ZUO LI YAO YE(SZ:300181) Xin Lang Cai Jing·2025-07-10 06:38Core Viewpoint - The company is experiencing significant growth in revenue and net profit for the first half of 2025, with a strong performance in its core products and successful expansion into the OTC market [1][2]. Financial Performance - In H1 2025, the company expects revenue to grow approximately 12% year-on-year, with net profit projected between 368 to 388 million yuan, reflecting a growth of 24.3% to 31.06% [1]. - For Q2 2025, the company achieved revenue of 780 million yuan, a 2.7% increase, with net profit expected to be between 187 to 207 million yuan, representing a growth of 21% to 34% [1]. - The net profit margin for Q2 is projected at 25%, indicating a significant improvement in profitability [2]. Product and Market Development - The core product lines, particularly the Wuling series, are showing steady growth, while the Bailing series has seen an increase in growth rate [2]. - The company is actively expanding its OTC channels, focusing on partnerships with leading national chains and enhancing online presence to cater to younger consumers [2]. - The company has signed a joint research agreement with Zhejiang University to develop unique products related to the Wuling series and health products, with an investment of 20 million yuan [2]. Profit Forecast and Investment Rating - The company maintains profit forecasts for 2025-2027, estimating net profits of 655 million, 841 million, and 1.041 billion yuan, corresponding to PE ratios of 20, 16, and 13 times [3]. - The company retains a "buy" rating, anticipating accelerated growth in its product lines due to expanded partnerships and ongoing procurement initiatives [3].