Analysis of the Strong Performance of Kangzhi Pharmaceutical (300086)

Kangzhi Pharmaceutical (300086) entered the strong stock pool today, and its strong performance is driven by multiple factors including policy dividends, fundamental improvement, and capital resonance.

As a leading children’s medicine enterprise, Kangzhi Pharmaceutical directly benefits from policy dividends against the backdrop of the countdown to Hainan Free Trade Port’s closure. The ‘zero tariff’ policy on pharmaceuticals significantly reduces the company’s raw material costs and improves profitability; meanwhile, the Lecheng Pilot Zone policy provides strong support for the company’s new drug clinical trials and accelerates the R&D process [0]. These policy advantages provide solid support for the company’s competitive position in the children’s medicine segment.

The company’s main business revenue from children’s medicine reached 739 million yuan, with obvious advantages in the children’s medicine segment market. Data from Q3 2025 shows a significant increase in institutional holdings, with multiple funds holding heavy positions, reflecting professional investors’ recognition of the company’s fundamentals [0]. The pharmaceutical sector to which it belongs performed well overall in 2025, and the children’s medicine industry received policy support, providing a favorable industry environment for the company’s development.

The stock price showed a strong breakthrough pattern technically, successfully breaking through the previous consolidation range (7.4-9.6 yuan) [0]. On November 14, it closed at 10.62 yuan with a daily limit, hitting a 52-week high, and the market value reached 4.833 billion yuan. Over the past 20 trading days, it rose from 7.85 yuan to 10.62 yuan, with a cumulative increase of more than 35%, showing strong upward momentum.

Capital flow data shows that main funds actively intervened: on November 14, 124.88 million shares were traded, with a turnover of 1.242 billion yuan and a turnover rate as high as 28.34% [0]. Institutions net bought 91.854 million yuan, and the net inflow of main funds ranked among the top 5 in terms of proportion to market value, indicating extremely high market attention to this stock [0].

The strong performance of Kangzhi Pharmaceutical reflects the market’s high expectations for the policy dividends of Hainan Free Trade Port and optimism about the prospects of the children’s medicine segment. As a direct beneficiary of the policy, the company has gained significant advantages in both cost and R&D. The high turnover rate and active institutional intervention indicate that market funds are optimistic about its sustainability, but attention should also be paid to the risk of profit-taking in the short term.

• The policy dividends of Hainan Free Trade Port continue to be released, and the company has a first-mover advantage as a direct beneficiary
• The policy support for the children’s medicine industry is increasing, and the segment market has broad growth space
• The increase in institutional holdings shows recognition from professional investors, which is conducive to stock price stability

• The short-term increase is large, and the high turnover rate of 28.34% may bring profit-taking pressure
• It takes time for policy dividends to be realized, and short-term performance improvement may lag behind stock price performance
• The overall valuation level of the pharmaceutical industry is relatively high, so attention should be paid to the risk of sector rotation

The strong performance of Kangzhi Pharmaceutical (300086) is based on a combination of policy dividends, fundamental improvement, and capital promotion. As a leading children’s medicine company, it has gained dual advantages in cost and R&D under the background of Hainan Free Trade Port policy. Technically, it successfully broke through important resistance levels, and active institutional intervention provides support for the stock price. Investors should pay attention to the progress of policy implementation and the company’s performance realization, while noting the volatility risk brought by the large short-term increase.