Who is buying the "miracle stocks" with a 300x P/E ratio?

A traditional enterprise with an annual profit of 700 million yuan has been artificially hyped up to a maximum market value of 250 billion yuan.

On September 17, Shengu Group officially landed on the capital market. On the first day of listing, the company opened at a price of 13 yuan, surged 373.8% on the same day and closed at 20.8 yuan, completing a highly profitable debut in the capital market, and many traders who won the new share subscription also made profits.

However, the share price of Shengu did not stop rising on the first day of listing, and continued to rise unusually on the second trading day.

On September 18, driven by positive external factors, the A-share market opened higher and moved higher, while Shengu opened lower at 15 yuan and then gradually rose to turn positive. As of midday trading, it rose 9.04% to close at 22.68 yuan. But after the midday market opened, the share price suddenly surged 80.29%, reaching 37.5 yuan.

This upward trend did not end there. With continuous capital inflows, Shengu's share price kept hitting new highs, once touching 82.59 yuan during the trading session, corresponding to a market value exceeding 250 billion yuan.

For new shares, the first day of listing usually completes the first round of market pricing. Such drastic fluctuations of Shengu on the second trading day after listing are very unusual in themselves.

Judging from the market performance, the sign of capital-driven growth is very obvious. The share price quickly broke away from the morning trend in a short period of time, and rose continuously in the afternoon. The focus of market transactions has shifted from the company's value to a game of "passing the parcel".

Then behind this round of capital relay, what kind of enterprise is Shengu, what is its actual value? And why did it become the target of market pursuit at this point in time?

01

Where did Shengu come from?

In the field of Chinese industrial equipment, Shengu is an unavoidable name.

Founded in 1952, Shengu Group is an industrial equipment giant growing out of the "eldest son of the People's Republic of China". It has long served China's energy and industrial systems, and is one of the few domestic enterprises capable of supplying major equipment such as large compressors and industrial turbines.

The products it manufactures are not ordinary mechanical equipment, but core power equipment in large-scale industrial projects.

In fields such as oil refining and chemical industry, natural gas transportation, and coal chemical industry, compressors are equivalent to the "heart" of the entire production process. Once the equipment fails, it will not only affect the operation of a single link, but even cause the entire large-scale project to shut down. Therefore, this type of equipment has extremely high requirements for technical reliability, long-term operation capability and project experience.

For a long time in the past, the high-end compressor market was mainly occupied by overseas enterprises such as Siemens, GE and Mitsubishi. Due to the involvement of energy security and major engineering construction, domestic substitution has always been an important direction of the industry, and Shengu is a representative enterprise that has grown up in this process.

At present, Shengu has formed a business layout covering petrochemical, energy, nuclear power and many other fields, and has participated in a large number of national major engineering projects. Therefore, from the perspective of industrial status, Shengu does have its own scarcity, which is also reflected in the company's operating performance in recent years.

From 2023 to 2025, Shengu's operating revenue was 8.2 billion yuan, 9.3 billion yuan and 10.1 billion yuan respectively, and the net profit attributable to shareholders was 355 million yuan, 442 million yuan and 739 million yuan respectively. In three years, the company's revenue increased by nearly 20%, while the profit growth rate far exceeded the revenue growth rate, doubling in three years.

For a heavy equipment enterprise, it is not easy to achieve a revenue scale of 10 billion yuan and maintain profit growth.

But a good enterprise does not mean it can be hyped infinitely.

For an equipment manufacturing enterprise, it is not surprising that the market is willing to give a certain valuation premium, after all, Shengu has multiple labels such as domestic substitution, major equipment, and energy security. But the problem is that when the share price rushes to a market value of 250 billion yuan in a short period of time, the market is no longer giving it the valuation of a traditional manufacturing enterprise.

Calculated based on the current market value, Shengu's dynamic price-earnings ratio has exceeded 300 times. This means that from the perspective of profit return, investors who bought Shengu at the highest point need to wait for more than 300 years to recover their investment through the profits currently generated by the company.

Compared with its peers, Shengu's current valuation is even more exaggerated.

Also as a large energy equipment enterprise, there is a very similar listed company in the A-share market — Shaanxi Blower Power. The business of Shaanxi Blower Power is highly similar to that of Shengu, and its main products also include compressors, industrial process energy conversion equipment, etc., serving large industrial fields such as petrochemical, energy and metallurgy.

In 2025, Shaanxi Blower Power achieved an operating revenue of about 10.8 billion yuan and a net profit attributable to shareholders of about 800 million yuan. However, the current market value of Shaanxi Blower Power is only about 15 billion yuan, corresponding to a price-earnings ratio of about 22 times. In contrast, Shengu's maximum market value of 250 billion yuan after listing corresponds to a valuation of more than 300 times.

The two companies are in highly similar positions in the industrial chain, with similar revenue scales and little difference in profit levels, but the pricing given by the capital market has a gap of more than ten times.

