Yuan Jie Technology Joins the Ranks of A-Share Thousand-Yuan Stocks, Can Performance Support Over 500x P/E Ratio as Key Question

CPO Concept Stock Yuanzhi Technology (688498.SH) saw its stock price hit a 20% daily limit at one point, rising to a high of 1,140 yuan per share, surpassing Cambrian (688256.SH) to become the second “thousand-yuan stock” in the A-share market, only behind Kweichow Moutai (600519.SH). At the close, the company’s stock price was 1,114.99 yuan per share, up 17.37%, with a total market capitalization of 95.83 billion yuan, just a step away from 100 billion. This performance sparked market discussions on whether it can maintain its high level.

Yuanzhi Technology was founded in 2013 and listed on the STAR Market in December 2022. Its main business is the research, design, and sales of optical chips, widely used in telecommunications, data centers, and automotive lidar fields. The company’s controlling shareholder and actual controller is ZHANG XINGANG, who directly holds 12.29% of shares. Although the stock price hovered around hundreds of yuan due to weak performance after listing, the explosive growth in global AI computing power demand in 2025 has created a new opportunity for the optical chip industry, leading to a significant rebound in Yuanzhi Technology’s performance.

According to the performance quick report, in 2025, Yuanzhi Technology achieved operating revenue of 601 million yuan, a year-on-year increase of 138.5%; net profit attributable to shareholders was 191 million yuan, turning profitable from a loss. The company stated that the increase in data center business revenue and product structure optimization are the main drivers, with high gross margins in data center products significantly boosting profits. The company also participated in equity investments through private equity funds, with valuation increases of invested companies providing additional support to its performance.

In terms of capital operations, Yuanzhi Technology has been active. On February 9, the company announced a 1.251 billion yuan investment to build a second-phase R&D and manufacturing base for optoelectronic communication semiconductor chips and devices, focusing on high-speed optical chips; simultaneously, it plans to use 98.62 million yuan of oversubscribed funds to increase investment in the “50G Optical Chip Industrialization Construction Project.” On March 7, the company further disclosed plans to issue overseas-listed shares and apply for listing on the Hong Kong Stock Exchange main board to promote internationalization and global expansion.

However, high valuation and funding pressure remain key concerns. Currently, Yuanzhi Technology’s P/E ratio (TTM) is 501.93 times, and its P/B ratio is 44.13 times, far exceeding the industry median of 150.30 and 20.51 times, respectively. Despite a low asset-liability ratio of less than 10%, the company has only 9.33 billion yuan in cash, while ongoing projects require continuous investment, which could pose a funding challenge.

Looking back, Yuanzhi Technology’s performance has been volatile since listing. In 2022, revenue was 283 million yuan, up 21.89%; net profit was 100 million yuan, up 5.28%. In 2023, due to weaker-than-expected sales in telecom and data center markets and intensified product price competition, revenue plummeted to 144 million yuan, down 48.96%; net profit was 19.5 million yuan, down 80.58%. In 2024, performance further deteriorated, with revenue rebounding to 252 million yuan, up 74.63%, but net loss attributable to shareholders was 6.13 million yuan, a decline of 131.49%.

Market analysis indicates that Yuanzhi Technology’s current stock price already reflects expectations of improved performance. Whether it can sustain its “thousand-yuan stock” status depends on its ability to continue growing earnings to digest the high valuation. Additionally, the success of its multi-billion capital expenditure plans and progress in overseas listing will be critical factors influencing the company’s future trajectory.