Note: Xiaobai's financial log is for personal reference only and does not constitute any recommendations!!!
I purchased this China Aerospace Science and Industry Corporation stock at a price of 14.77 on October 15, 2024. The reason for the purchase was seeing some news about the international situation, especially analyses online suggesting that China is very likely to take military action against Taiwan this year. Additionally, the recent international situation has been quite turbulent, such as Russia's actions in Ukraine, the conflict in the Middle East between Israel and Gaza, and tensions on the Korean Peninsula. This information made me feel positive about the military industry, so even though favorable news before National Day had caused the stock market to rise significantly, I still bought some military stocks. One reason for choosing China Aerospace could be its relatively low price-to-earnings ratio. [Turbulent situations benefit the military industry, and China Aerospace's market value is also decent with a low price-to-earnings ratio.]
(The above image shows the buying and selling positions. Overall, there was still about a 4.5% profit. After selling, the stock hit the daily limit up.)
The reason for selling was that I looked at the recently released third-quarter performance report. Compared to previous reports, the performance declined, and the net profit was negative. To be cautious, I placed a sell order early at the market open. However, after selling that day, the stock hit the daily limit up? I don't quite understand why, with such low profits reported, the stock would still hit the limit up. What is the reason behind this?
(The above image shows data from the Tonghuashun mobile app, which clearly indicates that such comparisons can be misleading.)
Before the market opened, I checked some comments on the app, and there were many differing opinions. One side, like me, instinctively felt it would open limit down, while the other side believed it was a positive sign (the reason being they thought the financial report indicated increased production investment, military industry year-end accounting, etc.). The software indicated that the unusual activity was due to the military industry's popularity. Is that really the case?
(The above image shows the software's explanation for the limit up, which seems to say the same thing without providing clarity. It is definitely related to the financial report.)
If you look closely at each quarter's data, the loss of over 100 million seems to have a minimal impact.
(On the computer, you can see that the revenue for last year, 2023, indeed suddenly increased in the fourth quarter. Is it really due to year-end accounting?)
Looking closely at the financial report gives a relatively healthy impression?
(The changes in relevant indicators suggest a clear state of fundraising for production, which may be a major reason for the increase.)
(A significant amount of asset impairment losses was recognized. Is it due to equipment upgrades?)