Guobang Pharma (SH:605507) KAIYUAN SECURITIES·2025-05-25 10:23Investment Rating - The investment rating for the pharmaceutical and biotechnology industry is "Positive" (maintained) [1] Core Views - The report highlights that the operating turning point for Guobang Pharmaceutical is evident, with the animal health business expected to contribute significantly to performance elasticity [5][13] - The pharmaceutical raw materials sector is maintaining a high level of prosperity due to upstream intermediate supply constraints and sustained post-pandemic demand [6][27] - The animal health raw materials sector is nearing the end of a market clearing phase, with prices for strong antibiotics showing a continuous recovery [7][42] Summary by Sections Guobang Pharmaceutical - Guobang Pharmaceutical has shown steady revenue growth, increasing from 4.206 billion in 2020 to 5.891 billion in 2024, with profits stabilizing around 800 million [13][14] - The gross margin for animal health raw materials has decreased significantly, reaching a historical low of 18.9% in 2024, while the gross margin for pharmaceutical raw materials has improved to 28.4% [17][19] - The company is experiencing a recovery in profitability, with gross margin, net margin, and ROE showing signs of improvement in 2024 [19][25] Pharmaceutical Raw Materials - The pharmaceutical raw materials segment, particularly macrolide antibiotics, is expected to maintain high profitability due to limited upstream supply and stable demand growth [6][27] - Key products include Azithromycin, Clarithromycin, and Roxithromycin, with the core raw material being thiocyanate erythromycin, which is crucial for production [27][30] Animal Health Raw Materials - The animal health raw materials market is stabilizing, with strong antibiotic prices recovering after a prolonged decline [7][42] - The market for strong antibiotics has shifted from over ten competitors to about three major players, with Guobang Pharmaceutical holding a significant market share [7][49] - The price of Florfenicol has dropped significantly from 500 RMB/kg in 2022 to around 180 RMB/kg in 2024, but is now showing signs of stabilization [7][50] Market Performance - In May, the pharmaceutical and biotechnology sector rose by 1.78%, outperforming the CSI 300 index by 1.96 percentage points, ranking first among 31 sub-industries [55][60] - The other biopharmaceutical sub-sector showed the highest growth, while the hospital sector experienced the largest decline [60][61]