SIRIO(SZ:300791) Huachuang Securities·2026-01-12 08:13Investment Rating - The report maintains a "Strong Buy" rating for Xianle Health, with a target price of 32.5 CNY [2][6]. Core Views - The company is progressing with the divestiture of its BFPC subsidiary, which is expected to improve cash flow and allow for a focus on core business operations. The divestiture is anticipated to be completed by the end of January 2026, with corresponding asset impairment recognized in 2025 [2][6]. - Xianle Health plans to issue H-shares and list on the Hong Kong Stock Exchange, aiming to enhance its capital strength and competitive position globally. The funds raised will be directed towards global capacity expansion, smart factory construction, and upgrades to R&D and supply chain systems [2][6]. - A three-year strategic plan (2026-2028) has been released, focusing on globalization, core capability enhancement, and digital empowerment. The company aims to replicate its efficient and high-quality systems to become the global leader in the health supplement CDMO sector [2][6]. Financial Summary - Total revenue is projected to grow from 4,211 million CNY in 2024 to 5,664 million CNY in 2027, with a compound annual growth rate (CAGR) of approximately 11.2% [7]. - The net profit attributable to the parent company is expected to recover from a decline in 2025 to 484 million CNY by 2027, reflecting a significant rebound [7]. - The earnings per share (EPS) is forecasted to increase from 1.06 CNY in 2024 to 1.57 CNY in 2027, indicating a positive trend in profitability [7].