Core Viewpoint - The report indicates that Tiankang Biological (002100) has shown steady revenue growth and improved profitability in H1 2025, with a buy rating recommended by China Galaxy Securities [1][2]. Financial Performance - In H1 2025, the company's revenue reached 8.847 billion yuan, a year-on-year increase of 10.68%, with net profit attributable to shareholders at 338 million yuan, up 22.27% year-on-year [2]. - For Q2 2025, revenue was 4.666 billion yuan, also reflecting a 10.68% year-on-year growth, but net profit decreased by 14.59% to 190 million yuan [2]. - The comprehensive gross margin for H1 2025 was 12.07%, an increase of 0.58 percentage points year-on-year, while the expense ratio decreased to 7.15% [2]. Business Segments - The revenue contributions from various segments in H1 2025 included pig farming (2.849 billion yuan, -0.95% YoY), feed (2.434 billion yuan, -14.24% YoY), agricultural product processing (1.449 billion yuan, +97.6% YoY), veterinary biological products (482 million yuan, -3.67% YoY), and corn silage (1.305 billion yuan, +72.32% YoY) [2][3]. - The company aims to achieve a pig output target of 3.5 to 4 million heads in 2025, representing a year-on-year increase of 15.57% to 32.08% [3]. Research and Development - In H1 2025, the company invested 113 million yuan in R&D, a decrease of 26.85% year-on-year, with new products expected to drive future growth in the vaccine business [4]. - The targets for animal vaccines and feed sales in 2025 are set at 2.4 billion milliliters and 2.9 million tons, respectively, indicating growth of 16.28% and 2.9% year-on-year [4]. Investment Outlook - The company is positioned as an integrated farming enterprise with stable growth in feed and veterinary medicine businesses, alongside a positive outlook for pig farming due to ongoing cost optimization [4]. - EPS forecasts for 2025 and 2026 are 0.54 yuan and 0.68 yuan, respectively, with corresponding PE ratios of 12 times and 10 times [4].

Investment Rating - The report maintains a "Recommended" rating for the company TianKang Biological (stock code: 002100.SZ) [1] Core Views - The company has shown significant improvement in its financial performance for 2024, with revenue of 17.176 billion yuan, a year-on-year decrease of 9.72%, but a return to profitability with a net profit of 605 million yuan, compared to a loss of 1.363 billion yuan in 2023 [3] - The company aims to achieve a pig output target of 3.5 to 4 million heads in 2025, representing a year-on-year increase of 15.57% to 32.08% [3] - The improvement in profitability is attributed to reduced breeding costs and fluctuating pig prices, leading to enhanced breeding profits [3] Financial Performance Summary - For 2024, the company reported a comprehensive gross margin of 12.14%, up 9.22 percentage points year-on-year, and a net profit margin of 3.52% [3] - In Q1 2025, the company achieved a revenue of 4.180 billion yuan, a year-on-year increase of 10.68%, and a net profit of 148 million yuan, up 174.02% year-on-year [3] - The company’s vaccine sales increased by 18% in 2024, with a gross margin of 63.07% [3] Financial Forecasts - The projected revenue for 2025 is 19.096 billion yuan, with a growth rate of 11.18%, and a net profit of 741.89 million yuan, reflecting a growth rate of 22.62% [5] - The expected EPS for 2025 is 0.54 yuan, with a PE ratio of 11 times [3][5] - The company’s total assets are projected to decrease from 17.562 billion yuan in 2024 to 15.685 billion yuan in 2025 [6] Operational Metrics - The company’s asset-liability ratio is expected to improve from 51.49% in 2024 to 41.96% in 2025 [7] - The company aims for a total vaccine sales target of 2.4 billion milliliters (doses) in 2025, a year-on-year increase of 16.28% [3]