Nanjiao Food (605339) Limit-up Analysis: Market Volatility Amid Earnings Pressure

Nanjiao Food (605339) hit the limit-up on November 21, 2025, with a closing price of 20.96 yuan. The institutional net purchase amount on that day reached 189 million yuan, accounting for 2.12% of the circulating market value [0]. As the “first stock of Chinese baking oil”, the company mainly engages in baking oil, whipped cream, fillings and other products [3].

The company’s net profit attributable to parent company shareholders in October 2025 was 1.7053 million yuan, a year-on-year decrease of 82.28% [2]. In the first quarter of 2025, the net profit attributable to the parent company fell 62.21% year-on-year [3], mainly affected by global commodity price fluctuations, with core raw material prices such as palm oil and coconut oil continuing to rise [3].

Despite the decline in performance, Nanjiao Food’s stock price has outperformed the market since 2025, with a 1-year rise and fall of 19.77% [1]. The current stock price is 20.96 yuan, which is at a relatively high position in the 52-week price range of 15.02-22.28 yuan [1]. The company’s price-earnings ratio is 95.22 times, significantly higher than the industry average and peers [0].

The institutional net purchase of 189 million yuan indicates increased short-term market attention [0], but attention should be paid to the risk of continued rising raw material costs and the correction pressure brought by high valuation [3].

Nanjiao Food’s recent limit-up may be driven by short-term funds, but its fundamentals still face significant pressure. Investors need to comprehensively consider the expectations of performance improvement and valuation levels.