On September 17th, Shanghai Construction Group Co.,Ltd. (600170.SH) opened with volatile upward movement, twice touching the daily limit. By midday close, Shanghai Construction Group hit the daily limit up, trading at 3.53 yuan per share with a total market capitalization reaching 31.367 billion yuan. Over the previous three trading sessions, Shanghai Construction Group had consecutively secured daily limit ups, with its share price hitting a new high for the year.
On the evening of September 15th, Shanghai Construction Group issued a trading risk warning, stating that media reports claimed its controlling subsidiary's Koka gold mine resource reserves had increased by 338,900 ounces. The company clarified this was previously disclosed information and not recent news. Moreover, the company's gold business revenue accounts for a relatively small proportion of total operating revenue, historically not exceeding 0.5% of operating income, having minimal impact on the company's production and operations.
Beyond the aforementioned old news, a steadfast Shanghai Construction Group shareholder known online as "Shanghai Construction Group Uncle" has also become a trending topic.
According to online accounts, this "Uncle" has been consistently using his pension to add to his position monthly for ten years, reducing his cost basis in Shanghai Construction Group shares from 6 yuan per share down to 3.8 yuan per share, yet still remains underwater on his investment. On various investor communication platforms, topics such as "Save Uncle Campaign" have attracted investor participation and discussion.
Based on Shanghai Construction Group's current share price, Uncle is just 0.27 yuan away from breaking even. This means if Shanghai Construction Group rises more than 7.65% tomorrow, Uncle could successfully break even. Looking at the longer timeframe, this represents Uncle's closest approach to breaking even since 2022.
The driving force behind this round of share price increases stems from market rumors regarding increased gold mine resource reserves under Shanghai Construction Group. However, the company quickly denied this "good news."
Shanghai Construction Group issued a risk warning announcement on the evening of the 15th, stating that the current stock price increase has been substantial, with the company's latest rolling P/E ratio higher than the industry average for listed companies, potentially indicating irrational speculation. Simultaneously, the story about "Shanghai Uncle's" shareholding has become a catalyst for market sentiment.
While the company responded with relevant announcements, the investor known as "Construction Group Uncle" has drawn even more attention. An investor with the username "Shanghai Construction Group Uncle" has been using pension money monthly to add to his position for ten years, reducing his cost basis from 6 yuan all the way down to 3.8 yuan, yet still hasn't broken even, sparking an online movement of "everyone buy one lot to help Uncle break even."
Reviewing Shanghai Construction Group's share price over the past decade, since declining from its 2015 peak, it has consistently fluctuated within the 2-3 yuan range. After two consecutive daily limit ups, as of September 15th close, Shanghai Construction Group's share price had recovered to 2.92 yuan. By today's morning session limit up, the share price reached 3.21 yuan per share. Based on "Construction Group Uncle's" previously disclosed cost basis of 3.8 yuan, Uncle's ten years of pension additions leaves him just 0.6 yuan away from breaking even.
Financial data shows that in the first half of 2025, Shanghai Construction Group achieved revenue of 105 billion yuan, down 28.04% year-over-year, with net profit attributable to shareholders of 710 million yuan, down 14.07% year-over-year. Traditional construction business faced significant pressure, while the gold business became an important profit growth driver for Shanghai Construction Group.
In the first half of 2025, Shanghai Construction Group's traditional construction contracting business revenue declined significantly by 30% year-over-year, construction industry revenue fell 12.5% year-over-year, while only the gold sales business achieved revenue of 403 million yuan, up 8.44% year-over-year in the first half, contributing 146 million yuan in gross profit, accounting for 1.68% of total gross profit. The gross profit margin reached 36.25%, far exceeding traditional construction business.
Shanghai Construction Group's share price surge benefits from the performance expectations brought by continuously rising international gold prices. International gold prices have shown strong momentum since 2024, with cumulative gains of 26.4% in 2024 and cumulative gains reaching 26.5% in the first half of 2025.
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