Shuhua Sports (605299) Limit-Up Reason and Market Impact Analysis

Shuhua Sports (605299)’s limit-up on December 5, 2025 was corely driven by

. Recently, Fujian launched 12 Taiwan-friendly policy measures and released the 15th Five-Year Plan proposal, emphasizing the strengthening of transportation and logistics infrastructure construction and cross-strait integration development to promote the West Coast Economic Zone of the Taiwan Strait. These policy tailwinds have led to a collective surge in Fujian local stocks, and Shuhua Sports, as a Fujian-based enterprise, was directly driven by the sector sentiment [1][2][3][4].

From the perspective of price and trading volume: Shuhua Sports limit-up consecutively on December 4 and 5, 2025, closing at $12.95 on December 5, hitting a 52-week high [0]. Trading volume increased significantly: 45.35 million shares on December 4 and 45.08 million shares on December 5, far higher than the average volume of 8.47 million shares [0].

Current market sentiment is dominated by

. The Fujian local stock sector remains active due to policy tailwinds; the performance of leading stocks such as Haixin Food (8 days with 7 limit-ups) and Anji Food (4 consecutive limit-ups) has driven the overall sector heat. Shuhua Sports’ limit-up mainly benefited from sector sentiment rather than changes in the company’s own fundamentals [1][2][3][4]. Attention should be paid to its valuation risk: the current price-to-earnings ratio (P/E) is 70.32x and price-to-book ratio (P/B) is 4.30x, far higher than the industry average [0].

:

1. Overvaluation risk: The current P/E ratio is far higher than the industry average, with potential valuation correction pressure [0].
2. Insufficient fundamental support: Return on equity (ROE) is only 5.99% and net profit margin is 4.95%, indicating average profitability [0].
3. Policy-driven volatility: The stock price rise mainly relies on sector sentiment brought by policy tailwinds; if policy heat fades, a sharp correction may occur [1][2][3][4].

:
In the short term, sector sentiment remains active; if policy tailwinds continue to ferment, the stock price may still have upside potential [1][2][3][4].

Shuhua Sports’ limit-up was driven by policy tailwinds for Fujian local stocks. Short-term market sentiment is active, but fundamental support is insufficient and valuation is high. Attention should be paid to changes in sector sentiment, follow-up implementation of policies, and changes in trading volume. Investors should make cautious decisions based on their own risk preferences.

• Resistance level: $12.95 (current 52-week high, no obvious resistance yet) [0]
• Support level: $10.17 (lowest point on December 1, recent key support) [0]