Comprehensive Analysis of the Reasons for Jiaying Pharmaceutical (002198)’s Limit-Up and Its Market Impact

Jiaying Pharmaceutical (002198) hit the limit-up on November 14, 2025, with an increase of 10.06% to 7.66 yuan [1][5]. The main capital net purchase on that day was 24.9562 million yuan [1][5], and the turnover rate was 5.43% [0]. The driving factors include: 1) Significant improvement in performance: The net profit attributable to parent company in the first three quarters of 2025 increased by 658.5% year-on-year, and non-net profit increased by 1171.96% [0]; 2) High financial health: Gross profit margin reached 56.41%, and debt ratio was only 8.48% [0]; 3) Policy support for the traditional Chinese medicine (TCM) industry: Special protection until the end of 2024 [0][7]; 4) Sustained capital inflows: The balance of margin trading and short selling was 239 million yuan [0]. However, the company was filed for investigation by the China Securities Regulatory Commission (CSRC) in May 2025 on suspicion of illegal information disclosure [3], and this matter is still ongoing, forming a potential risk.

1. Intertwined Financial Fundamentals and Regulatory Risks
   : The company’s excellent financial indicators (high gross profit margin, low debt ratio) coexist with the ongoing CSRC investigation, leading to divergence in market sentiment [0][3].
2. Policy Dividends and Business Potential
   : Policy support for the TCM industry and a rich product pipeline (covering cardiovascular and cerebrovascular, respiratory, etc.) [0] provide support for long-term growth, but the uncertainty of the investigation results may inhibit valuation improvement.
3. Stock Price Volatility Signal
   : The deviation value of the increase exceeded 20% within three trading days [2], reflecting increased market attention, but short-term fluctuation risks need to be vigilant.

• Risk Points
  : The final result of the CSRC’s investigation is uncertain. If illegal acts are confirmed, it may face consequences such as fines and investor claims [3], which will have a negative impact on the company’s reputation and stock price.
• Opportunity Window
  : The policy dividends of the TCM industry continue [0][7], the company’s performance growth is strong and its financial condition is healthy. If there are no major negative results from the investigation, it is expected to further benefit from industry development.

The recent limit-up of Jiaying Pharmaceutical (002198) is mainly driven by performance growth, capital inflows, and policy support. Its financial condition is healthy and its product pipeline is rich, with long-term development potential. However, attention should be paid to the progress of the CSRC’s investigation, which will be one of the key factors affecting future stock price trends. Investors should comprehensively evaluate the company’s fundamentals and potential risks and make rational decisions.