Hainan Ruizhi (002596) Consecutive Limit-Up Analysis: Benefits from Hainan Free Trade Port Closure Policy and Sector Linkage Effects

Hainan Ruizhi (002596) is a leading local building materials enterprise in Hainan with a market share exceeding 40%[0]. Its main business covers three segments: commercial concrete, landscaping, and municipal sanitation, which are highly aligned with the key development directions of Hainan Free Trade Port. The company hit consecutive limit-ups on November 25-26, 2025. On November 26, its closing price was 5.92 yuan, with an increase of 10.04%, and the closing order capital reached 105 million yuan[0]. The main driving factors for the limit-ups include:

1. Favorable Free Trade Port Policies
   : Hainan Free Trade Port will officially start closure operations on December 18, 2025. The policy system is centered on “zero tariffs, low tax rates, and simplified tax system”[0], which will drive the growth of infrastructure construction demand and directly benefit the company’s main business.
2. Industry Policy Support
   : The cement and building materials industry has recently received policy support, with stock price fluctuations in peer enterprises such as Huaxin Cement, and the industry as a whole has benefited[0].
3. Sector Linkage Effect
   : The Hainan sector is active overall, with concept stocks like Hainan Haiyao rising synchronously[0], forming a strong sector effect.
4. Business Expansion and Governance Optimization
   : The company continues to promote business expansion and internal governance optimization, enhancing market confidence[3].

1. Strong Correlation Between Policy and Business
   : All three main businesses of the company directly benefit from the infrastructure investment, ecological environmental protection, and urban beautification demands brought by the Free Trade Port construction, with high policy dividend conversion efficiency[0][5].
2. Sector Synergy Effect
   : The collective rise of Hainan concept stocks reflects the market’s consistent expectation for Free Trade Port policies, and capital flow has obvious sector agglomeration characteristics[4][6].
3. Balance Between Short-Term Sentiment and Long-Term Value
   : Consecutive limit-ups indicate positive short-term market sentiment, but attention should be paid to the actual performance release after policy implementation[7][8].

• Continuous Policy Benefits
  : After the Free Trade Port closure, infrastructure construction projects are expected to accelerate implementation, driving the growth of building materials demand[0][5].
• Business Expansion Space
  : The company can rely on local advantages to further expand landscaping and municipal sanitation businesses and increase market share[3].

• Policy Execution Pace
  : There may be uncertainty in the implementation progress of Free Trade Port policies, affecting short-term performance expectations[7].
• Increased Industry Competition
  : With the advancement of Free Trade Port construction, more out-of-province building materials enterprises may enter the Hainan market, intensifying competition[0].
• Raw Material Price Fluctuations
  : Fluctuations in raw material prices such as cement and sand may affect the company’s gross profit margin[0].

The consecutive limit-ups of Hainan Ruizhi (002596) reflect the market’s positive expectation for Hainan Free Trade Port policies and the high alignment of the company’s business with policy directions. As a local building materials leader, the company is expected to gain first-mover advantages in Free Trade Port construction, but attention should be paid to risks such as policy execution pace, industry competition, and raw material prices. Investors should rationally view short-term market sentiment and long-term value based on their own risk tolerance and long-term investment goals.