Luyan Pharmaceutical (002788) - Reasons for Limit-Up and Trend Analysis

1. Policy Catalysis
   : Hainan Free Trade Port achieved full customs clearance on December 18, 2025. The company has a strategic layout in Hainan, aiming to become a key player in the local pharmaceutical distribution sector, and is expected to benefit from policy dividends in cross-border medical business [1].
2. Fundamental Support
   : The company is a leading pharmaceutical distributor in Fujian Province, ranking 15th in the national drug wholesale industry. Its strong industry position provides basic support for the stock price [1].
3. Concept-driven
   : The Cross-Strait concept has become a market hotspot, driving emotional growth of the company’s stock [1].
   The company has issued a statement confirming no undisclosed major internal or external changes or information, indicating that this limit-up is dominated by external factors [1].

As of December 23, 2025, the company’s stock has hit the limit-up for 5 consecutive days, with a closing price of 18.50 yuan, trading volume of approximately 17.24 billion yuan, and a turnover rate of 25.91%, showing highly active market trading [1]. Dragon and Tiger List data shows institutional investors are divided, with some net buying and some net selling, but the cumulative net buying over 3 days is about 670 million yuan, reflecting certain institutional support [1].

1. Superimposed Effect of Policy and Fundamentals
   : The short-term catalysis of Hainan Free Trade Port policy resonates with the company’s strong pharmaceutical distribution strength, amplifying market expectations for its cross-border medical business.
2. Contradiction Between High Turnover Rate and Institutional Behavior
   : The high turnover rate of 25.91% reflects high market sentiment, but the divided operations of institutions suggest that short-term volatility risks may intensify.
3. Sustainability of Concept-driven Growth is Doubtful
   : The company’s statement does not involve business progress related to the Cross-Strait concept, so the sustainability of concept speculation remains to be seen.

1. Policy Dividends Landing
   : After the full customs clearance of Hainan Free Trade Port, the company’s cross-border medical business may see substantial growth.
2. Industry Position Advantage
   : As a top 15 national pharmaceutical distributor, it has the basic conditions to fully utilize policy dividends.

1. Short-term Correction Risk
   : After consecutive limit-ups, the market may face overheating correction pressure.
2. Policy Implementation Time Lag
   : There is uncertainty and a time lag in converting policy dividends into actual business growth.
3. Institutional Division Intensifies Volatility
   : The intertwined long and short operations of institutions may intensify short-term stock price volatility.

In the short term, close attention should be paid to policy implementation progress and institutional capital flow; in the long term, track the actual growth of the company’s business. The full customs clearance of Hainan Free Trade Port is a recent hot event, and the short-term emotional impact is relatively significant.

Luyan Pharmaceutical (002788)'s limit-up is mainly driven by Hainan Free Trade Port policy, pharmaceutical distribution fundamentals, and the Cross-Strait concept. Market trading is active, with institutions net buying about 670 million yuan over 3 days. The sentiment is overall bullish but obviously divided. The company stated there are no undisclosed major matters, and the rise is dominated by external factors. Short-term attention should be paid to overheating correction, while long-term attention should be on business growth driven by policies.