Core Viewpoint - Minsheng Health's H1 2025 performance met market expectations, with revenue and net profit showing solid growth, driven by core product categories and new product launches [1][2]. Financial Performance - In H1 2025, Minsheng Health achieved revenue of 462 million and net profit of 83 million, representing year-on-year growth of 16.37% and 6.65% respectively [1]. - In Q2 2025, revenue and net profit were 191 million and 20 million, with year-on-year increases of 17.32% and 7.08% [1]. - The core category of vitamins and mineral supplements generated revenue of 426 million, accounting for 92.15% of total revenue, with a year-on-year growth of 9.84% [1]. Profitability and Cost Structure - The gross margin for the vitamin and mineral series decreased by 6.91 percentage points to 54.78% in H1 2025, primarily due to changes in product mix [1]. - Overall gross margin in Q2 2025 was down by 5.09 percentage points to 51.92%, with selling, administrative, and R&D expense ratios showing slight variations [1]. - Net profit margin decreased by 0.88 percentage points to 10.42% [1]. Product Development and Market Position - The company has a strong market position due to its R&D advantages and plans to expand its product matrix in the vitamin and mineral category [2]. - New products, including varenicline tartrate tablets and minoxidil solution, are expected to launch in Q3 2025, which will significantly boost H2 performance [2]. - The acquisition of Zhongke Jiayi has enabled the company to self-supply probiotics, enhancing its product offerings [2]. Earnings Forecast and Investment Rating - The company’s net profit forecasts for 2025-2027 have been adjusted to 107 million, 129 million, and 149 million, reflecting year-on-year growth rates of 16.25%, 20.62%, and 15.96% respectively [3]. - The current price-to-earnings ratios are projected at 51x, 42x, and 37x for the respective years [3]. - The investment rating remains "Buy" based on the solid growth prospects and product performance [3]. Analyst Ratings - In the last 90 days, two institutions have provided ratings for the stock, with one rating it as "Buy" and the other as "Overweight" [4].