Elegant Home-Tech announced a trading suspension starting August 11 for a review, as the company's stock hit the daily upper limit for 11 consecutive trading days from July 21 to August 10, with the share price surging 185.56 percent in a short period and significantly deviating from fundamentals. The company had previously suspended trading from August 3 to 5 for a review, when the cumulative share price increase had reached 135.77 percent, and resumed trading on August 6. As of the close on August 10, Elegant Home-Tech closed at 27.30 yuan, with a static price-to-earnings ratio of 385.03 times, far exceeding the industry average of 28.40 times. The company also cautioned that the major plan to acquire no less than 77.08 percent equity in Oconnor with cash involves uncertainties, and the target company operates in the storage testing equipment industry, facing strong cyclical risks and being relatively small in scale.
Zhangjiagang Elegant Home Tech Co LtdTrading suspension and review due to excessive price surge, with P/E far above industry average and acquisition uncertainties.
