Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the market benchmark within the next six months [15]. Core Insights - The company achieved a record high in annual performance for 2024, with total revenue of 4.465 billion yuan, a year-on-year increase of 19.15%, and a net profit attributable to shareholders of 394 million yuan, up 68.89% [1][3]. - The company's core brands are experiencing significant growth, particularly in the domestic market, where revenue from pet food has surged by 92% year-on-year, contributing to a robust overall performance [2][3]. - The company has successfully met its employee stock ownership plan targets, with a notable increase in profit margins and a strong performance in both domestic and international markets [3]. Revenue Summary - In 2024, the company generated total revenue of 4.465 billion yuan, with snacks (including canned food) contributing 3.1 billion yuan (up 5%) and pet staple food generating 1.1 billion yuan (up 92%) [2]. - Domestic revenue reached 1.41 billion yuan, reflecting a 30% year-on-year growth, while international revenue was 3.05 billion yuan, up 15% [2]. Profitability Summary - The company achieved a gross margin of 28.2% in 2024, an increase of 1.9 percentage points year-on-year, with domestic gross margin at 35% and international gross margin at 25% [3]. - The net profit margin for Q4 2024 was 8.8%, up 3.3 percentage points year-on-year, while Q1 2025 saw a net profit margin of 8.3%, an increase of 1.9 percentage points [3]. Financial Forecast - The company is projected to achieve revenues of 5.198 billion yuan in 2025, 6.088 billion yuan in 2026, and 6.989 billion yuan in 2027, with year-on-year growth rates of 16.4%, 17.1%, and 14.8% respectively [3][5]. - Net profit forecasts for 2025, 2026, and 2027 are 455 million yuan, 542 million yuan, and 632 million yuan, with respective growth rates of 15.7%, 19.0%, and 16.6% [3][5].

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6][86]. Core Views - The company is a leading resin lens manufacturer with a strong focus on R&D and a robust supply chain, which enhances its competitive edge. The partnership with GoerTek in the XR field is expected to drive growth and open new market opportunities [5][15][75]. Summary by Sections Company Overview - The company specializes in the R&D, production, and sales of resin lenses, with plans to establish overseas production bases starting in 2024. It has a concentrated shareholding structure and announced an equity incentive plan in November 2024, with profit growth targets for 2025-2027 set at no less than 21%/17%/15% [3][20]. Financial Performance - In 2024, the company achieved revenue of 2.061 billion yuan, a year-on-year increase of 17.1%, and a net profit of 428 million yuan, up 31% year-on-year. The revenue growth from 2018 to 2024 has a CAGR of 15.8%, while net profit has a CAGR of 32.7% [3][24][25]. Business Structure and Supply Chain - The company has built a strong supply chain through high R&D investment and stable raw material sourcing, maintaining over 30% procurement from Mitsui Chemicals. The business structure has been optimized, with a growing proportion of customized lenses, which accounted for 19.2% of revenue in 2024, up 2.8 percentage points from 2018 [4][49][63]. XR Business Development - The establishment of an XR R&D center and collaboration with GoerTek are expected to enhance the company's capabilities in the XR market. The company has signed supply framework agreements with multinational consumer electronics firms, indicating a positive outlook for XR product growth [5][75][76]. Earnings Forecast and Investment Advice - The company is projected to achieve revenue growth rates of 15%/14%/12% and net profit growth rates of 23%/19%/15% from 2025 to 2027. The report suggests that the company's strong ODM operations and increasing share of customized and functional lenses will support a rise in profitability [6][78][86].

