Xinlong Holdings (000955) Limit-Up Analysis on November 17, 2025: Driven by Dual Factors of Policy Dividends and Financial Improvement

Xinlong Holdings (000955) hit the limit-up at 9:37 on November 17, 2025 [2], with a closing price of 7.65 yuan and a 3.66% increase. This limit-up was mainly driven by multiple factors:

1. Policy Dividends
   : Hainan Free Trade Port’s full closure policy will start on December 18, 2025, implementing preferential policies such as “zero tariff” [7]. As a local Hainan enterprise, Xinlong Holdings directly benefits from industry opportunities brought by this policy [0].
2. Financial Improvement
   : The company’s performance improved significantly in 2025; first-half net profit attributable to parent company reduced losses by 93.18% YoY, non-recurring net profit reduced losses by 72.37%, and operating cash flow turned from negative to positive [3]. Business structure adjustment achieved obvious results; non-woven new material business accounted for 71.07% of revenue, and core business gross margin reached 10.45% [0].
3. Sector Linkage
   : Hainan sector was strong overall; the market chased free trade port concept stocks, leveraged funds actively intervened in Hainan sector stocks, forming a sector linkage effect [0].
4. Capital Observation
   : Notably, main funds net sold 69.0609 million yuan on the day [1], showing signs of profit-taking by some institutional funds.

1. Policy and Performance Resonance
   : Hainan Free Trade Port policy dividends and the company’s own financial improvement formed resonance, becoming the core driving factor for this limit-up. This dual support of “policy + fundamentals” enhanced market confidence [0][7].
2. Business Transformation Value
   : The company took non-woven new material business as its core; revenue share increased to 71%, and gross margin improved, indicating initial success of business transformation and enhanced long-term competitiveness [0][3].
3. Market Sentiment and Capital Divergence
   : Although the stock price hit limit-up, main capital outflow indicated short-term market divergence; follow-up capital flow changes need attention [1][2].

• Short-term Profit-taking Risk
  : Main funds net selling may trigger short-term correction [1].
• Policy Implementation Progress Risk
  : Uncertainty exists in the implementation effect of free trade port policy; follow-up details need tracking [7].
  
  Opportunities
  :
• Continuous Release of Policy Dividends
  : After Hainan Free Trade Port’s closure, zero tariff policy will reduce the company’s raw material cost and increase profit margin [0][7].
• Business Growth Potential
  : Expansion of non-woven new material business is expected to drive future revenue growth [0][3].

Xinlong Holdings (000955) hit the limit-up on November 17, 2025, mainly driven by factors such as Hainan Free Trade Port policy dividends, improved financial status, business structure adjustment, and sector linkage. Although there was a divergence signal of main capital outflow in the short term, long-term policy support and dual benefits of business transformation provide support for the company’s development. Investors should pay attention to policy implementation progress, follow-up financial data, and capital flow changes to make rational decisions.