People's Tongtai (600829) Limit-up Analysis: Policy-driven and Market Sentiment Resonance

People’s Tongtai (600829) has performed strongly recently, hitting the daily limit for 5 consecutive trading days from November 10 to 14, 2025, with a weekly gain of 61.13% [2]. The company’s market capitalization increased from 5.213 billion yuan at the beginning of November to 8.774 billion yuan, a growth rate of approximately 68% [2]. The main driving factors include favorable policies for the big health industry (such as the “Healthy China 2030” Planning Outline) [5], and the company’s position as a regional leader as the largest pharmaceutical distribution enterprise in Heilongjiang Province [5]. However, the 2025 Q3 report shows revenue growth without profit growth: operating revenue was 7.846 billion yuan, a year-on-year increase of 2.19%, but the net profit attributable to parent company shareholders was 112 million yuan, a year-on-year decrease of 45.69% [3]. The company’s actual controller is the State-owned Assets Supervision and Administration Commission of Harbin Municipality, with a shareholding ratio of 74.82% [0].

1. Policy and Market Sentiment Resonance
   : Although the fundamentals are weak, policy support for the big health industry (expected to reach 17.4 trillion yuan in 2025 and 29.1 trillion yuan in 2030 [5]) has driven market enthusiasm for related concept stocks, including the pharmaceutical commercial sector where People’s Tongtai is located (up for 6 consecutive days [5]).
2. Regional Leader Advantage
   : As the largest pharmaceutical distribution enterprise in Heilongjiang Province, the company has strong channel and resource advantages in the regional market, which may have enhanced investors’ confidence in its long-term development [0].
3. Dual Impact of State-owned Background
   : The holding by the State-owned Assets Supervision and Administration Commission of Harbin Municipality (74.82%) may bring policy resources and stability to the company, but it may also limit the flexibility of its market-oriented operations [0].

• Mismatch between Valuation and Fundamentals
  : The short-term stock price increase significantly exceeds the improvement in fundamentals (net profit decreased by 45.69% [3]), so there is a risk of correction.
• Speculative Trading Risk
  : Continuous limit-ups may attract short-term speculative funds, exacerbating stock price volatility [6].

• Sustained Policy Dividends
  : Long-term policy support for the big health industry (such as “Healthy China 2030”) provides growth space for the company [5].
• Regional Market Integration
  : As a regional leader, the company is expected to benefit from the integration trend in the pharmaceutical distribution industry [0].

The recent limit-ups of People’s Tongtai (600829) are mainly driven by favorable policies for the big health industry and market sentiment, although its 2025 Q3 report shows a decline in net profit. Investors should pay attention to the progress of policy implementation and the match with the improvement of the company’s fundamentals, while noting the risk of short-term stock price volatility.