Sichuan Haite High‑Tech Co., Ltd.: A Case of Over‑Valued Momentum in an Over‑heated Defence‑Tech Bubble
Sichuan Haite High‑Tech Co., Ltd. (海特高新) traded at CNY 11.99 on 2 December 2025, a price that sits 13 % below its 52‑week high and yet still delivers a staggering P/E of 69.36. Its market capitalization of 8.89 billion CNY belies the company’s modest earnings base, a fact that becomes clear when the stock’s recent surge is examined in the context of a broader, arguably irrational rally across the satellite‑navigation and defence‑technology sectors.
1. The Satellite‑Navigation Surge and Haite’s “Follow‑The‑Leader” Play
On 5 December 2025, the satellite‑navigation sector experienced a sharp intra‑day rally. 航天科技 hit its limit‑up, while 海特高新 joined a cohort of peers—航天发展, 久之洋, 航天软件, 航天晨光—each riding the same wave. This was not an isolated anomaly but the latest in a series of sector‑wide inflows that, according to the 国防军工行业12月4日资金流向日报, brought ¥13.89 billion of institutional capital into defence‑tech stocks on 4 December alone. The report lists 海特高新 among the 73 stocks that received net inflows, with a per‑share inflow figure that dwarfs its fundamental earnings profile.
The underlying logic that drives this influx is simple: investors believe that the expansion of commercial spaceflight, the construction of new launch sites, and the emergence of cost‑effective, reusable rockets (as highlighted in the 商业航天产业快速发展 report) will generate a sustained demand for aircraft and satellite maintenance services. Haite’s core business—maintenance, repair, and the development of inspection equipment for aircraft—positions it to benefit from this demand. Yet the company’s 52‑week low of CNY 8.30, coupled with a lack of earnings growth, suggests that the current price is more a reflection of speculative zeal than intrinsic value.
2. Technological Claims vs. Economic Reality
Haite’s narrative is reinforced by a series of “technological breakthroughs” reported across the industry. The 一年可为超大型AI算力中心省3亿度电 piece showcases the promise of gallium nitride (GaN) power modules, an emerging third‑generation semiconductor technology. Haite’s subsidiary, 华芯科技, has built China’s first 6‑inch compound‑semiconductor line, covering GaN, SiC, and arsenic‑based materials. While the potential of GaN to cut power losses by 30 % and shrink module size is enticing, the concept‑stage status of these modules means that any revenue upside for Haite is at least three to five years away.
In short, the company’s “high‑tech” tag is more of a marketing veneer than a proven revenue generator. The current market’s willingness to pay a 69× P/E ratio for a company whose core earnings remain flat is a textbook example of hype outpacing fundamentals.
3. Funding Inflows and the Risk of a “Bubble”
Institutional money is the lifeblood of the current rally, but it is also the harbinger of potential collapse. The 国防军工行业 report shows ¥13.89 billion of net inflows, with ¥9.33 billion directed to China Satellite and ¥8.74 billion to 航天电子—both of whom share similar business models with Haite. When such a concentrated infusion of capital flows into a handful of firms, the market price is driven by liquidity rather than earnings.
This is exactly the scenario that precipitated the 2015–2016 Chinese “defence‑tech bubble,” where P/E ratios climbed to unsustainable levels and then collapsed when the earnings gap widened. Haite’s current price trajectory is echoing those same dynamics: a speculative bubble fueled by institutional optimism about commercial spaceflight, rather than a genuine earnings expansion.
4. Conclusion: An Overpriced Bet on a Still‑Unproven Future
Sichuan Haite High‑Tech Co., Ltd. stands at the crossroads of an industry that promises enormous growth and an investor base that has already over‑valued that promise. Its 69× P/E, modest earnings, and the lack of any clear, near‑term revenue from its GaN‑related projects make the stock an excessively risky proposition.
The sector’s short‑term momentum—bolstered by satellite‑navigation gains, institutional inflows, and the allure of third‑generation semiconductors—has pushed Haite’s price above its fundamental worth. Investors must ask themselves: Is this a legitimate investment in a nascent industry, or a speculative bet on a future that may never materialise? The evidence, as it stands, leans heavily toward the latter.
