Analysis of Hainan Haiyao's Strong Performance: Driven by Free Trade Port Policy Dividends to Limit-Up

The core driver of Hainan Haiyao’s strong performance comes from the policy dividends of the closure operation of Hainan FTP. According to policy planning, Hainan FTP will implement island-wide closure operation on December 18, 2025, introducing the “zero tariff, low tax rate, simplified tax system” policy [4]. As a local comprehensive pharmaceutical company in Hainan, Hainan Haiyao will directly benefit from this major policy change, especially in terms of medical import tariff reductions and tax incentives.

Meropenem for injection from Haikou Pharmaceutical Factory Co., Ltd., a wholly-owned subsidiary of the company, passed the generic drug consistency evaluation and obtained the approval notice from the National Medical Products Administration (NMPA) [1][2][3]. This breakthrough not only enhances the product’s market competitiveness but also lays the foundation for the company’s future performance improvement. As an important antibiotic variety, meropenem for injection is expected to gain an advantageous position in centralized procurement after passing the consistency evaluation.

Hainan Haiyao surged to a 10.08% limit-up on November 14, 2025, becoming one of the leading stocks in the Hainan sector [4]. This reflects the market’s strong expectations for the closure policy of Hainan FTP and the market sentiment of the overall strength of the Hainan sector against the trend. As a local pharmaceutical enterprise in Hainan, the company has become a focus target of capital attention.

It is worth noting that Hainan Haiyao’s financial performance in the first three quarters of 2025 was still poor, with operating revenue of 640 million yuan and net profit attributable to parent company of -242 million yuan, remaining in a loss state [0]. However, the strong performance of the stock price reflects the market’s expectation for the company’s future improvement, and this divergence between fundamentals and stock price needs continuous attention.

Although the Hainan FTP policy brings positive expectations for Hainan Haiyao, the actual benefit degree of the company still needs to be observed. The company’s pharmaceutical-related revenue is 1.9 billion yuan, covering chemical drugs, biological drugs and other fields [4], and there is a time lag in the transmission effect of policy dividends and the actual profit improvement effect.

The pharmaceutical and biological industry is greatly affected by the policy cycle. The pharmaceutical and biological policy support of Hainan FTP includes tariff exemption for imported drugs and medical devices, policy superposition of Lecheng Medical Pilot Zone, etc. [4]. The implementation effect of these policies and the cyclical fluctuations of the industry will affect the sustainability of Hainan Haiyao’s performance.

1. Risk of Sustained Losses
   : The company lost 242 million yuan in the first three quarters; if the operating conditions fail to improve in time, there is a risk of sustained losses [0]
2. Uncertainty in Policy Implementation
   : There are uncertainties in the specific implementation rules of the closure policy of Hainan FTP and the actual benefit degree of the company
3. Risk of Overvaluation
   : In the case of poor fundamentals, the rapid rise in stock price may have the risk of valuation bubble

1. Policy Dividend Release Period
   : The closure operation of Hainan FTP on December 18, 2025 will bring substantial benefits to the company [4]
2. Expectation of Product Volume Growth
   : After passing the consistency evaluation, meropenem for injection is expected to make breakthroughs in centralized procurement and market promotion [1][2][3]
3. Sector Rotation Opportunity
   : The overall strength of the Hainan sector and the increase in market attention bring trading opportunities for individual stocks

The strong performance of Hainan Haiyao (000566) is mainly driven by the dual factors of the closure policy expectation of Hainan FTP and the product breakthrough of its subsidiary. Although the company’s current fundamentals are still in a loss state, the expected effect of policy dividends and the positive progress of the product line provide imagination space for the market. Investors should pay attention to the actual progress of the company’s performance improvement, the specific effect of policy implementation, and the rationality of the valuation level. In the short term, market sentiment and policy expectations may continue to support the stock price performance, but the medium and long-term trend still needs the support of fundamental improvement.