On November 8, Gelonghui (603779.SH) announced abnormal fluctuations in stock trading. From November 6 to November 8, 2023, the cumulative closing price of the company's stock increased by 21.47% over the three trading days. The average growth rate of the brewing industry during the same period was about 0.33%, and the Shanghai Composite Index rose 0.71% during the same period. The short-term increase in company stocks was significantly higher than the industry's growth and the Shanghai Composite Index during the same period, and there was a situation where market sentiment was too hot.
The stock price deviates from the reasonable valuation of listed companies in the same industry, and the stock price deviates from the company's fundamentals. On November 8, 2023, the company's stock price-earnings ratio (TTM) was 740.83, and the winemaking industry price-earnings ratio (TTM) for the same period was 25.12, which was significantly higher than the price-earnings ratio of the industry during the same period, and the stock price seriously deviated from the reasonable valuation of listed companies in the same industry. Investors are kindly requested to invest rationally and pay attention to investment risks.