If the transaction of Shaanxi Blower Power reflects the orders, technologies and profitability accumulated by the enterprise over the past few decades, then what is being traded for Shengu at the moment is obviously not its current performance.

In particular, when a profit of 700 million yuan corresponds to a market value of 250 billion yuan, the content of the transaction is obvious. What the fanatical investors are chasing is not the company Shengu itself, but the next buyer's imagination about Shengu.

Therefore, this round of rise is essentially a game of chip exchange.

02

The skyrocketing of Shengu hits two key nodes

The emergence of Shengu is actually a concentrated release of the current market sentiment.

From the technology market at the beginning of the year to the improvement of market risk appetite at the end of the second quarter, capital has generated huge profit-making effects in the first half of the year. In just three months from April to June, the ChiNext Index rose from 3133.78 points to 4380.41 points, an increase of about 35%.

In this round of rise, the "technology enthusiasts" among A-share investors who are keen on the technology sector have also made a lot of profits.

But after entering July, the previously strong sectors began to adjust, the market's profit-making effect dropped significantly, the ChiNext Index almost showed a sharp A-shaped decline, and the ChiNext Index recorded 3158.14 points at the end of July, almost returning to the position before the rally.

In terms of individual stocks, after a round of collective rise in the technology sector, many popular directions began to diverge. High-position assets such as PCB, CCL and optical modules continued to fall.

More importantly, the market trading volume shrank rapidly. Capital shifted from the previous full-scale attack to more cautious defense, and the trading style also changed from "rush forward" to "predict the prediction of the prediction".

In this environment, the most obvious change in the market is: capital has not disappeared, but is becoming more and more concentrated, and it has launched some individual stocks with independent trends to guarantee their returns.

The reason is very simple. In the shrinking market, there is insufficient incremental capital, and it is difficult for the market to see a large-scale rise. Compared with pushing a large number of stocks to rise at the same time, capital is more inclined to concentrate on attacking a few targets with high recognition.

This is also why the volatility of some small-cap, newly listed, high-theme companies has increased significantly in the recent market. They have no long-term locked-up chips, and the chip structure is simple; the listing time is short, and the market has not formed a stable valuation system; at the same time, it is easy to superimpose various industrial labels to create expectation gaps.

Shengu just meets these conditions. It is a time-honored equipment enterprise with a history of more than 70 years, with industrial labels such as domestic substitution, major equipment, and energy security behind it; at the same time, in the initial stage of listing as a new share, the circulating chips are limited, making it easier for capital to form a concentrated game.

Therefore, in the current stage where the market lacks clear profit-making effects, it has become a carrier for capital to find a breakthrough.

In addition to the shrinking volume, another important background is the sentiment change brought by the 2nd anniversary of the 924 market rally.

After September 24 two years ago, the A-share market ushered in a rapid rebound. The Shanghai Composite Index rose rapidly from 2600 points to nearly 3700 points, and a large number of investors saw market opportunities again. Opening accounts and stock trading once became the core topic of 2024.

Therefore, for investors who have experienced the market's volatile movements for many years before, 924 not only represents the rise of the index, but also represents a sentiment repair.

Now the market is approaching this time node again, but unlike two years ago, although the index performance has improved, the position experience of many investors has not improved synchronously. Some capitals have waited for a long time and still have not obtained obvious returns; some investors missed the opportunity in the previous market, and are worried about missing the next round of market again.

A special sentiment has gradually formed in the market: people are looking forward to new profit opportunities, and urgently hope that a landmark event that can prove the market is restarting will appear.

The continuous rise of Shengu just meets this emotional demand. It provides the most familiar things for the market: rapid rise, profit-making effect, popular labels, and expanding imagination space.

Therefore, the profit-seeking demand of short-term capital and the expectation of ordinary investors for the market to recover have collided on Shengu.

In this regard, the rise of Shengu is not an isolated event. It is more like a concentrated manifestation of the combined effect of current market sentiment, capital preference and industrial stories.

However, such a rise is not sustainable. When the share price breaks away from the enterprise's profitability in the short term, and even relies entirely on sentiment and capital to drive, it will eventually face the pressure of value return. For investors, this is manifested as a sharp shrinkage of principal and huge losses.

Why is there always someone willing to pay for the next imagination every time a new story appears in the market?

The reason is no other. In an environment where quantitative capital, high-frequency trading and short-term games are continuously strengthened, the market is increasingly inclined to reward speed rather than patience; reward sentiment rather than research.

When a new story appears, many investors are not chasing how much value the enterprise can create in the future, but do not want to miss the next rise again.

From this point of view, without some in-depth changes, Shengu is not the first enterprise to be unreasonably "hyped", and it will not be the last one.

This article is from the WeChat official account "Super Focus foci", the author is Sean, and is published with authorization from 36Kr.