The electronics sector leads with 15 companies, making it the most concentrated area for valuations exceeding 1,000 times P/E. In the current technology-driven market rally, sectors like AI have attracted significant capital, pushing up valuations for many tech stocks, with their trailing P/E ratios soaring past 1,000 times. As of the close on May 26, 63 A-share companies had a P/E (TTM) ratio above 1,000. Among these, the electronics sector tops the list with 15 companies, forming the largest cluster of high-valuation stocks. Some hard-tech firms in AI and semiconductors have seen their stock prices and valuations rise substantially, benefiting from improving industry sentiment and concentrated investor interest. Conversely, another group of companies has experienced continuous stock price declines this year, yet their P/E ratios have been passively inflated to the thousand-fold level due to sharply shrinking net profits and weak core operations—a distortion resulting from deteriorating fundamentals rather than market endorsement. For instance, Shanghai Broadband Technology Co.,Ltd. (600608.SH), with a P/E as high as 1,568 times, is facing delisting after receiving a prior notice of intended termination of its stock listing.
Electronics Sector Most Concentrated for Stocks with P/E Over 1,000 In this tech bull market, driven by high expectations for "technological breakthroughs and industrial transformation," some tech stocks have reached thousand-fold valuations. Of the 63 companies with trailing P/E ratios over 1,000, 15 are from the electronics sector, accounting for 23.8%, including 9 semiconductor companies. The remaining tech stocks are spread across machinery, electrical equipment, computers, communications, and other tech-related fields, involving over 10 companies. Among these, three semiconductor firms—Dosilicon Co.,Ltd. (688110.SH), Dapustor Corporation (301666.SZ), and Skyverse Technology Co.,Ltd. (688361.SH)—have the highest trailing P/E ratios, all exceeding 10,000 times at 25,106, 23,959, and 15,181 times respectively, ranking second, fourth, and fifth in the entire A-share market.
Amid the tech sector's rise, Dosilicon Co.,Ltd., in the memory chip space, has seen its stock price surge over the past year. From July 29 last year to May 26 this year, its cumulative gain reached 304.72%. With the recent boom in memory chips, its stock hit a record high of 170.70 yuan on May 11, closing at 155.13 yuan most recently. Financially, after reporting a net loss attributable to shareholders of 195 million yuan in 2025, down 16.54% year-on-year, the company returned to profitability in Q1 2026, with revenue of 479 million yuan, up 236.95% year-on-year, and net profit attributable to shareholders of 138 million yuan. The company attributed this to sustained improvement in its core memory business and the release of earnings flexibility.
Dapustor Corporation, focused on enterprise storage in semiconductors, shows a similar pattern. It reported a net loss attributable to shareholders of 481 million yuan in 2025, down 151.96% year-on-year, but turned profitable in Q1 2026 with net profit attributable to shareholders of 370 million yuan, up 398.88% year-on-year. After listing on the ChiNext board on April 16, its stock price rose rapidly, reaching a high of 918.88 yuan on May 25. On May 26, it fell 13.78% to close at 713 yuan, with a market cap of 311 billion yuan, marking a cumulative gain of 244.06% over 26 trading days since listing.
Shenzhen Dawei Innovation Technology Co.,Ltd. (002213.SZ), also in digital chip design, has a P/E ratio over 4,000 times and returned to profitability in Q1 2026. The company noted that the global semiconductor memory market has entered an upward cycle since last year, with product prices continuously rising.
Among high-P/E stocks with significant year-to-date gains, Glory View Technology Co.,Ltd. (301396.SZ) leads with a 309.20% increase. The company focuses on R&D and industrial application of cutting-edge technologies like AI, big data, and high-performance computing. Before this year, its stock was below 70 yuan, but it surged sharply starting this year, hitting a record high of 372.60 yuan on May 7 before pulling back to close at 271.30 yuan on May 26. With the ongoing rally, its latest P/E ratio stands at 1,188 times.
