HSPC Stock Hits 52‑Week High After $0.8B Semiconductor Acquisition

HSPC Stock Surge Amid Semiconductor Acquisition Announcement

On 18 November 2025, Hunan Heshun Petroleum Co., Ltd. (HSPC) experienced a significant trading event, with its share price reaching a new 52‑week high of 30.83 CNY after a 9.99 % increase to the daily limit. The move was triggered by the company’s public disclosure of a planned acquisition of Shanghai Kuixing Integrated Circuit Design Co., Ltd. (Kuixing Tech), a semiconductor IP firm.

Acquisition Details

• Target: Kuixing Tech, a provider of high‑speed interface IP products.
• Structure: Cash‑based purchase of at least 34 % equity combined with a share‑holding transfer that would grant HSPC 51 % voting control through a voting‑rights delegation agreement.
• Estimated Transaction Size: No more than 5.4 billion CNY (≈ $0.8 billion USD).
• Strategic Rationale: HSPC seeks to diversify its business beyond the traditional fuel retail and logistics segment, entering the high‑growth semiconductor industry.

Market Reaction

• Price: The share price touched the daily limit at 30.83 CNY, reflecting a 9.99 % increase from the previous close.
• Volume: Trading volume exceeded 13.39 million shares (≈ 1338 k CNY) on the day of the announcement, indicating robust investor interest.
• Market Capitalisation: At the new price, HSPC’s total market value reached approximately 58.3 billion CNY, with a free‑float market value of about 57.8 billion CNY.
• Liquidity: The 1‑minute average turnover rate during the session was 1.79 %, a modest rise compared with the typical 1.73 % for the Shanghai Stock Exchange.

Investor Sentiment and Trading Activity

The stock was highlighted on several trading platforms:

• Xueqiu: Multiple posts noted the “second consecutive limit‑up” (二连板) and emphasized the potential for a “capital gamble” given the company’s current earnings pressure.
• Eastmoney: The “stock abnormal volatility” alert was issued following the announcement of the acquisition plan, confirming that the share price had deviated from historical ranges by more than 20 % over two trading days.
• Liquidity Providers: Institutional buyers such as Yinxing Securities and Zhongtai Securities reported net inflows of several million CNY, contributing to the price surge.

Fundamental Context

Analysis of the Acquisition Impact

1. Diversification: The move into semiconductor IP represents a strategic pivot, potentially offsetting the declining earnings trend in HSPC’s core fuel retail business.
2. Cash Flow Considerations: HSPC’s management highlighted plans for improving cash flow, a key driver behind the market’s positive reaction despite recent quarterly revenue and profit declines.
3. Governance: The announcement included a note that the controlling shareholder and its affiliated parties would transfer a portion of shares to Kuixing Tech’s controlling shareholder, a move deemed non‑disruptive to HSPC’s control structure.
4. Risk Factors: Kuixing Tech reported a net loss for the first half of 2025, and HSPC’s own financials for 2023‑2025 show declining revenue and profit. Market participants remain cautious about the long‑term profitability of the acquisition.

Conclusion

The 18 November 2025 limit‑up of HSPC’s shares reflects market enthusiasm for the company’s announced entry into the semiconductor sector. While the acquisition offers a potential new growth avenue, it also introduces significant risk due to the target’s current loss status and HSPC’s ongoing earnings pressure. Investors will likely monitor subsequent financial disclosures and operational integration progress to assess the long‑term value creation of this strategic diversification.