GOLDEN SUN SECURITIES·2025-08-27 11:47Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance [4]. Core Views - The company reported a stable performance in its 2025 semi-annual report, achieving a revenue of RMB 6.272 billion, a slight decrease of 0.17% year-on-year, while the net profit attributable to shareholders increased by 9.4% to RMB 1.281 billion [1]. - The growth in the company's profit was driven by the formulation segment and high-margin specialty raw material exports, despite a slight decline in revenue from certain segments due to market fluctuations [1][2]. - The company is entering a harvest period for its innovative research and development, with several products progressing through clinical trials and receiving regulatory approvals [2]. Financial Summary - The projected net profit for the company from 2025 to 2027 is expected to be RMB 2.268 billion, RMB 2.534 billion, and RMB 2.799 billion, reflecting growth rates of 10%, 11.7%, and 10.5% respectively [2]. - The company's earnings per share (EPS) is projected to increase from RMB 2.51 in 2025 to RMB 3.10 in 2027, indicating a positive trend in profitability [3]. - The price-to-earnings (P/E) ratio is expected to decrease from 16.6 in 2025 to 13.4 in 2027, suggesting that the stock may become more attractive relative to its earnings [3].