Investment Rating - The report gives a "Buy" rating for the company, marking the first coverage of the stock [2]. Core Insights - The introduction of professional managers has aided the company's reform, with product structure optimization driving profit improvement. The company has a rich product matrix in functional sugars and nutritional supplements, and has successfully adjusted its operational strategies during industry downturns, leading to a significant rebound in profit and gross margin improvement [1]. - The company stands to benefit from anti-dumping measures on erythritol and is positioned to capture the growing domestic market for allulose. With a production capacity of 30,000 tons per year, the company is expected to see volume and price increases in the European market due to its favorable anti-dumping tax rate [1]. - In 2024, all major segments achieved growth in both sales volume and gross margin, with a net profit of 111 million yuan, a year-on-year increase of 106%. The company has set ambitious performance targets for its stock incentive plan, reflecting confidence in future growth [1]. Summary by Sections Company Overview - Founded in 1997, the company is a leading player in the functional sugar industry in China, focusing on the research and production of biological (multi)sugars. It has established strategic partnerships with global giants like Coca-Cola and Yili, and has a comprehensive product system covering various functional sugars [18][21]. Management and Strategy - The company has undergone significant management restructuring, bringing in experienced professionals to enhance strategic planning and operational efficiency. The management team now combines international experience with local insights, which is expected to strengthen the company's competitive position in the functional sugar sector [24][25]. Financial Performance - The company forecasts net profits of 181 million, 216 million, and 260 million yuan for 2025, 2026, and 2027, respectively, with corresponding PE ratios of 20.07, 16.82, and 13.99 times. This indicates a strong growth trajectory compared to industry averages [2][12]. Product Segments - The company has diversified its product offerings, including prebiotics, dietary fibers, and sugar substitutes, which are experiencing rapid growth in demand. The market for these products is expected to expand significantly, driven by increasing consumer health awareness [1][7][23]. Market Outlook - The report highlights the potential for growth in the allulose market and the stability of the erythritol market, suggesting that the company is well-positioned to capitalize on these trends. The anticipated approval of allulose in China is expected to open up new market opportunities [1][10].