Core Viewpoint - The company's performance in the first three quarters of 2025 met expectations, with revenue and net profit showing significant year-on-year growth, driven by product optimization and investment income [1]. Financial Performance - Revenue for 1-3Q25 increased by 14% year-on-year to 25.4 billion, with a 1% increase in 3Q25 to 8.4 billion - Net profit attributable to shareholders rose by 46% year-on-year to 3.6 billion, with a 23% increase in 3Q25 to 1.1 billion - Non-GAAP net profit increased by 26% year-on-year to 2.7 billion, with an 8% increase in 3Q25 to 0.8 billion [1] Business Segments - The poultry segment remains stable, with a revenue increase of 8-10% in 1-3Q25, although 3Q25 faced slight pressure due to weak downstream farming - The livestock segment saw a revenue increase of approximately 25% in 1-3Q25, driven by the consolidation of Betway Antai - The formulation and raw materials segment experienced a revenue increase of about 5% in 1-3Q25, with a 10 percentage point increase in raw material gross margin year-on-year - The pet segment's vaccine revenue grew by approximately 15%, and supply chain revenue increased by about 20% in 1-3Q25 [2][3] Profitability and Cost Management - Gross margin for 1-3Q25 was 41.2%, up 0.3 percentage points year-on-year, attributed to revenue expansion and product optimization - Selling and administrative expense ratio decreased by 0.3 percentage points year-on-year due to improved production efficiency and reduced operating costs - Non-recurring gains for 1-3Q25 amounted to 0.93 billion, primarily from the disposal of non-current financial assets and the transfer of part of the subsidiary's equity - Overall, net profit margin improved by 3.1 percentage points year-on-year to 14.2%, while non-GAAP net profit margin increased by 1.1 percentage points to 10.6% [2] Future Development - The company is focusing on the research and development of cutting-edge products to ensure long-term growth - In the poultry segment, new veterinary drug registrations were obtained, maintaining a solid foundation - The livestock segment is advancing strategic partnerships with group clients and exploring mRNA vaccine development - The formulation and raw materials segment plans to enhance production processes and expand overseas markets while increasing high-margin products - The pet segment is leveraging its advantages and developing online sales channels, with ongoing research for new vaccines [3] Earnings Forecast and Valuation - The company maintains its net profit forecasts for 2025 and 2026 at 4.0 billion and 4.8 billion, respectively - The current stock price corresponds to a P/E ratio of 25 for 2025 and 21 for 2026 - The target price is set at 23, reflecting a P/E ratio of 26 for 2025 and 22 for 2026, indicating an 8% upside potential [4]