Other high-P/E companies with notable year-to-date gains are also largely from the electronics sector, such as Omat Advanced Materials(Guangdong)Co.,Ltd. (688530.SH) and Suzhou Everbright Photonics Co.,Ltd. (688048.SH). Additionally, Shanghai Suochen Information Technology Co.,Ltd. (688507.SH), whose core products include CAE and physical AI solutions, has seen a sharp rally recently, gaining 106.61% over eight trading days and hitting a record high of 199.32 yuan on May 26, with a P/E ratio of 1,297 times.
Valuation Distortion in Underperforming Stocks Of course, some companies with P/E ratios exceeding 1,000 times are driven not by stock price appreciation but by shrinking net profit, leading to passive P/E inflation. Fsilion Furnishing And Construction Materials Corporation (605318.SH), with the highest P/E at 38,955 times, is in a loss-making position. After reporting a net loss attributable to shareholders of 6.6682 million yuan in 2025, it incurred a further loss of 983,400 yuan in Q1 2026. Yet, its stock price has trended upward since last year, closing at 95.90 yuan on May 26.
Shanghai Broadband Technology Co.,Ltd. presents an extreme case. The company is facing delisting but has a latest P/E ratio of 1,568 times. Its stock price has continued to decline this year, falling 38.76% year-to-date to just 2.07 yuan as of May 26. The company reported net profit attributable to shareholders of only 2.6312 million yuan in 2025, which turned into a loss of 1.6671 million yuan in Q1 2026, down 414.50% year-on-year. It attributed this mainly to the reclassification of certain business income to interest income in financial expenses in the same period last year, leading to a year-on-year decrease this quarter. Notably, on the evening of April 29, the company announced it had received a prior notice of intended termination of its stock listing due to negative audited net profit excluding non-recurring items and revenue below 3 billion yuan for 2025, a qualified audit opinion on its financial report, and an audit report expressing no opinion on internal controls.
Xinglong Holding (Group) Company Ltd. (000955.SZ) in the textile and apparel sector faces a similar situation. Its stock price has fallen 29.74% this year, closing at 4.37 yuan on May 26. The company reported net profit attributable to shareholders of only 718,100 yuan in 2025 and a loss of 760,400 yuan in Q1 2026.
Invengo Information Technology Co.,Ltd. (002161.SZ) reported one of the largest losses in Q1 2026. Its net profit attributable to shareholders was 15.3953 million yuan in 2025, down 44.72% year-on-year, but it swung to a loss of 38.3162 million yuan in Q1 2026, down 58.16% year-on-year. Its stock price has trended downward this year, falling 10.81% year-to-date, with the latest price at 6.52 yuan and a market cap of 4.8 billion yuan.
In the machinery sector, Zhejiang Jindun Fans Co.,Ltd. (300411.SZ) has seen its stock price drop over 20% year-to-date. After two consecutive days of sharp declines, it closed at 8.36 yuan on May 28, with a market cap of 3.4 billion yuan.
Overall, these companies are mostly small-cap with weak fundamentals. Among the 63 companies with P/E ratios over 1,000, 7 have market caps below 3 billion yuan, with 5 reporting losses in Q1 2026. Besides Shanghai Broadband Technology Co.,Ltd. and Xinglong Holding (Group) Company Ltd., Jiangsu Feiliks International Logistics Inc. (300240.SZ), Yangfan New Materials (Zhejiang) Co.,Ltd. (300637.SZ), and Harbin Viti Electronics Corp (603023.SH) also reported losses and significant declines in Q1 2026. For instance, Jiangsu Feiliks International Logistics Inc. reported net profit attributable to shareholders of 9.7283 million yuan in 2025 but a loss of 6.9486 million yuan in Q1 2026, a drop of over 12 times year-on-year; Harbin Viti Electronics Corp reported a profit of 4.0652 million yuan last year but a loss of 3.158 million yuan in Q1 2026. All three stocks have declined year-to-date, with Jiangsu Feiliks International Logistics Inc. at 6.22 yuan and Harbin Viti Electronics Corp at 4.72 yuan.
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