CABIO(SH:688089) Great Wall Securities·2025-09-01 10:48Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [5][22]. Core Viewpoints - The company's revenue and net profit have shown continuous growth, driven by increased demand for ARA and DHA products. The revenue for the first half of 2025 reached 444 million yuan, a year-on-year increase of 17.60%, while net profit rose by 59.01% to 108 million yuan [1][2]. - The company is well-positioned to benefit from favorable market conditions, including the replacement of old national standards for infant formula and a rebound in the maternal and infant consumption market, which is expected to sustain the demand for its core products [4][12]. - The company is actively expanding its business across multiple sectors, including health, animal nutrition, and beauty, which is anticipated to drive overall growth and enhance its market position [9][10]. Financial Summary - The company's projected financial performance shows significant growth, with expected revenues of 703 million yuan in 2025, 834 million yuan in 2026, and 964 million yuan in 2027, reflecting growth rates of 26.5%, 18.7%, and 15.5% respectively [1][12]. - The net profit is projected to reach 190 million yuan in 2025, 220 million yuan in 2026, and 289 million yuan in 2027, with growth rates of 52.6%, 16.0%, and 31.6% respectively [1][12]. - The company's return on equity (ROE) is expected to improve from 10.7% in 2025 to 13.1% in 2027, indicating enhanced profitability [1][12]. Market Dynamics - The demand for ARA and DHA products is expected to continue growing due to the increasing market concentration among leading infant formula brands and the accelerated replacement of fish oil DHA with algal oil DHA [4][12]. - The company is leveraging its partnerships with major clients and enhancing product offerings to capture market opportunities, particularly in the context of the "Healthy China" strategy and consumption upgrades [4][9].