Analysis of the Reasons and Sustainability of Xiangyu Medical (688626) Strong Performance

Xiangyu Medical (688626) hit the 20% limit-up on the Science and Technology Innovation Board for two consecutive trading days on January 5 and 6, 2026, with the closing price rising from 60.50 yuan on December 31, 2025 to 87.12 yuan [[0]].

: Neuralink, a subsidiary of Tesla in the US, announced that it will start mass production of BCI devices in 2026 [[1]][[3]]. After the news spread to China on January 5, the A-share BCI sector index rose more than 12% intraday [[1]][[3]], and more than 20 stocks in the sector hit the limit-up simultaneously [[1]][[3]].

As a leading domestic rehabilitation medical device enterprise, Xiangyu Medical directly linked to BCI technology by establishing the

[[2]], becoming a core beneficiary in the concept outbreak. From a technical perspective, the company’s stock trading volume increased significantly: the trading volume on January 5 was 2.3 times the historical average [[0]], and further rose to 3.66 times on January 6 [[0]], indicating obvious capital inflow; meanwhile, the 20-day, 50-day, and 200-day moving averages all showed an upward trend [[0]], with a strong medium-to-long-term technical pattern. In terms of market sentiment, the largest medical device ETF in the market (159883) had a net subscription of over 500 million shares on January 6 [[4]], and this ETF heavily holds core BCI targets like Xiangyu Medical; the discussion volume about the company on the Eastmoney Stock Bar platform also increased significantly [[5]].

1. Market enthusiasm for tech-medical integration
   : The outbreak of the BCI concept reflects the capital market’s high attention to the “tech + medical” track, especially the application potential of BCI in rehabilitation. Xiangyu Medical quickly linked the hot concept to its own business through its existing BCI lab layout.
2. Significant sector linkage effect
   : More than 20 BCI concept stocks hit the limit-up simultaneously [[1]][[3]], showing the collective profit-making effect of the concept sector, while the large net subscription of the Medical Devices ETF [[4]] reflects institutional funds’ willingness to allocate to this track.
3. Resonance between technical and sentiment aspects
   : The increase in trading volume resonates with the technical pattern of consecutive limit-ups, further strengthening market sentiment and driving the stock price to rise rapidly in the short term.

1. Overvaluation
   : The company’s current PE (TTM) is 182.73x [[0]], far higher than the average level of the medical device industry; we need to be alert to the risk of valuation bubbles.
2. Concept-driven mainly
   : The company’s current main business is rehabilitation medical devices; its BCI-related business is still in the early stage and has not generated large-scale revenue [[1]], and the stock price rise mainly relies on concept sentiment.
3. Short-term correction risk
   : After two consecutive 20% limit-ups, the short-term gain is huge; profit-taking may trigger a correction due to concentrated selling.

The application of BCI technology in rehabilitation has long-term potential. If Xiangyu Medical can transform lab results into commercial products, it is expected to provide new impetus for the company’s long-term performance growth, but we need to pay attention to subsequent business progress.

Xiangyu Medical’s recent strong performance is mainly driven by the outbreak of the BCI concept, and the company has established technical links through its BCI lab. Technically, it shows a strong pattern of rising volume and price, with high market sentiment, but fundamental support is limited (BCI business has not generated scale revenue) and current valuation is too high. Investors need to pay attention to the sustainability of the concept sector, the progress of the company’s BCI business, and short-term correction risks.