
Revenue growth but profit decline, there is a gap between fundamentals and stock price growth
AI-generated summary
Dongtai (4526) is a major machine tool and smart manufacturing manufacturer in Taiwan. Its stock price has performed strongly recently, hitting the daily limit for two consecutive days on Monday and Tuesday. The company's self-revenue revenue in September reached 707 million yuan, an increase of 81% year-on-year, but the net profit after tax was only 11 million yuan, a year-on-year decrease of 68%, and the net profit per share was 0.04 yuan.
The stock price of Dongtai (4526) performed strongly. After hitting the daily limit on Monday (9th), it opened sharply again today (10th). The daily limit light was turned on in a short time. The stock price reached 59.6 yuan, attracting market attention for two consecutive trading days.
Dongtai opened at 56 yuan today, rising 1.8 yuan at the opening. Later, with the active entry of buying orders, the stock price quickly reached the daily limit of 59.6 yuan. As of 9:20 a.m., the trading volume has exceeded 10,000 contracts, and the number of contracts bought by the daily limit committee has exceeded 10,700, indicating that the market is very willing to pursue prices.
The continuous lights on Dongtai also triggered heated discussions among investors. Many investors left messages on the social platform saying "keep flying", "light up the lights and call it a day", "go emergency", etc. Market sentiment has obviously increased.
However, from a fundamental perspective, Dongtai's recent revenue and profit performance have not grown simultaneously. The company previously announced that its self-financed revenue in September reached 707 million yuan, an annual increase of 81%, and the revenue scale has significantly expanded; however, the net profit after tax during the same period was only 11 million yuan, a year-on-year decrease of 68%, and the net earnings per share (EPS) was 0.04 yuan, showing a gap between revenue growth and profit decline.
The follow-up focus of legal persons and the market will be whether Dongtai can continue to expand its revenue scale and further improve profitability. As stock prices continue to rise and short-term buying orders are pouring in, whether operating fundamentals can keep up with the rising stock price will also become an important indicator for investors to observe next.

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