ZHONGSHENGYAOYE(SZ:002317) KAIYUAN SECURITIES·2025-08-29 09:46Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4]. Core Views - The company achieved impressive profit growth in H1 2025, with a net profit of 188 million yuan, representing a year-on-year increase of 114.96%. The revenue for the same period was 1.3 billion yuan, showing a decline of 4.74% year-on-year. The report highlights the potential for growth driven by the company's innovative pipeline [4][5]. - The report has raised the profit forecast for 2025-2027, expecting net profits of 344 million yuan, 381 million yuan, and 425 million yuan respectively, with corresponding EPS of 0.40, 0.45, and 0.50 yuan per share [4][8]. Financial Performance - In H1 2025, the company's gross margin was 58.07%, an increase of 1.14 percentage points, while the net margin was 14.22%, up by 8.44 percentage points. The sales expense ratio was 33.69%, up by 1.26 percentage points, while the R&D expense ratio decreased to 2.92%, down by 1.29 percentage points [4][5]. - The revenue breakdown shows that traditional Chinese medicine revenue was 689 million yuan (down 10.14%), chemical medicine revenue was 495 million yuan (up 6.10%), and raw materials and intermediates revenue surged to 28 million yuan (up 250.30%) [5][6]. Product Pipeline and Innovation - The company is focusing on the "metabolism + respiratory" sectors, with key products in development such as RAY1225 injection for obesity and type 2 diabetes, which is currently in phase III clinical trials. Other products include ZSP1601 tablets and RAY0221, targeting various metabolic diseases [6][8]. - In the respiratory disease segment, the company is expanding the application of existing drugs and developing innovative small molecules for RSV infections [6].