Ligao Foods Co Ltd and the Food Sector Surge

On May 19, 2025, the food sector on the Shenzhen Stock Exchange experienced significant activity, with several companies witnessing notable gains. Among them, Ligao Foods Co Ltd, a prominent manufacturer of processed food products, was part of a broader trend of increased investor interest in the food industry.

Market Activity and Key Gainers

Throughout the morning session, food stocks demonstrated resilience and growth. Notably, companies such as Babi Foods, Lihao Foods, and Tianwei Foods saw substantial increases, with Babi Foods reaching a trading halt due to its significant rise. Other companies like Chengde Lulu and Guangzhou Jiajia also experienced gains exceeding 4%.

Regulatory Developments

This surge in the food sector coincides with the release of new regulatory measures aimed at promoting the restaurant and food industry. On May 16, 2025, the Ministry of Commerce and the National Development and Reform Commission jointly issued the “Measures for Promoting and Managing the Restaurant Industry,” set to take effect on June 15, 2025. The new regulations encompass 25 articles, significantly enhancing industry support through provisions that encourage international cooperation, digital development, standard revisions, and the cultivation of local specialty cuisines.

Impact on Ligao Foods Co Ltd

While Ligao Foods Co Ltd was not specifically mentioned in the surge, the company’s position on the Shenzhen Stock Exchange and its reputation for high-quality, innovative food products position it well to benefit from the positive market sentiment and regulatory support. As of May 15, 2025, Ligao Foods had a closing price of 49.93 CNY, with a 52-week high of 50.2 CNY and a low of 22.28 CNY. The company’s market capitalization stood at approximately 7.59 billion CNY, with a price-to-earnings ratio of 62.2188.

The regulatory changes and the overall positive trend in the food sector suggest a favorable environment for Ligao Foods Co Ltd and its peers, potentially leading to further growth and innovation in the industry.