Shengu Group's (601091.SH) stunning debut on the A-share main board has extended into a second day of extreme volatility, with shares skyrocketing an additional 177.74% on Thursday. The stock opened nearly 28% lower at 14.68 yuan before staging a dramatic intraday reversal, surging to within 300% of its opening price and touching nearly 80 yuan, before closing at 57.77 yuan. Trading volume exceeded 4.8 billion yuan with turnover rate approaching 90%, pushing the company's market capitalization above 179.6 billion yuan.
This explosive performance follows Wednesday's debut when Shengu Group opened 196.13% higher and triggered two trading halts as gains expanded to 285% and then 373%. The stock has now triggered four trading halts across its first two sessions, with Wednesday's closing price representing 13 times its IPO price. Retail investors on trading platforms have dubbed the stock a "god stock" amid the remarkable price action.
According to its prospectus, Shengu Group operates as a strategic, pillar enterprise in China's general machinery industry, undertaking the domestic production of major technical equipment and complete solutions for petroleum, chemical, electric power, natural gas, and new energy sectors. The company stands among a select group of global manufacturers capable of independently designing and producing large complex compressors and high-end nuclear main pumps. Frost & Sullivan data shows Shengu ranked first in China's large heavy-duty centrifugal compressor market share in 2024, along with a leading position in process reciprocating compressors. The company held second place in China's nuclear main pump order volume with 36 units for third-generation nuclear power units in operation or under construction, while commanding a 69.2% share of the shielding main pump segment, ranking first in the industry.
Financially, Shengu Group reported revenues of 8.206 billion yuan, 9.309 billion yuan, and 10.122 billion yuan for fiscal years 2023 through 2025, with net profits attributable to shareholders of 355 million yuan, 442 million yuan, and 739 million yuan respectively. For the first half of 2026, revenue grew 3.6% year-over-year to 4.893 billion yuan, though net profit dipped 2.28% to approximately 280 million yuan. The company attributed the profit decline to reduced non-recurring gains, higher R&D spending, and exchange losses from currency depreciation that increased financial expenses. Operating cash flow turned negative at approximately -1.017 billion yuan for the period, reflecting delayed collections from domestic short-term order fluctuations linked to policy changes, reduced overseas orders and extended payment cycles from geopolitical factors, ongoing project stocking requirements, and seasonal client payment patterns.
Management projects net profit for the first nine months of 2026 to decline between 8.13% and 23.83% year-over-year, with full-year 2026 net profit expected to fall between 10.75% and 15.34%. The prospectus reveals major customers including China Petrochemical Corporation, China National Petroleum Corporation, China National Offshore Oil Corporation, and State Power Investment Corporation, with the top five customers collectively accounting for 40.96% of 2025 sales. Proceeds from the offering, net of issuance costs, will fund four projects: a green and efficient major technical equipment industrialization project, R&D and digital construction initiatives, a clean energy green factory project, and a nuclear pump pilot test base project.
This content is for reference only and does not constitute investment advice. Market participants should exercise caution at their own risk.