Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 31.36, reflecting a valuation premium due to the recent approval of the D-allohexose enzyme preparation [6][4]. Core Insights - The approval of the D-allohexose enzyme preparation as a food additive accelerates the domestic market's growth, positioning the company as a leader in the allohexose sector with significant advantages in capacity and technology [1][2]. - The company is expected to benefit from the increasing health trends, with its prebiotic and dietary fiber businesses gaining traction both domestically and internationally [1][3]. - The company has a current production capacity of 15,000 tons, ranking first in China and second globally, with anticipated new capacity coming online in the first half of 2026, which is expected to drive revenue growth [2][3]. Summary by Sections Company Overview - The company is a leader in the allohexose market and has a strong competitive edge in production capacity and technology, particularly in crystal products [1]. - The company is also a leader in functional sugars, benefiting from the rising health consciousness among consumers [1]. Market Dynamics - Supply-side dynamics indicate that while many companies plan to expand production, high investment costs and immature processes may lead to relatively rational supply growth [2]. - On the demand side, leading companies are beginning to industrialize the new generation of healthy sweeteners, with notable brands like Mengniu Dairy incorporating D-allohexose into their products [2]. Financial Projections - The company is projected to achieve revenues of RMB 1,737 million in 2026, reflecting a growth rate of 25.99% from the previous year [11]. - Net profit attributable to the parent company is expected to reach RMB 470.81 million in 2026, with an EPS forecast of RMB 1.12 [11]. - The report anticipates a stable growth trajectory for the company's prebiotic business and continued high growth in its allohexose overseas operations [3][4]. Valuation Metrics - The report maintains the earnings per share (EPS) estimates at RMB 0.87 for 2025 and RMB 1.12 for 2026, with a price-to-earnings (PE) ratio of 28x for 2026, reflecting a premium valuation due to market expansion prospects [4][11]. - The company’s market capitalization is approximately RMB 11,256 million, with a closing price of RMB 26.80 as of February 6, 2026 [8].

Investment Rating - The investment rating for the company is "Buy" with a target price of RMB 31.36, reflecting a valuation premium due to the recent approval of the D-allohexose enzyme preparation [6][4]. Core Insights - The approval of the D-allohexose enzyme preparation as a food additive accelerates the domestic market for allohexose, positioning the company as a leader with significant advantages in capacity and technology [1][2]. - The company is expected to benefit from the growing health trend, with its prebiotic and dietary fiber businesses gaining traction both domestically and internationally [1][3]. - The company has a tight production capacity currently, but new production lines for functional sugars are expected to drive revenue growth in 2026 [1][3]. Summary by Sections Company Overview - The company is a global leader in allohexose production, holding the largest market share in China and the second-largest globally, with a current capacity of 15,000 tons [2]. Market Dynamics - Supply-side dynamics indicate that while many companies plan to expand production, high investment costs and immature processes may lead to rational supply growth [2]. - Demand is being driven by leading domestic companies entering the market with innovative products, such as Mengniu Dairy's introduction of D-allohexose in its new formulations [2]. Financial Projections - Revenue is projected to grow significantly, with estimates of RMB 1,737 million in 2026, reflecting a 25.99% increase from the previous year [11]. - The company's net profit is expected to reach RMB 470.81 million in 2026, with an EPS forecast of RMB 1.12 [11]. - The company maintains a high profitability level, with an expected ROE of 20.15% in 2026 [11]. Valuation - The company is assigned a PE ratio of 28x for 2026, reflecting its growth potential and market position, with a target price set at RMB 31.36 [4][6].