Analysis of Strong Performance of Namchow Foods (605339): Reasons for Limit-Up and Sustainability Assessment

Namchow Foods Group (Shanghai) Co., Ltd. (605339) focuses on the baking oil industry, with products covering more than 200 varieties in five series including baking application oils, fresh cream, and fillings, and is committed to becoming a leader in comprehensive industry solutions [1]. On November 21, 2025, the stock strongly hit the limit-up, closing at 20.96 yuan, with an increase of 10.03% and an amplitude of 11.44% [3][4]. Dragon and Tiger List data shows that Guotai Haitong Securities Sanya Yingbin Road Branch net bought 113 million yuan, Shanghai Stock Connect net bought 2.2772 million yuan, with obvious capital inflow [3][4][5]. From the fundamental perspective, the company achieved operating revenue of 2.268 billion yuan (YoY -1.60%) and net profit attributable to parent company of 28.8213 million yuan (YoY -80.82%) from January to September 2025, with short-term performance under pressure [0]. However, there are expectations of performance improvement in the market, coupled with the rotation effect of the food and beverage sector, driving the stock price up [0].

1. Obvious Capital Driven
   : Dragon and Tiger List shows simultaneous inflow of institutional and northbound funds, reflecting increased short-term market attention [3][4].
2. Fundamental and Sentiment Differentiation
   : The current performance decline and strong stock price form a contrast, which may be supported by the market’s expectation of future performance repair [0].
3. Impact of Sector Rotation
   : The food and beverage sector has been active in rotation recently, driving the performance of individual stocks in sub-sectors [0].

• Risks
  : Short-term performance failing to meet expectations may trigger a correction; profit-taking after the limit-up may increase volatility [0].
• Opportunities
  : If the subsequent expectations of performance improvement are fulfilled, the upward trend may continue; industry demand recovery is expected to bring long-term support [1].

Namchow Foods has recently shown strong performance due to capital inflow, sector rotation, and expectations of performance improvement, but attention should be paid to the progress of fundamental repair and changes in market sentiment. Investors should rationally view short-term fluctuations in combination with their own risk preferences [0].