Analysis of Chengda Pharmaceutical's Strong Performance: Technical and Fundamental Support

Chengda Pharmaceutical (301201) showed strong performance on November 14, 2025, with its stock price hitting a 20% daily limit, a turnover rate as high as 21.73%, and institutional net inflow of 73.636 million yuan [1]. The stock broke its annual high within a week and became a market-focused hot stock [2]. This strong performance is supported by multiple factors.

From the sector background, Chengda Pharmaceutical belongs to the CRO/CDMO pharmaceutical outsourcing sector, which performed actively overall in 2025 [3]. The pharmaceutical commercial sector has risen against the trend recently, showing characteristics of a catch-up rally [3]. As a high-tech enterprise focusing on R&D and production of pharmaceutical intermediates and chemical APIs, Chengda Pharmaceutical provides key pharmaceutical intermediate services to multinational pharmaceutical and medical R&D institutions, occupying an important position in the industrial chain [4].

Technical analysis shows that the stock’s cumulative closing price increase deviation exceeded 30% in two consecutive trading days (November 13-14), triggering an abnormal fluctuation announcement [5]. This continuous sharp rise indicates strong market capital pursuit of the stock. At the same time, the stock broke its annual high, technically opening up upward space [2].

: On November 14, Chengda Pharmaceutical ranked among the top in institutional net purchases, with a net inflow of 73.636 million yuan [1]. The concentrated inflow of institutional capital is the core driving force behind the stock’s strength, reflecting professional investors’ optimism about the company’s prospects.

: The pharmaceutical CRO sector was volatile but active overall in 2025 [3]. As an important participant in the sector, Chengda Pharmaceutical benefits from the improvement of industry prosperity. The company is located in Zhejiang, belonging to the Zhejiang sector [6], where the pharmaceutical industry cluster effect is obvious.

: Chengda Pharmaceutical mainly engages in R&D, production and sales of pharmaceutical intermediates, chemical APIs, food and feed additives [4]. Its product line is rich, with high technical barriers. The company’s professional positioning in the CRO/CDMO field gives it strong profitability and growth.

:

• The long-term growth trend of the pharmaceutical CRO industry is clear, and the company as a professional service provider is expected to continue to benefit
• After breaking the annual high technically, the upper locked-up shares decrease, which is conducive to further upward movement of the stock price
• The large inflow of institutional capital provides liquidity support for the stock price

:

• The short-term increase is too large, with cumulative increase deviation exceeding 30% in two consecutive days [5], there is a risk of technical correction
• The turnover rate of 21.73% is relatively high [1], indicating loose chips and possible intensified short-term fluctuations
• The pharmaceutical sector is volatile overall [3], and changes in industry policies may affect the company’s performance

Chengda Pharmaceutical’s strong performance is the result of multiple factors. The concentrated inflow of institutional capital [1], the active performance of the pharmaceutical CRO sector [3], and the company’s solid fundamentals [4] constitute the core elements supporting the stock price. Technically breaking the annual high [2] opens up space for subsequent increases.

From the perspective of sustainability, although there is a risk of correction in the short term, considering the deep participation of institutional capital and the support of industry fundamentals, the medium-term trend of the stock is still worthy of close attention. Investors should focus on the company’s subsequent performance, changes in industry policies, and changes in the flow of institutional capital.