CAHIC(SH:600195) Huachuang Securities·2025-09-29 05:48Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 8.7 yuan [2][10]. Core Insights - The company reported a revenue of 2.793 billion yuan for the first half of 2025, representing a year-on-year growth of 12.63%. The net profit attributable to shareholders was 81.76 million yuan, up 30.18% year-on-year, while the net profit excluding non-recurring items was 81.67 million yuan, reflecting a 39.35% increase [2][10]. - The pharmaceutical segment continues to show growth, significantly contributing to the overall revenue improvement. The revenue from the pharmaceutical segment reached 999 million yuan, a substantial increase of 57.36% year-on-year, driven by the performance of its subsidiary, Shengli Biological, which generated 321 million yuan, up 28.2% [10]. - The vaccine segment faced slight pressure, with revenue of 450 million yuan, down 7.86% year-on-year. However, the subsidiary Qianyuanhao in the poultry vaccine sector saw a revenue increase of 6.3% [10]. - The animal nutrition segment reported a revenue of 1.31 billion yuan, a slight decline of 2.31% [10]. Financial Performance Summary - The company achieved a gross margin of 17.20% in the first half of 2025, a decrease of 0.64 percentage points year-on-year. However, the second quarter showed signs of stabilization with a gross margin of 15.31%, up 0.18 percentage points year-on-year [10]. - The net profit margin improved to 3.19%, an increase of 0.84 percentage points year-on-year, marking the first positive growth after seven consecutive quarters of decline [10]. - The report projects net profits for 2025-2027 to be 232 million, 295 million, and 350 million yuan respectively, with corresponding earnings per share (EPS) of 0.23 yuan, 0.29 yuan, and 0.34 yuan [10]. Business Outlook - The livestock and poultry health business is expected to continue improving, supported by a strong profitability cycle in the breeding industry. The company is focusing on cost reduction and efficiency enhancement to drive traditional business growth [10]. - New business initiatives, particularly in the pet health sector, are gaining traction with the introduction of new products and brands aimed at end consumers [10]. - The export business is also showing positive growth, benefiting from the synergy of "medicinal materials and seedlings" and successful market expansion efforts [10].