Analysis of the Limit-Up Reason for Namchow Food (605339) and Prediction of Market Sentiment and Trend

Namchow Food (605339) hit the limit up on November 21, 2025, with an increase of 10.03% to 20.96 yuan [1], entering the limit-up pool [0]. The limit-up reasons can be summarized into three aspects:

1. Technical Driver
   : Technical analysis shows a strong buy signal; RSI(14) is 58.82 (neutral to strong range), and moving averages show a buy trend [0];
2. Increased Trading Activity
   : On the limit-up day, the turnover was 189 million yuan, accounting for 2.12% of the circulating market value; the trading volume was 8.15 million shares, far exceeding the 3-month average of 2.56 million shares [0];
3. Impact of Sector Rotation
   : The food and beverage sector it belongs to has seen a short-term rotation market driven by consumption recovery expectations [0].

The company’s main business is the R&D, production, and sales of baking oil-related products, covering baking application oils, whipped cream, fillings, etc. [0].

1. Divergence Between Stock Price and Performance
   : The stock price has risen 19.77% this year (52-week range: 15.02-22.28 yuan) [1], but fundamentals are under obvious pressure: 2025 Q1 net profit attributable to parent company decreased by 62.21% YoY, and October net profit decreased by 82.28% YoY [2];
2. Short-Term Sentiment Dominance
   : Strong technicals and active trading reflect positive short-term market sentiment, but profit decline (mainly due to rising raw material costs [2]) may limit long-term gains;
3. Leading Attribute with Taiwanese Investment Background
   : As a leading baking oil company with a Taiwanese investment background, it has certain influence in the industry, but cost control capabilities need to be improved [0].

:

• Sustained rise in raw material costs leading to further profit decline [2];
• Stock price rise lacks fundamental support, short-term correction risk exists [0];
• Securities Star data shows intensified competition in the baking oil industry, which may squeeze the company’s profit margin [3].

:

• If consumption recovery policies are implemented, the recovery in demand for the food and beverage sector may drive the company’s performance improvement [0];
• If strong technicals continue, there may still be short-term trading opportunities [0];
• If cost control measures (such as supply chain optimization) take effect, profits are expected to recover [0].

: Investors need to pay attention to the uncertainty brought by the divergence between stock price and performance, and focus on the company’s cost control and profit improvement [0].

Namchow Food (605339) limit-up event reflects positive short-term market sentiment, but fundamentals are under obvious pressure. Technicals show buy signals, trading activity has increased, but the sharp decline in net profit needs to be alerted. Investors should combine their own risk preferences, consider both technical and fundamental factors, and make rational decisions [0].