Core Viewpoint - Huatai Securities maintains a "Buy" rating for Green Leaf Pharmaceutical (02186), projecting steady revenue and profit growth from 2025 to 2027, while not factoring in potential BD transaction impacts on revenue [1] Group 1: Revenue and Profit Projections - Expected revenues for Green Leaf Pharmaceutical from 2025 to 2027 are projected to be CNY 6.316 billion, CNY 7.473 billion, and CNY 9.076 billion, representing year-on-year growth rates of 4%, 18%, and 21% respectively [1] - Forecasted net profits attributable to the parent company for the same period are CNY 606 million, CNY 777 million, and CNY 990 million, with year-on-year growth rates of 29%, 28%, and 27% respectively [1] - Corresponding valuations for the years 2025, 2026, and 2027 are estimated at 22X, 17X, and 14X [1] Group 2: Financial Performance and Cost Structure - In the first half of 2025, the company reported revenues of CNY 3.181 billion, a year-on-year increase of 3.46%, while net profit attributable to the parent company was CNY 313 million, reflecting a decline of 19.33% due to a high base from the previous year [2] - The overall gross margin for the first half of the year was 67.83%, an increase of 0.23 percentage points year-on-year [2] - The operating expense ratio was 66.12%, a decrease of 0.75 percentage points year-on-year, with R&D expense ratio at 6.08% (down 3.06 percentage points), sales expense ratio at 32.03% (up 4.36 percentage points), administrative expense ratio at 9.92% (up 0.51 percentage points), and financial expense ratio at 10.64% (up 1.6 percentage points) [2] - The fluctuation in expenses is considered reasonable, with the listing of ERZOFRI in the U.S. and the inclusion of Ruoxinlin in the national medical insurance directory expected to enhance sales of new products [2]