Core Insights - The report highlights a shift in the allocation of actively managed equity public funds, with a decrease in A-share holdings and an increase in Hong Kong stock holdings as of Q1 2025 [3][11] - There is a preference for increasing allocations in small and mid-cap stocks while reducing exposure to large-cap and dividend stocks [3][5] - The report indicates a focus on the automotive, non-bank financials, and non-ferrous metals sectors, while reducing allocations in power equipment, telecommunications, and household appliances [3][5][26] Fund Position Changes - As of Q1 2025, the stock position of actively managed equity public funds stands at 85.47%, reflecting a quarter-on-quarter increase of 0.36 percentage points [4][12] - The proportion of A-share holdings decreased by 2.29 percentage points, while the proportion of Hong Kong stocks increased by 2.66 percentage points [4][12] Sector Allocation - In terms of broad indices, there is an increased allocation to the CSI 500 and CSI 1000, with the CSI 500 holdings rising by 0.63 percentage points and the CSI 1000 by 1.00 percentage points [5][14] - The report notes a significant increase in Hong Kong stock holdings, with a rise of 4.67 percentage points, and a preference for the Sci-Tech Innovation Board, which saw a 1.09 percentage point increase in holdings [5][19] - The report indicates a slight increase in the allocation to cyclical stocks, while growth stocks saw a reduction of 3.44 percentage points [5][20] Industry Distribution - The report identifies a preference for increasing allocations in the automotive, non-ferrous metals, and non-bank financial sectors, while reducing exposure to power equipment, telecommunications, and household appliances [3][25][26] - The top five industries with increased allocation include automotive (+0.58 percentage points), non-ferrous metals (+0.39 percentage points), and non-bank financials (+0.36 percentage points) [26] - Conversely, the bottom five industries with reduced allocation include power equipment (-2.10 percentage points), telecommunications (-1.40 percentage points), and household appliances (-0.51 percentage points) [26] Stock Configuration - The concentration of the top 10 holdings (CR10) in actively managed equity public funds has increased by 0.81 percentage points, indicating a trend towards more concentrated fund flows [6][41] - The top 20 stocks with increased market value are primarily in the pharmaceutical and electronics sectors, while stocks like Ningde Times and Huadian shares have seen significant declines in market value [6][41]

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the market benchmark within the next six months [17]. Core Insights - The company achieved a total revenue of 5.245 billion yuan in 2024, representing a year-on-year growth of 21.22%, and a net profit of 625 million yuan, up 45.68% year-on-year [2][4]. - The company's proprietary brand business continues to perform strongly, with revenue from self-owned brands reaching 3.545 billion yuan in 2024, a 29.14% increase year-on-year [3]. - The gross profit margin for 2024 was 42.3%, an increase of 5.4 percentage points year-on-year, with a net profit margin of 12% [4][11]. Financial Performance Summary - In 2024, the company reported total revenue of 5.245 billion yuan, with a year-on-year growth rate of 21% [6]. - The net profit for 2024 was 625 million yuan, reflecting a growth rate of 46% [6]. - The earnings per share (EPS) for 2024 was 1.56 yuan, with a price-to-earnings (P/E) ratio of 63.2 [6][11]. - The company forecasts revenues of 6.377 billion yuan, 7.780 billion yuan, and 9.454 billion yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 745 million yuan, 955 million yuan, and 1.206 billion yuan [4][6]. Business Segment Analysis - The direct sales channel revenue increased significantly to 1.969 billion yuan in 2024, a 59% year-on-year growth, accounting for 56% of the self-owned brand revenue [3]. - The company launched a high-end dog food brand, filling a gap in the domestic market for ultra-premium pet food [3]. - The revenue from the company's snack, staple food, and health products in 2024 was 2.484 billion yuan, 2.690 billion yuan, and 46 million yuan respectively, with year-on-year growth rates of 15%, 29%, and a decline of 19% [3].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% within the next six months [5][17]. Core Insights - The company reported a revenue of 616 million yuan for Q1 2025, reflecting a year-on-year increase of 7.78%, and a net profit of 182 million yuan, up 8.13% year-on-year [2]. - The gross margin improved to 86.31%, an increase of 1.42 percentage points year-on-year, while the net profit margin reached 56.12%, up 0.4 percentage points [2]. - The company is expanding its core product offerings and enhancing its market position in the children's health sector, particularly with its flagship product, the Vitamin AD drops [4]. Financial Performance - The company’s operating expenses for Q1 2025 were optimized, with sales, management, and R&D expense ratios at 15.77%, 2.75%, and 2.35% respectively, showing year-on-year changes of +0.2, -1.02, and +0.15 percentage points [3]. - The financial forecast estimates revenues of 2.37 billion yuan, 2.64 billion yuan, and 2.94 billion yuan for 2025, 2026, and 2027 respectively, with growth rates of 11% for both 2025 and 2026, and 12% for 2027 [5][7]. Product Development and Market Strategy - The company is focusing on expanding its product matrix to meet diverse health needs for children, including new product lines targeting skin health [4]. - Strategic partnerships, such as the collaboration with Duomeikang Bio, are aimed at exploring new opportunities in children's skin health [4]. - The company is enhancing its marketing strategies and channel development, particularly in retail and e-commerce, to promote its products effectively [4].