SH601857) saw its shares hit the daily limit up for two consecutive days on March 2 and March 3, with its A-share market capitalization soaring to 2.14 trillion yuan by the close on March 4.
In light of the sharp stock price increase, Shandong Molong promptly conducted internal checks to address market concerns. The board of directors verified with the company’s controlling shareholder and actual controller, confirming that there have been no significant changes in production, operations, or internal and external operating conditions, nor are any major changes anticipated. Additionally, no major undisclosed information exists involving the company, its controlling shareholder, or actual controller. It was also confirmed that no stock transactions were conducted by the controlling shareholder or actual controller during the period of abnormal volatility.
Addressing the market’s speculation around benefits from rising crude oil prices, Shandong Molong issued a clear and rational statement. The board emphasized that current international crude oil price fluctuations do not provide any substantive short-term benefit to the company’s performance, serving as a sobering message to speculative investors.
Beyond short-term speculation, what is Shandong Molong’s actual financial condition? According to the company’s 2025 performance forecast disclosed on the evening of January 28, 2026, Shandong Molong expects to return to profitability. Net profit attributable to shareholders is projected to be between 4 million yuan and 6 million yuan, compared to a loss of 43.6998 million yuan the previous year. The improvement is attributed to active expansion into sales markets, sufficient product orders, and a strong overseas strategy, with revenue from international markets increasing by approximately 50% year-on-year. Enhanced capacity utilization, improved product margins, and internal cost-cutting measures also contributed to the better operating results.
However, a closer look at the performance forecast reveals continued pressure on the company’s core business. Excluding non-recurring gains and losses, Shandong Molong is still expected to report a net loss between 28.5 million yuan and 25 million yuan for 2025. The key driver behind the return to net profitability was approximately 30 million yuan in non-recurring gains, primarily from government subsidies, disposal of non-current assets, and litigation compensation. This indicates that, without such one-time gains, the company’s core operations have not yet fully recovered their ability to generate sustainable profits.
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