Analysis of Huisheng Biology (300871)’s Strong Performance: Stock Price Surge Driven by Over 12x YoY Earnings Growth

This analysis is based on public information disclosed on Eastmoney.com [1][2]. Huisheng Biology performed strongly on January 21, 2026, entering the Strong Stock Pool. As of the close, the company’s stock price closed at RMB 31.49, with a single-day increase of 11.83%, a trading volume of RMB 1.169 billion, hitting a new high since May 23, 2025, and a turnover rate of 18.95%.

On January 9, 2026, the company released its 2025 annual performance forecast, achieving a significant turnaround from loss to profit [1]:

Indicator	Value	YoY Growth Rate
Net Income Attributable to Shareholders	RMB 235 million to RMB 271 million	+1265.93% to +1444.54%
Net Income Excluding Non-Recurring Items	RMB 212.5 million to RMB 248.5 million	+1408.61% to +1630.30%

The company has shown a strong recovery momentum for four consecutive quarters: net income in Q1 2025 was RMB 44.5 million (YoY growth of 371.23%), H1 net income was RMB 117.2 million (YoY growth of 325.88%), and Q3 net income was RMB 187.9 million (YoY growth of 494.28%), with annual performance showing an accelerating growth trend [1].

The company added the “Synthetic Biology” concept (on February 28, 2025) [1], which aligns with current capital market hotspots. In addition, the company is also involved in themes such as “Pet Economy” and “Pork Concept”, and the combination of multiple concepts has boosted market attention.

From the analysis of technical indicators, today’s stock price performance shows a typical pattern of rising price with increasing volume [0]:

• Price-Volume Relationship
  : Rising price with increasing volume, volume ratio of 1.56, indicating active entry of off-market funds to accumulate shares
• Turnover Rate
  : 18.95% is a high turnover rate, indicating active share turnover
• Amplitude
  : 12.25% shows sharp intraday fluctuations, with obvious long-short battle
• Closing Position
  : The closing price of RMB 31.49 is close to the intraday high of RMB 31.87, with bulls dominating
• Opening Performance
  : Today’s gap-up opening at RMB 28.42 established a strong tone from the start

Type	Price	Significance
Today’s Closing Price	RMB 31.49	Long-short dividing line
Intraday High	RMB 31.87	Short-term Resistance Level
Today’s Opening Price	RMB 28.42	Key Support Level
Previous Close	RMB 28.16	Key Support Level

Among the 45 listed companies in the pesticide and veterinary medicine sector, Huisheng Biology ranks in the upper-mid tier in terms of total market capitalization and net income [2], indicating a certain industry status and competitive strength.

As a key national leading enterprise in agricultural industrialization, Huisheng Biology has multiple core competitive advantages [2]:

1. Prestigious Industry Status
   : Winner of the National May 1st Labor Award (2024), a “Little Giant” enterprise specializing in sophisticated, unique, and new technologies in Hubei Province
2. Strong R&D Capability
   : The supporting unit of Hubei Provincial Veterinary Medicine Engineering Technology Research Center, co-established the “Huisheng Research Institute” with Huazhong Agricultural University, and launched the “Five-Year RMB 100 Million Cooperation Plan”
3. Rich Product Portfolio
   : Has core products such as Zhisoujing (Second Prize of Hubei Provincial Technological Invention), Weimian (Major Project of Hubei Provincial Technological Innovation Special Fund), and the Wantefeiling series (Wuhan Municipal Science and Technology Progress Award)
4. International Layout
   : Products cover the national market and international markets such as Southeast Asia, Europe, and South America [2]

Indicator	Value	Industry Positioning
Dynamic P/E Ratio	25.43x	Reasonable Range
P/B Ratio	3.02x	Moderate
Net Profit Margin Ranking	8/45	High Profitability
ROE Ranking	7/45	High Shareholder Return

From a valuation perspective, the dynamic P/E ratio of 25.43x has a good margin of safety compared to the company’s earnings growth rate (about 12x growth), and the P/B ratio of 3.02x is at a moderate level in the industry [0].

1. Risk of Excessive Short-Term Gains
   : Today’s increase exceeds 11%, and there may be pressure for a pullback due to profit-taking in the short term. A high turnover rate (19%) is often accompanied by quick liquidation of short-term funds [0].

2. Earnings Sustainability to Be Verified
   : The company was still in a loss state in 2024 (net income attributable to shareholders was -RMB 20.16 million) [1], so it is necessary to continue to monitor whether the high growth trend can be maintained in Q1 2026.

3. Share Pledge to Be Monitored
   : On January 14, 2026, the controlling shareholder pledged 1.1 million shares [1]. Although the pledge ratio is not high, it is necessary to continue to monitor subsequent developments.

4. Dilution Pressure from Private Placement
   : The company plans to conduct a private placement of no more than 27.2 million shares to raise RMB 250 million at an issue price of RMB 9.19, which may exert certain dilution pressure on the stock price [1].

5. Cyclical Fluctuation Risk
   : The veterinary medicine sector is a cyclical industry, and fluctuations in the prosperity of the aquaculture industry may directly affect the company’s performance.

1. Sustainable High Earnings Growth
   : If the company can maintain its current growth momentum, coupled with new concepts such as “Synthetic Biology”, it is expected to embark on a volatile upward trend [1].

2. Increasing Industry Concentration
   : As an industry leader, the company is expected to benefit from the integration trend of the veterinary medicine industry and further expand its market share.

3. Valuation Repair Space
   : Compared with the earnings growth rate, the current dynamic P/E ratio of 25.43x still has certain room for valuation repair.

Dimension	Assessment	Explanation
Fundamentals	⭐⭐⭐⭐	Significant improvement in performance, leading profitability in the industry
Technical Aspects	⭐⭐⭐	Good price-volume coordination, but excessive short-term gains
Catalysts	⭐⭐⭐⭐	Earnings exceeded expectations, supported by thematic concepts
Risks	⭐⭐⭐	Need to be alert to pullback pressure and earnings sustainability

: Considering the excessive short-term gain today (over 11%), aggressive investors can participate with a small position, while conservative investors are advised to wait for a pullback to around the 5-day moving average (about RMB 29-30) before considering positioning [0].

: If the company can maintain its current growth momentum, coupled with the popularity of new concepts such as “Synthetic Biology”, it is expected to embark on a volatile upward trend. Key points to focus on in the future: 1) Whether the Q1 earnings report can maintain high growth; 2) Whether trading volume can remain at a high level; 3) The rotation trend of the sector.

1. Changes in Trading Volume
   : If trading volume shrinks rapidly in the future, the strong market may end
2. Earnings Realization
   : The Q1 earnings report will be a key window to verify earnings sustainability
3. Capital Flow
   : Monitor the net inflow/outflow of main funds
4. Sector Linkage
   : Monitor the overall performance of the pharmaceutical/aquaculture sectors

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Huisheng Biology’s strong performance today is mainly driven by the positive stimulus of over 12x YoY earnings growth in 2025, coupled with a 7-month high in trading volume, good price-volume coordination, and the overall strength of the healthcare sector. The company’s fundamentals have indeed improved significantly, with leading profitability in the industry and a reasonable dynamic valuation. However, investors should be aware of the pullback risk brought by excessive short-term gains. Short-term operations should be cautious, while mid-to-long-term investors can wait for a pullback before seizing opportunities to position.