Analysis of Zhongshui Fishery (000798) Continuous Limit-Up: Driven by Earnings Growth and State-Owned Enterprise Reform

This analysis is based on Tushare’s limit-up pool data [0] and a StockStar report dated November 21, 2025 [1]. After 5 consecutive limit-ups from November 17 to 21, Zhongshui Fishery (000798) continued to rise by the daily limit on the 21st, achieving 6 consecutive limit-ups with a cumulative increase of 61.05% [0]. Key driving factors include unexpected earnings growth, state-owned enterprise reform concept, recovery of the aquatic products industry, and defensive attributes in a weak market.

The strong performance of Zhongshui Fishery is the result of multiple factors resonating:

1. Earnings Fundamentals
   : In the first three quarters of 2025, the net profit attributable to the parent company increased by 230.08% year-on-year, and the non-recurring net profit increased by 382.69%. At the same time, it received a government subsidy of 269 million yuan, and operating cash flow turned from negative to positive, significantly improving its financial condition [0].
2. Industry Recovery
   : The aquatic products industry is recovering, with prices of major aquatic products rising to historical highs, and improved aquaculture technology driving production growth [0].
3. Policy and Market Environment
   : Supported by the state-owned enterprise reform concept, and in a weak market (the three major indices corrected collectively [3]), the agricultural and fishery sector was given defensive attributes and became a target of capital clustering [1][2].
4. Capital Dynamics
   : Institutional funds are divided; some institutions sold while others still bought, indicating that the market has different judgments on its subsequent trend [0].

Cross-domain correlations show that when the overall market is sluggish, individual stocks in defensive sectors with both strong fundamentals (earnings growth) and policy concepts (state-owned enterprise reform) are more likely to be favored by capital. The consecutive limit-ups of Zhongshui Fishery not only reflect its own improvement but also reflect the current market capital’s preference for certain opportunities [2][3].

• Short-term consecutive limit-ups may lead to overvaluation and correction pressure [0];
• Institutional fund divergence may intensify stock price volatility [0];
• If the overall market weakness persists, it may drag down individual stock performance [3].

• If the aquatic products industry recovery continues, the company’s performance is expected to further improve [0];
• The implementation of state-owned enterprise reform policies may bring additional dividends [1].

It should be noted that in the current market environment, the short-term performance of this stock is highly time-sensitive.

The recent strong performance of Zhongshui Fishery (000798) stems from multiple positive factors in earnings, policies, industry, and market environment. Despite short-term volatility risks, its improved fundamentals and defensive attributes make it somewhat attractive in the current market. Investors should make decisions based on their own risk tolerance and market dynamics.