SDDSC(SZ:002041) HTSC·2025-08-28 08:32Investment Rating - The report maintains an "Accumulate" rating for the company [5][4] Core Views - The company's performance in H1 2025 was impacted by low grain prices, with revenue of 369 million RMB (down 9.41% YoY) and a net profit of 35.11 million RMB (down 33.42% YoY) [1][2] - The decline in performance is attributed to poor performance in the corn seed sector, with supply-demand imbalance leading to lower seed prices and intense competition [1][2] - The company is focusing on high-quality development through the establishment of a research and development center and an integrated breeding system [3] Summary by Sections Financial Performance - In H1 2025, the company reported revenue of 369 million RMB, with a net profit of 35.11 million RMB and a non-recurring net profit of -4.32 million RMB [1] - Q2 2025 revenue was 207 million RMB (up 17.97% YoY, up 27.08% QoQ), but net profit was 10.51 million RMB (down 53.48% YoY, down 57.25% QoQ) [1] - The corn seed segment saw revenue decline of 12.04% YoY, while wheat seed revenue increased by 118.01% YoY [2] Research and Development - The company has invested over 90% of the planned investment in its R&D center, with a total investment of 120 million RMB in the Qingdao Biotechnology R&D Center [3] - R&D expenses in H1 2025 were 42.27 million RMB, an increase of 12.23% YoY, with an R&D expense ratio of 11.44% [3] Profit Forecast and Valuation - The report forecasts net profits of 160 million RMB, 230 million RMB, and 280 million RMB for 2025, 2026, and 2027 respectively [4][8] - The target price is set at 12.06 RMB, based on a PE ratio of 67x for 2025 [4]