Core Viewpoint - Guohai Securities initiates coverage on Zhonghui Biological-B (02627) with a "Buy" rating, predicting the company will achieve profitability by 2027, leading to a dual boost in performance and valuation known as the "Davis Double" [1] Group 1: Company Overview - Zhonghui Biological, established in 2015, focuses on the research, manufacturing, and commercialization of innovative vaccines and traditional vaccines using new technologies [1] - The company has launched its quadrivalent influenza virus subunit vaccine, with the 23-valent pneumococcal polysaccharide vaccine and freeze-dried human rabies vaccine having completed Phase I clinical trials [1] Group 2: Product Highlights - The Huierkangxin quadrivalent influenza virus subunit vaccine offers higher safety and good immune effects, targeting the high-end influenza vaccine market [1] - The domestic market for influenza vaccines has significant growth potential, with the quadrivalent subunit vaccine being the first and only of its kind in China, providing comprehensive protection and lower adverse reaction risks compared to split vaccines [1] - The product is expected to generate revenue of 260 million RMB in 2024, representing a 398% year-on-year increase, and is currently in a rapid growth phase [1] Group 3: Rabies Vaccine Development - The company is developing a human diploid cell rabies virus vaccine, which is based on WHO's gold standard technology, aiming to capture a high-quality rabies vaccine market worth billions [2] - With approximately 18 to 20 million people in China receiving rabies vaccinations annually, the company’s vaccine shows good safety in Phase I trials and offers convenient administration options [2] - The Phase III clinical trial for the rabies vaccine has been initiated as of December 2025 [2] Group 4: Research and Development Pipeline - The company has established a leading core technology platform that supports both traditional vaccine upgrades and innovative vaccine development, with a total of 11 vaccines in the research pipeline [2] - The focus is on unmet public health needs and high commercial potential indications, with the company actively developing additional vaccines to address market gaps [2]