CCGB(SZ:300138) HTSC·2025-08-26 04:01Investment Rating - The investment rating for the company is maintained at "Buy" with a target price of RMB 17.76 [1][2]. Core Insights - The company is experiencing accelerated recovery in performance, with an increase in market share in the plant extraction segment. The cottonseed business has turned profitable, significantly boosting overall profitability. The plant extraction business is leveraging cost-effectiveness to enhance market share during a price decline cycle [6][7][8]. Financial Performance - For the first half of 2025, the company reported revenue of RMB 3.66 billion, a year-on-year increase of 4.8%. The net profit attributable to the parent company was RMB 210 million, up 115.3% year-on-year. The second quarter of 2025 saw revenue of RMB 1.94 billion, a 10.4% increase year-on-year, with net profit rising 72.3% [6][7]. - The company's gross margin improved by 5.6 percentage points to 13.9% in the first half of 2025, driven by lower raw material costs and increased sales volume [8]. Revenue and Profit Forecast - Revenue projections for the company are as follows: RMB 6.99 billion in 2024, RMB 7.38 billion in 2025, RMB 8.29 billion in 2026, and RMB 9.16 billion in 2027. The net profit attributable to the parent company is expected to be RMB 94.05 million in 2024, RMB 357.94 million in 2025, RMB 462.80 million in 2026, and RMB 559.64 million in 2027 [5][9]. - The expected EPS for the years 2025, 2026, and 2027 are RMB 0.74, RMB 0.96, and RMB 1.16 respectively, reflecting significant growth [5][9]. Market Position and Strategy - The company has successfully increased its market share in the plant extraction sector, particularly with its main products such as chili red and lutein, which saw sales growth of 43% and 22% respectively in the first half of 2025. The company is focusing on a low-price strategy to gain market share while maintaining profitability [7][8].