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [4][18]. Core Insights - The company reported a revenue of 889 million (down 8.04% year-on-year) and a net profit of 110 million (up 10.7% year-on-year) for Q1 2025, with a gross margin of 57.61% (up 15.11 percentage points) and a net margin of 12.45% (up 2.12 percentage points) [1][2]. - The decline in revenue is attributed to the ongoing optimization of the pharmaceutical commercial segment, while the increase in net profit is driven by higher revenues from the pharmaceutical industrial segment and improved product revenue structure [2]. - The company has made significant progress in cash flow, with net cash flow from operating activities increasing by 51.74% year-on-year, primarily due to increased sales collections from its pharmaceutical commercial subsidiaries [2]. Financial Performance and Forecast - The company’s revenue projections for 2025, 2026, and 2027 are 3.79 billion, 4.14 billion, and 4.56 billion respectively, with growth rates of 8%, 9%, and 10% [4][6]. - Net profit forecasts for the same years are 510 million, 650 million, and 800 million, with growth rates of 41%, 27%, and 23% [4][6]. - The report highlights a significant improvement in profitability metrics, with EPS expected to rise from 2.36 in 2024 to 5.20 in 2027 [6][12]. Strategic Initiatives - The company is reforming its marketing system to enhance performance, including implementing a profit contribution assessment alongside sales assessments, optimizing organizational structure, and advancing digitalization efforts [3]. - The company plans to accelerate the commercialization of new products in the prescription line and expand its market coverage, particularly in grassroots healthcare [3]. - The introduction of innovative traditional Chinese medicine products is expected to contribute to future revenue growth [3].

1. Report Industry Investment Rating - No specific industry investment rating is provided in the report. 2. Core View of the Report - The cultural and tourism sector is worthy of attention due to the upgrade of consumer infrastructure. Multiple policy documents indicate that cultural and tourism and logistics projects may be the focus of consumer - type infrastructure. The domestic tourism market in 2024 showed significant growth in tourist numbers and spending, with a local and short - distance travel trend, which may increase the cultural and tourism attractiveness of cities near large population centers [2][10][14]. 3. Summary by Related Catalogs 3.1 Policy Background of Consumer - Related Infrastructure Construction - In April 2025, the "Notice on the Central Government Financial Support for the Implementation of Urban Renewal Actions in 2025" proposed consumer - type infrastructure construction, aiming to improve urban infrastructure. In February 2025, the State Council Executive Meeting proposed to promote high - quality development of service consumption and improve relevant standards in cultural tourism and other fields [2][10]. - Since 2020, there have been a series of policies promoting the construction of consumer - related infrastructure, including the development of new consumption models, the construction of international logistics systems, and the digital transformation of cultural and tourism industries [11]. 3.2 Case of Tianjin - In 2024, Tianjin planned to promote the overall improvement of the cultural industry through "Three New" (technological innovation, industrial renewal, urban renewal) and "Three Quantities" (revitalizing stock, cultivating increment, improving quality). From 2023 to August 2024, Tianjin revitalized a large amount of land and real estate, achieving an income of 72.68 billion yuan. The protection and utilization of intangible cultural heritage and historical and cultural blocks increased the cultural and tourism attractiveness of Tianjin [11][13]. - In 2024, the number of tourists in Tianjin increased significantly. In the first half of the year, it received 1.3 billion domestic tourists, with a 18.5% year - on - year increase in the number of tourists and a 7.9% increase in tourist spending. During the National Day holiday, the number of tourists increased by 14% compared with 2023, and tourist spending increased by 36.9% [13]. 3.3 Domestic Tourism Market in 2024 - According to the "China Domestic Tourism Development Annual Report 2024", domestic tourism spending reached 5.75 trillion yuan in 2024, a year - on - year increase of 17.1%. The per - capita consumption reached 1024.04 yuan, a year - on - year increase of 2.0%. The growth rate of total tourism spending was much higher than that of per - capita consumption, indicating a significant increase in the number of tourists. Domestic tourism showed obvious local and short - distance characteristics, with short - distance provincial tourism accounting for 74.9% of all domestic tourism [14]. 3.4 Jiangsu Province's Key Projects in 2025 - The Jiangsu Provincial Department of Culture and Tourism announced 79 key cultural and tourism industry projects in 2025, with a total planned investment of 100.416 billion yuan and an annual planned investment of 22.653 billion yuan. There are also multiple modern logistics projects planned [15]. 3.5 Investment Targets - Anhui Jiuhua Mountain Cultural and Tourism Health - Care Group Co., Ltd. (102400591.IB) has 700 million yuan in outstanding bonds. It holds 29.93% of the equity of Jiuhua Tourism (603199.SH). Jiuhua Tourism had an operating income of 760 million yuan in 2024, showing stable growth [20]. - Shaanxi Tourism Group (042480152.IB) is a large - scale state - owned tourism group in Shaanxi Province. In 2024, Xi'an's cultural and tourism market was booming, receiving 306 million tourists and achieving a total tourism revenue of 376 billion yuan, with year - on - year increases of 10.3% and 12.3% respectively [20]. 3.6 Other Tourism - Related Entities - High - valued entities in the tourism industry are listed, including Jilin Changbai Mountain Development and Construction (Group) Co., Ltd., Jiangxi Tourism Group Co., Ltd., Chifeng State - owned Capital Operation (Group) Co., Ltd., etc., with details of their outstanding bonds, remaining terms, and valuations [4][21][24].

