688047:SSELoongson Technology Corp. Ltd. Class A Analysis

Loongson’s shares are trading at CNY 146.12, which sits below the 20‑day (CNY 153.87) and 50‑day (CNY 154.55) simple moving averages, signaling short‑term weakness. The bearish MACD (‑2.53 line vs. ‑1.60 signal) and a neutral RSI of 43 reinforce downside momentum, while the 30‑day volatility of 52% and a negative beta of ‑0.17 suggest the stock is highly reactive to market swings. Technical support lies near CNY 141.48 and resistance at CNY 167.77, and the market’s “Extreme Greed” sentiment (79.45 on the Fear‑Greed Index) may be inflating price expectations.
Fundamentally, the company posted CNY 635 million in revenue with a robust 44.9% growth rate, yet it is operating at a steep loss – operating margin of ‑30.5% and net profit margin of ‑71.4%, with negative EPS of ‑1.68. Valuation multiples are extreme (P/B 22.9×, P/S 92.2×) and the debt‑to‑equity ratio of 2.06, despite a solid cash balance of CNY 516 million, underscores financial strain. No dividend is paid, and cash‑flow generation is nil. These dynamics paint a picture of an overvalued, high‑risk semiconductor play despite top‑line growth.