CCGB(SZ:300138) KAIYUAN SECURITIES·2025-10-28 08:47Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company's main business is experiencing a turnaround, with profit elasticity being released. The revenue for Q1-Q3 2025 was 5.05 billion yuan, a year-on-year decrease of 3.4%, while the net profit attributable to the parent company showed significant growth, with figures of 304 million yuan and 256 million yuan, reflecting year-on-year increases of 385.3% and 1659% respectively. The Q3 2025 single-quarter revenue was 1.39 billion yuan, down 19.9% year-on-year, but the net profit turned positive [4][5] - The profit forecast for 2025-2027 has been revised upwards due to improved profitability in the plant extraction and cottonseed businesses, with expected net profits of 395 million yuan, 449 million yuan, and 537 million yuan respectively [4][5] Financial Performance Summary - For Q1-Q3 2025, the plant extraction business generated revenue of 2.499 billion yuan, a year-on-year increase of 7.35%, with a gross margin of 20.86%, up 4.91 percentage points. The cottonseed business had revenue of 2.353 billion yuan, a year-on-year decrease of 10.54%, but the gross margin improved by 8.05 percentage points [5][6] - The gross margin for Q3 2025 increased by 10.56 percentage points year-on-year, contributing to a significant improvement in profitability. The net profit margin for Q3 2025 increased by 8.54 percentage points year-on-year [6] Business Outlook - The core business is expected to continue improving, with the gross margin anticipated to sustain its upward trend in 2026. The market share for the company's chili red pigment and chili extract is increasing, and with the supply of upstream lutein raw materials decreasing, both market share and processing profits for lutein are expected to improve [7]