Group 1 - The report highlights that the Chinese stem cell market is expected to reach approximately 26.5 billion yuan by 2024, with the collection, preparation, and storage segment accounting for nearly 16 billion yuan [7][10]. - The recent inclusion of "stem cell research and organ repair" in the national key R&D plan by the National Health Commission is seen as a significant positive signal for the development of the stem cell industry [6][10]. - China's stem cell storage rate is currently below 3%, significantly lower than the 15%-20% rates in developed countries, indicating substantial market potential given the annual birth rate of over 10 million newborns [7][10]. Group 2 - The report notes that the pharmaceutical sector's performance was mixed, with only one-third of the six sub-industries showing positive returns during the week of April 14-18, 2025 [12]. - Among the pharmaceutical sub-industries, Traditional Chinese Medicine II and Chemical Pharmaceuticals showed the highest gains, while Medical Devices and Biological Products experienced declines [12][16]. - The report emphasizes the importance of the traceability system for pharmaceuticals, with over 95% of designated medical institutions connected to the traceability code system by March 2025, enhancing the safety and efficiency of medical insurance funds [20].

Group 1 - The report highlights that the recent announcement by the National Health Commission on April 1, 2025, includes "stem cell research and organ repair" in the national key R&D plan, indicating strong governmental support for the stem cell medical field [3][8][9] - According to the report from Qianzhan Research Institute, the Chinese stem cell market is expected to reach approximately 26.5 billion yuan by 2024, with the collection, preparation, and storage segment accounting for nearly 16 billion yuan [9][12] - The current stem cell storage rate in China is below 3%, significantly lower than the 15%-20% rates in developed countries, suggesting substantial market potential given the annual birth rate of over 10 million newborns in China [9][12] Group 2 - The report reviews the performance of the pharmaceutical sector from April 14 to April 18, noting that only two out of six sub-industries recorded positive returns, with Traditional Chinese Medicine II and Chemical Pharmaceuticals leading the gains [15][16] - The report indicates that the chemical pharmaceutical sector has the highest valuation at 63.79 times PE, while the lowest is in the pharmaceutical commercial sector at 19.82 times PE [15][16] - The report tracks various industry hotspots, including the implementation of a traceability code policy for drug procurement and the approval of the nine-valent HPV vaccine for males in China [20][21][23]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The revision of the No. 3 Guideline in 2025 has increased the requirements for urban investment companies, leading to a decline in the issuance and net financing of urban investment bonds in Q1 2025. The supply of urban investment bonds is expected to continue to shrink, increasing the scarcity of assets in the market and the difficulty of institutional investment [2][17]. - Amid the US "reciprocal tariff" policy, Chinese ministries and local governments are implementing measures to stabilize the foreign trade market and help enterprises find non - US export channels. The impact of tariffs on China's exports to the US may be short - term, and the impact is expected to gradually decrease in the long run [4][37]. - For urban investment bonds, different investment strategies can be adopted based on different regions and durations. For industrial bonds, it is recommended to wait for adjustment to achieve cost - effectiveness before allocation. For financial bonds, short - duration second - tier and perpetual bonds of national and joint - stock banks can be focused on [3][70][75]. 