688047:SSELoongson Technology Corp. Ltd. Class A Analysis

The stock is trading at 158.57 CNY, just below the 20‑day SMA (160.30) but comfortably above the 50‑day (148.49) and 200‑day (143.56) averages, indicating a mixed trend. RSI sits at 50.1, suggesting neutral momentum, while the MACD histogram is negative and the signal line is bearish, pointing to short‑term downside pressure. Volume is increasing and 30‑day volatility is high at 53%, though beta is low (~0.3), meaning market‑wide moves have limited impact.
Fundamentally the company shows serious weakness: revenue grew modestly (8%) but operating margin is –63.7% and profit margin –64.8%, with negative EBITDA, operating cash flow and free cash flow indicating ongoing cash burn. Valuation is extreme – price‑to‑book of 26.5 and price‑to‑sales of 98.5 – and there is no dividend. Combined with a high debt‑to‑equity ratio relative to cash, the stock appears significantly overvalued and risky.