Sunrise New Energy Plummets 20% Amid Profitability Surge and Grant Hype – What’s Next?

Summary
• Sunrise New Energy (EPOW) plunges 20.53% intraday to $0.89, erasing $0.23 from its value.
• Company reports $0.57 million net profit in July-August 2025, marking a sharp turnaround.
• RMB 4.3 million government grant announced Thursday sparks mixed market reactions.

The stock’s volatile session reflects a clash between bullish fundamentals and bearish technicals. Despite a strong earnings report and capacity expansion plans, EPOW’s price action suggests short-term profit-taking or skepticism over sustainability. Traders are now scrutinizing whether the drop is a buying opportunity or a warning sign.

Profitability Gains and Grant Fuel Volatility
Sunrise New Energy’s 20.53% intraday decline defies its recent profitability surge, driven by July-August net profits of $0.57 million and a government grant. The drop likely stems from profit-taking by short-term traders who had bought on the news, coupled with skepticism about the company’s ability to sustain margins. The grant, while supportive, may have been priced in quickly, leaving the stock vulnerable to profit-taking. Additionally, the stock’s dynamic PE ratio of -2.04 highlights ongoing valuation challenges, as investors weigh near-term gains against long-term risks.

Electrical Equipment Sector Mixed as GrafTech (EAF) Trails
The Electrical Equipment & Parts sector remains fragmented, with GrafTech (EAF) down 0.30% intraday. While EPOW’s drop is steeper, the sector’s lack of direction suggests broader caution. GrafTech’s modest decline reflects sector-wide jitters over input costs and demand, but EPOW’s sharp move indicates stock-specific pressures. Investors are comparing EPOW’s cost-cutting progress with GrafTech’s reliance on traditional graphite markets, though EPOW’s in-house production shift offers a unique edge.

Technical Divergence and ETF Implications
• MACD: 0.0012 (bullish), Signal Line: -0.0135 (bearish), Histogram: 0.0147 (divergence).
• RSI: 72.28 (overbought).
• Bollinger Bands: Price at $0.89 (near lower band of $0.74).
• 200-Day MA: $0.9157 (current price below).

Technical indicators signal a short-term overbought condition with bearish divergence. The RSI at 72.28 suggests potential for a pullback, while the 200-day MA acts as a critical resistance. A break below $0.84 (intraday low) could trigger further selling. Given the absence of options liquidity, traders should focus on ETFs like XLB (Materials Select Sector SPDR) for sector exposure. A 5% downside scenario (to $0.85) would test support at $0.84, with a 10% drop (to $0.80) risking a breakdown of the 52-week low of $0.70.

Backtest Sunrise New Energy Stock Performance
I tried to construct the event list you requested (-21 % or larger intraday plunge) and then run an event-study back-test from 2022-01-01 to today. However, two issues surfaced:1. No trading days met the “-21 % daily close-to-close” criterion, so the event list the system generated was empty. 2. Intraday (high–low) draw-down is not available through the indicator we queried, so the engine could not identify the intended events.Because the engine received an empty event list, the statistical routine ran into a divide-by-zero error and aborted.Possible ways to proceed:A. Use daily close moves instead of intraday moves and slightly relax the threshold (e.g., -20 % or -15 %) to make sure there are events to analyse. B. Retrieve intraday high/low data and recompute “intraday draw-down” manually (if that data is acceptable to you). C. Supply specific dates you are interested in and I can back-test from those manually.Please let me know which option you prefer (or another approach you have in mind), and I’ll set up the back-test accordingly.

Bullish Fundamentals vs. Bearish Momentum: What to Watch Now
Sunrise New Energy’s sharp decline masks a complex narrative of progress and skepticism. While the company’s cost-cutting and capacity expansion are promising, technicals suggest a short-term bearish bias. Investors should monitor the 200-day MA at $0.9157 as a key level; a rebound above this could reignite optimism. GrafTech’s -0.30% move underscores sector caution, but EPOW’s unique in-house production edge may yet attract buyers. Act now: Watch for a $0.84 breakdown or a bounce above $0.9157 to determine next steps.