3. Summary According to Relevant Catalogs 3.1 3 - Guideline Revision and Urban Investment Bonds - **Guideline Revision**: On March 28, 2025, the Shanghai Stock Exchange issued the revised No. 3 Guideline, expanding the number of clauses from 56 to 66 and raising requirements for urban investment companies in transformation, bond issuance, and debt management [2][12]. - **Market Situation**: In Q1 2025, the issuance and net financing of urban investment bonds decreased significantly year - on - year. The issuance scale decreased by 14.14% and 14.71% compared with Q1 2023 and Q1 2024 respectively, and the net financing scale decreased by 36.92% and 83.75% respectively. The supply of urban investment bonds is expected to continue to shrink [2][17]. - **Investment Suggestions**: - By remaining maturity, 1 - year - or - less urban investment bonds have the largest scale, and 3 - 5 - year bonds have a convexity with an average valuation of 2.58%, suitable for earning coupon and riding returns. - By implied rating, AA(2) urban investment bonds have the largest scale, and AA - and below bonds have higher valuations. Institutions seeking higher returns by lowering credit quality can focus on bonds maturing within 2 years. - By region, short - term urban investment bonds in key provinces within 2 years can be focused on for coupon income, while 3 - 5 - year urban investment bonds issued by provincial and municipal platforms in non - key provinces can be considered for capital gains [3][23][28]. 3.2 Urban Investment Bonds - Foreign Trade Situation and Policies - **US Tariff Policy**: On April 2, 2025, US President Trump signed an executive order on "reciprocal tariffs", which took effect on April 5 and April 9 for different countries and regions. The US has been continuously adjusting tariff rates [32]. - **Chinese Response**: Chinese ministries and local governments are implementing measures to stabilize the foreign trade market, such as the "one - to - one" assistance for foreign trade enterprises, various exhibitions, and "export - to - domestic - sales" measures. It is expected that more "package incremental foreign trade policies" will be announced in the future [4][37]. - **Expected Impact**: The US tariff policy may have a short - term negative impact on China's exports to the US in Q2, but in the long run, the impact may gradually decrease with the implementation of domestic "hedging" policies and the diversification of foreign trade channels [54]. 3.3 Urban Investment Bonds - Investment Suggestions - **Focus on "Economic Powerhouses"**: Provinces such as Guangdong, Jiangsu, Zhejiang, Fujian, Anhui, Shanghai, and Beijing have relatively good development momentum and debt management. Their provincial, municipal, and district - level platforms are relatively stable, and the duration can be appropriately extended to 5 years [54]. - **Regions with Debt Resolution Policies**: Regions such as Chongqing, Tianjin, Guangxi, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Gansu, Guizhou, and Yunnan, where significant debt - resolution policies or substantial funds have been implemented, can be considered with a duration of 3 - 5 years [55]. - **Cities with Strong Industrial Bases**: Prefecture - level cities with strong industrial bases and financial support, such as those in Guangxi, Hubei, Shanxi, Hunan, Henan, Sichuan, Chongqing, Shaanxi, and Jiangxi, can be focused on with a duration of 2 - 3 years [58][59]. 3.4 Industrial Bonds and Financial Bonds - Weekly Views - **Industrial Bonds**: Last week, most industrial bond yields adjusted. The market may be pre - trading tariff easing. It is recommended to wait for adjustment to achieve cost - effectiveness before allocation. Institutions with stable liability ends can focus on long - term bonds of central or provincial state - owned enterprises in public utilities, transportation, etc., and can appropriately lower the credit quality for bonds within 3 years. Institutions with less stable liability ends can focus on 2 - 3 - year industrial bonds with good liquidity [70]. - **Financial Bonds**: The market is affected by the repeated tariff policy and is in a narrow - range fluctuation. The yield trends of financial bond varieties have diverged, and most yields have declined compared with last week. It is not recommended to chase the rise of second - tier and perpetual bonds currently. Institutions with trading needs can focus on short - duration second - tier and perpetual bonds of national and joint - stock banks. For allocation, individual bonds of weak - quality joint - stock banks with high valuations can be considered [75]. 3.5 Primary Market Tracking - **Credit Bond Issuance**: Relevant charts show the historical issuance and net financing of credit bonds, but no specific analysis is provided in the text [83][84]. - **Financial Bond Issuance**: Relevant charts show the historical issuance and net financing of financial bonds, but no specific analysis is provided in the text [87][88]. - **Subscription and Cost**: Charts show the subscription and issuance costs of urban investment bonds and industrial bonds, but no specific analysis is provided in the text [91][92].