Analysis of Strong Performance of Anji Food (603696): Policy Catalysts and Risk Assessment

Anji Food (603696) recent strong performance’s core catalyst is the 12 preferential policies for Taiwan issued by the Fujian Provincial Government on December 2, 2025, which support Taiwan compatriots to open Shaxian Snack stores and promote Fujian-Taiwan integration [1][2][3]. As a local condiment enterprise in Fujian, the market regards it as a potential beneficiary of the policy. After the policy release, the stock price rose by the daily limit for three consecutive trading days, with a cumulative increase of over 20% [4].

In terms of price and trading volume: Over the past 10 trading days (November 21 to December 4, 2025), the stock rose from 11.52 yuan to 17.70 yuan, an increase of 53.65% [0]. Trading volume increased significantly: after the policy release (December 2-4), the average daily trading volume was about 450,300 lots, which is 2.92 times the 153,900 lots before the policy release (November 21-27), indicating active participation of short-term funds in speculation [0].

Technical analysis shows that the stock had a buy signal on November 27 and is in an upward trend, but both KDJ and RSI indicators show overbought risks [0]. The current price of 17.70 yuan has reached the short-term resistance level; the technical support level is 13.47 yuan (20-day moving average), and the next target level is 18.56 yuan [0].

Fundamentally: The company’s static P/E ratio is 94.04 times, far higher than the industry average of 30.74 times [4]. As of 2025, the company’s revenue increased by 3.00% year-on-year, and net profit increased by 8.95% year-on-year, with moderate performance growth [0].

1. Policy-driven concept speculation
   : The recent rise of the stock is mainly due to policy expectations, not significant improvements in fundamentals. The market links Anji Food to the Shaxian Snack expansion policy, but the extent of the company’s direct business benefits has not been clarified.
2. Short-term funds dominate
   : The significant increase in trading volume indicates that short-term speculative funds are the main force driving the stock price up, rather than long-term value investors.
3. Valuation bubble risk
   : P/E and P/B ratios are significantly higher than the industry average, deviating from the company’s fundamental support.

1. Overvaluation risk
   : The P/E ratio is more than three times the industry average, with a risk of bubble formation [0][4].
2. Overbought correction risk
   : Technical indicators show overbought conditions, and the stock price may adjust at any time.
3. Limited actual impact of policy
   : The direct correlation between the company’s business and Shaxian Snack needs to be verified, and there is uncertainty about policy benefits.
4. Historical regulatory risk
   : The company was once warned by regulators for irregularities in accounting and use of raised funds [5].

If the policy can substantially promote the expansion of Shaxian Snack stores, Anji Food, as a local condiment enterprise in Fujian, may gain business growth. However, this expectation has not yet translated into actual performance.

Anji Food (603696) recent strong performance is mainly driven by policy concepts, with high participation of short-term funds. Although technically in an upward trend, overbought and high valuation risks are worth noting. Investors should combine their own risk preferences and investment horizons, and make decisions based on the company’s fundamentals and the actual impact of the policy. This report does not constitute investment advice.