Yuekang Pharmaceutical (688658) Strong Performance Analysis Report

Yuekang Pharmaceutical (688658)’s strong rise is mainly driven by two company-specific events:

1. AI Innovative Drug Clinical Breakthrough
   : On December 9, the YKYY018 nebulized inhalant (for RSV infection treatment) developed by subsidiary Yuekang Kechuang initiated Phase I clinical trials, filling the global treatment gap and highlighting AI drug R&D capabilities [1].
2. Hong Kong Listing Plan
   : On December 5, the company announced its plan to issue H-shares and list on the Hong Kong Stock Exchange, aiming to enhance international brand image and diversify financing channels, boosting market confidence [5].

• Price and Trading Volume
  : Closed up 10.54% to 26.84 yuan on the day, hitting a 60-day high [2]; trading volume was 19.72M, 2.59 times the average daily volume of 7.62M [0], showing a significant increase in trading activity.
• Capital Flow
  : Main funds had a net inflow of 83.9279 million yuan, accounting for 15.91% of total turnover, with institutional funds actively participating [2][4].
• Technical Indicators
  : MACD showed a golden cross (bullish signal), KDJ indicator was in a bullish zone; however, RSI indicated overbought risk, and there may be a short-term correction [0].
• Support and Resistance
  : Recent support level at 23.69 yuan, resistance level at 27.62 yuan [0].

• Financial Performance
  : In the first three quarters of 2025, revenue decreased by 41.20% YoY, net profit attributable to parent company was a loss of 148 million yuan, net profit margin was -9.22%, ROE was -6.68%, with significant performance pressure [3][0].
• R&D Investment
  : R&D investment accounted for 11.16% of revenue in 2024, continuing to increase innovation efforts [3].
• Market Sentiment
  : The stock belongs to popular concept sectors such as innovative drugs, traditional Chinese medicine, and artificial intelligence, with obvious synergistic effects [2]; in the past 90 days, 2 institutions have given buy ratings with a target average price of 25.35 yuan [2]; the healthcare sector rose 0.48% on the day, providing certain support [0].

1. Concept Superimposition and Event Resonance
   : The concept combination of innovative drugs + AI + traditional Chinese medicine attracts market attention, and together with the two catalysts of clinical progress and listing plan, forms an upward force.
2. Obvious Capital-Driven Characteristics
   : The 2.59-fold increase in trading volume and large net inflow of main funds on the day reflect the market’s rapid response to positive news, but short-term capital speculation risks need to be vigilant.
3. Long-Term Significance of Internationalization Strategy
   : The Hong Kong listing plan not only broadens financing channels but also helps enhance the company’s international brand influence, laying a foundation for long-term development, but short-term performance pressure still needs to be improved.

• Financial Risk
  : Sustained decline in performance, negative net profit margin and ROE, insufficient fundamental support [3][0].
• Valuation Risk
  : Current P/E is -50.99x, P/B is 3.48x, valuation is high; if subsequent catalysts fail to be continuously realized, the stock price may correct [0].
• Technical Risk
  : RSI is overbought, facing short-term correction pressure [0].

• Prospects of AI Innovative Drug Track
  : The YKYY018 project is a global first; if clinical progress is smooth, it is expected to become a new performance growth point for the company [1].
• Improvements from Hong Kong Listing
  : International layout enhances brand and financing capabilities, which is long-term beneficial to the company’s development [5].

Yuekang Pharmaceutical’s strong performance is driven by both event catalysis and capital promotion. The short-term technical side shows strength, but overbought correction risks need to be noted. Fundamentally, there is performance pressure, but R&D investment and internationalization strategy provide potential momentum for long-term development. Investors should follow subsequent AI innovative drug clinical progress, Hong Kong listing process, and changes in capital flow, and rationally evaluate risks and opportunities.