The two major "Shaogu" companies deliver impressive performance! Unveiling the logic behind their countercyclical growth

In the recent period, major A-share market indexes have repeatedly been choppy and adjusted, but some individual stocks have still entered an “earnings surge” trading scenario. Judging by the Shaoxing concept/sector, the past week has also shown corresponding performance, including Hui Jishan, whose revenue scale hit a record high, and Anhui Kang, whose annual results forecast was impressive, and which recently released a follow-on offering announcement.

On April 1, Hui Jishan, one of China’s leading yellow wine companies, surged to a strong daily limit. Previously, the company had just turned in an outstanding set of results: the annual report shows that in 2025, Hui Jishan achieved operating revenue of 1.987 billion yuan, up 18.32% year over year; attributable net profit of 215 million yuan, up 12.65% year over year. Revenue scale reached the highest level since listing, and it was also the company’s third consecutive year of achieving double-digit growth in both revenue and profit. Against the backdrop of overall contraction in the liquor market, the core driving force behind the growth in performance comes from the two strategies of “premiumization” and “youthfulness” that the company has clearly advanced in recent years. In the reporting period, not only did Hui Jishan’s 1743 sales amount reach yet another new high, but its premium core brand Lan Ting and its youthfulness core brand Shuang Jiu both achieved breakthroughs with leap-like progress. In particular, to meet young people’s diverse drinking needs such as “enjoy-your-own-me” micro-sips (“enjoying yourself micro-mellow”), and “punk health preservation” (“punk health preservation”), Hui Jishan launched the Shuang Jiu series in July 2023. It created a new category of sparkling yellow wine. By 2025, sales of the Shuang Jiu series exceeded 100 million yuan, demonstrating a sustainable path toward the youthfulness of yellow wine.

From the secondary market’s performance, Hui Jishan’s share price has risen in a period of volatility since late March. From the lowest intraday price on March 23 to the highest intraday price on April 3, over 10 trading days the stock price increase has exceeded 21%.

Anhuil Kang’s performance, which has also rebounded alongside the pharmaceutical sector, is equally striking. The annual results forecast it had previously released indicates that it expects full-year net profit attributable to shareholders of listed companies of 110 million to 138 million yuan, representing year-over-year growth of 36.93% to 71.78%; non-recurring and non-attributable net profit is expected to be 71 million to 99 million yuan, representing year-over-year growth of 46.68% to 104.52%.

Regarding the reasons behind the earnings growth, relevant executives at Anhui Kang stated that although products such as cephalosporin raw materials and ketone-acid raw materials were affected by factors including weak market demand and falling prices, leading to a year-over-year decline in sales, the company’s preparations business is based on new product launches and selection in centralized procurement, enabling rapid growth in sales. Overall, the company’s main business has remained relatively stable.

In addition, Anhui Kang has also actively laid out its innovative drug segment. In late March, the company revised its follow-on offering plan, proposing to raise 1.12 billion yuan for “innovative drug R&D projects,” focusing on advancing the clinical trial of a particular medicine. The raw material drug projects also being steadily advanced—an annual production of 8,000 tons of amoxicillin and 2,000 tons of ampicillin raw materials, with total investment of 389 million yuan—are expected to strengthen the company’s integrated capabilities across the anti-infection industry chain.

From the secondary market’s performance, although Anhui Kang saw a sharp pullback in its share price on April 3, from the lowest intraday price on March 23 to the highest intraday price on April 3, among the 10 trading days the stock price increase reached 29.88%.

“April is a key window period for the disclosure of annual reports and quarterly reports. Performance becomes the core factor driving the ups and downs of the stock price. Investors should focus on the authenticity of performance, the sustainability of growth, and the reasonableness of valuation, avoid blindly chasing after big gains, and, through in-depth research into a company’s fundamentals, choose high-quality targets.” Industry insiders remind that companies with solid performance and clear growth prospects are more likely to attract capital’s favor. For investors as well, it’s important to avoid certain stocks where performance falls short of expectations or lacks a growth logic.

(Source content: Shaoxing Evening News)

[Source: Shaoxing Net_News]