Analysis of Why Kangzhi Pharmaceutical Is Trending: Driven by Policy Dividends and Institutional Funds

Kangzhi Pharmaceutical (300086.SZ) has become a trending stock due to the triple resonance of policy dividends, capital flows, and industry fundamentals. As a pharmaceutical company focusing on children’s medicine, the company performed prominently on November 14, 2025, with its stock price rising by the 20% daily limit to 10.62 yuan, and a year-to-date increase of 64.81% [0].

: The 100-day countdown to the closed operation of Hainan Free Trade Port has become a key catalyst. As a leading local children’s medicine enterprise in Hainan, Kangzhi Pharmaceutical directly benefits from the “zero tariff” policy on medicines, which will significantly reduce raw material costs and improve profitability [1][6]. At the same time, the “15th Five-Year Plan” clearly proposes to support the development of innovative drugs and medical devices, providing policy support for the entire pharmaceutical sector [2].

: Institutional funds are actively positioning. Dragon and Tiger List data on November 14 shows that institutional net purchases amounted to 91.8537 million yuan, ranking among the top three in the market in terms of single-day net purchases, with main capital net inflow reaching 258 million yuan [3][5]. The turnover on that day was 1.242 billion yuan, with a turnover rate of 28.34%, indicating extremely high capital activity [0].

: Reflected in the company’s leading position in the children’s medicine segment. The company mainly engages in children’s medicine, with a revenue scale of 739 million yuan, and has first-mover advantages and brand influence [0]. The current raging flu epidemic further drives the activity of the pharmaceutical sector, and the demand for the company’s related products is expected to increase [0].

: This is the core logic of this market trend. The Hainan Free Trade Port policy is no longer a concept speculation but has entered a stage of substantial performance realization, bringing real benefits to local pharmaceutical enterprises [1][6]. This shift from “expectation-driven” to “performance realization” enhances the market’s certainty about Kangzhi Pharmaceutical’s future performance growth.

: Reflects the recognition of professional investors for the company’s value. Institutional net purchases of 91.8537 million yuan not only provide capital support but also, more importantly, convey a value signal [3][5]. In the current market environment, concentrated inflow of institutional funds often indicates that there is still room for stock price growth.

: Is also an important factor. As a leading enterprise in the children’s medicine segment, Kangzhi Pharmaceutical has strong bargaining power and growth space under the dual impetus of policy support and market demand [0]. With the gradual emergence of the three-child policy effect and the improvement of residents’ health awareness, the children’s medicine market has broad prospects.

:

1. The cost advantages brought by the closed operation of Hainan Free Trade Port will continue to be released [1][6]
2. Dual growth of policy support and market demand in the children’s medicine segment [0][2]
3. Continuous attention from institutional funds may lead to further valuation repair [3][5]

:

1. The stock price has risen sharply in the short term, with technical adjustment pressure
2. Policy benefits take time to realize, and short-term performance may fall short of expectations
3. The pharmaceutical industry as a whole is affected by policies such as centralized procurement, with policy uncertainty

: The countdown to the closed operation of Hainan Free Trade Port has entered the final 100 days, and the pace of related policy implementation will be a key observation point [1][6].

Kangzhi Pharmaceutical’s trending status reflects the market’s high recognition of the policy dividends of Hainan Free Trade Port. As a leading enterprise in the children’s medicine segment, driven by multiple favorable factors such as policy support, capital attention, and industry prosperity improvement, the company shows strong investment attractiveness. The daily limit on November 14 and large-scale institutional buying [3][5] mark the market’s rediscovery of its investment value.

From a fundamental perspective, the company’s revenue scale of 739 million yuan and professional positioning in the children’s medicine field [0] lay the foundation for it to gain a larger share of the policy dividends of Hainan Free Trade Port. As policies shift from expectation to realization, the company is expected to achieve performance growth driven by both cost reduction and market expansion.

Investors should focus on the specific progress of the closed operation of Hainan Free Trade Port, the company’s performance realization, and policy changes in the pharmaceutical industry; these factors will determine the sustainability of Kangzhi Pharmaceutical’s subsequent trend.