On the morning of September 16, Shanghai Construction Group Co.,Ltd. hit the daily limit again, achieving three consecutive daily limits with shares closing at 3.21 yuan, bringing its total market capitalization to 28.5 billion yuan.
The driving force behind this stock price surge stems from market rumors regarding increased gold mine resource reserves at Shanghai Construction Group's subsidiary.
However, according to media reports, when contacted on September 15 during trading hours, Shanghai Construction Group's securities department stated that investors should refer to official announcements, and no related information had been disclosed recently.
On the evening of September 15, Shanghai Construction Group issued an announcement clarifying that the circulated news about increased gold mine resources was information already disclosed in 2020 and does not constitute recent information.
In its announcement, Shanghai Construction Group stated that recent media reports mentioned good news from the Koka gold mine owned by Zara Mining Company, a 60% controlled subsidiary, with gold mine resource reserves increasing by 338,900 ounces, equivalent to 4.272 billion yuan. The aforementioned gold mine information was sourced from the company's announcement "Shanghai Construction Group's Announcement Regarding Gold Mine Resources of Zara Mining Company" disclosed on August 27, 2020 (Announcement No. Lin 2020-066), which was previously disclosed information and not recent news.
Beyond the aforementioned "old news," a story about a "Shanghai Uncle" unexpectedly became a catalyst for market sentiment surrounding Shanghai Construction Group. An investor with the username "Shanghai Construction Group Uncle" has been using pension funds to add positions monthly for ten years, successfully reducing his position cost from 6 yuan per share to 3.8 yuan per share, yet still remains trapped.
This investment experience quickly sparked an online movement of "everyone buy one lot to help Uncle break even," becoming a unique factor influencing short-term market sentiment.
After Shanghai Construction Group hit daily limits on September 12 and 15, it opened lower on September 16 before surging to another strong daily limit, with significant net inflows of 33.36 million yuan from major funds. The stock price reached 3.21 yuan, still 60 cents away from helping "Shanghai Uncle" break even.
Shanghai Construction Group issued a risk warning announcement on the evening of the 15th, stating that the current stock price has risen significantly, and the company's latest rolling P/E ratio is higher than the industry average, potentially indicating irrational speculation.
As a veteran in China's construction industry, Shanghai Construction Group ranks 8th among the world's largest 250 engineering contractors according to Engineering News-Record (ENR) and 374th in the Fortune Global 500. It is China's third-largest ready-mix concrete supplier and second-largest precast concrete component supplier.
From a business structure perspective, through years of development, Shanghai Construction Group has formed a core business architecture with construction services as its foundation, design consulting and building materials industrial businesses as support, and real estate development and urban construction investment businesses as its two wings.
Regarding fundamentals, the company faces operational performance volatility risks. In the first half of 2025, Shanghai Construction Group achieved operating revenue of 105.042 billion yuan, down 28.04% year-over-year, and net profit attributable to shareholders of 7.10 billion yuan, down 14.07% year-over-year.
In recent years, the company has actively expanded into emerging markets such as urban renewal and water conservancy based on its construction business foundation, bringing new growth opportunities. Additionally, the company has achieved significant technological innovation results, with R&D investment of 3.093 billion yuan, obtaining 709 patents, and deploying 35 construction robots, enhancing the company's core competitiveness.
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