Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][16] Core Views - The company has shown continuous revenue and profit growth due to product structure adjustments and the ramp-up of new production capacity. The approval of allulose in China is expected to drive market demand [2][4][16] - Allulose has functional advantages such as low calories, antioxidant properties, and neuroprotection, which will effectively fill the gap in China's functional sweetener market [14][16] - The company currently has a production capacity of 15,000 tons of allulose crystals and plans to build nearly 20,000 tons of allulose capacity in Thailand to meet domestic and international demand [3][14][16] Financial Performance - For the first half of 2025, the company achieved total revenue of 650 million yuan, a year-on-year increase of 22.29%, and a net profit attributable to shareholders of 171 million yuan, a year-on-year increase of 42.68% [2][4] - The second quarter of 2025 saw revenue of 337 million yuan, a year-on-year increase of 20.79%, and a net profit of 90 million yuan, a year-on-year increase of 36.36% [2][4] - The company’s net profit forecasts for 2025-2027 are 346 million yuan, 431 million yuan, and 503 million yuan, representing year-on-year growth rates of 40.8%, 24.7%, and 16.6% respectively [3][16] Market Outlook - The global allulose market has grown from 33 million USD in 2019 to 173 million USD in 2023, with a compound annual growth rate of 33.26%. It is expected to reach 545 million USD by 2030 [11] - The approval of allulose as a new food ingredient in China is anticipated to significantly boost domestic demand [8][10][16] - Allulose is positioned as a safer and more effective sugar substitute compared to artificial sweeteners, which have been linked to health risks [14][16]

Investment Rating - The investment rating for the company is "Outperform the Market" [4][11][28] Core Views - The company achieved a net profit attributable to shareholders of 246 million yuan in 2024, representing a year-on-year growth of 27%. In the first quarter of 2025, the net profit reached 81.4 million yuan, up 52% year-on-year [1][13] - The company’s revenue for 2024 was 1.152 billion yuan, a 32.64% increase compared to the previous year. In Q1 2025, revenue was 313 million yuan, growing 24.27% year-on-year [1][13] - The company is experiencing rapid growth in its dietary fiber and health sweetener segments, particularly with the increasing demand for resistant dextrin and polydextrose in the food and beverage industry [2][21] - The company is actively expanding its production capacity through projects such as the "Functional Sugar Drying Expansion Project" and the "Thailand Health Project," which are expected to enhance profitability in the future [3][26] Financial Performance Summary - In 2024, the company’s gross profit margin was 33.65%, an increase of 0.92 percentage points year-on-year, while the net profit margin was 21.33%, a decrease of 0.90 percentage points [1][13] - For Q1 2025, the gross profit margin improved to 39.74%, up 5.99 percentage points year-on-year, and the net profit margin increased to 25.99%, up 4.75 percentage points year-on-year [1][13] - The company’s revenue projections for 2025-2027 are 1.526 billion yuan, 1.829 billion yuan, and 2.140 billion yuan, respectively, with net profits expected to be 346 million yuan, 431 million yuan, and 503 million yuan [12][28] Business Segments Summary - The company’s main business segments include prebiotics, dietary fibers, health sweeteners, and other starch sugars. In 2024, the prebiotic segment generated 322 million yuan in revenue, a 25.43% increase, while the dietary fiber segment saw revenue of 624 million yuan, up 40.42% [2][21] - The health sweetener segment generated 156 million yuan in revenue, a 13.85% increase, with the contribution of allulose rising to 14.12% of total revenue, marking it as a significant source of income [2][21] - In Q1 2025, the prebiotic segment revenue was 85.8 million yuan, up 17.27%, while the dietary fiber segment revenue was 170 million yuan, up 25.40%. The allulose segment revenue surged to 49.8 million yuan, a remarkable increase of 105.31% [2][21] Future Growth Drivers - The company is investing in a new production base in Thailand, which is expected to enhance its brand, technology development, and market expansion capabilities, ultimately improving profitability and competitiveness [4][26] - The ongoing approval process for allulose in China and the steady growth of the overseas market are anticipated to further boost the company’s revenue and market presence [9][27]

Core Viewpoint - The company reported strong financial performance for 2024 and Q1 2025, with significant revenue and profit growth driven by product expansion and capacity enhancements [1][3]. Financial Performance - In 2024, the company achieved revenue of 1.152 billion yuan, a year-on-year increase of 32.64%, and a net profit attributable to shareholders of 246 million yuan, up 27.26% [1]. - For Q1 2025, revenue reached 313 million yuan, reflecting a year-on-year growth of 24.27%, with a net profit of 81 million yuan, marking a substantial increase of 52.06% [1]. Product Revenue Breakdown - In 2024, the dietary fiber series generated revenue of 624 million yuan, up 40.42%, while the prebiotic series brought in 322 million yuan, a 25.43% increase. The health sweeteners series earned 156 million yuan, growing by 13.85%. However, other starch sugars (alcohols) saw a decline, with revenue of 4 million yuan, down 72.48% [1]. - For Q1 2025, the dietary fiber series revenue was 170 million yuan, up 25.4%, the prebiotic series earned 86 million yuan, a 17.3% increase, and the health sweeteners series saw a remarkable growth of 105.3%, generating 50 million yuan. Other starch sugars (alcohols) achieved 2 million yuan, up 10.3% [2]. Profitability and Cost Management - The company's gross margin for 2024 was 33.65%, with a net profit margin of 21.33%. In Q1 2025, these figures improved to 39.74% and 25.99%, respectively, indicating a significant enhancement in profitability [3]. - The increase in gross margin is attributed to the production chain extension from new projects, a decrease in raw material prices, and the realization of scale efficiencies [3]. Capacity Expansion Projects - The company is actively constructing two major capacity enhancement projects: the functional sugar drying expansion project, expected to be completed by 2025-2026, and the Thailand health food raw material smart factory project, anticipated to start construction in Q2-Q3 2025 [4]. - The Thailand project aims to produce various sugar products, which will help reduce production costs and mitigate potential trade risks due to tariffs [4]. Market Opportunities - The domestic approval of D-allohexose as a new food raw material is expected soon, providing a significant market opportunity for the company's health sweeteners [5]. - The "Healthy China Action" initiative includes functional sweeteners in its support directory, with over 500 million yuan in subsidies planned for 2025, further bolstering the market for alternative sweeteners [5]. Profit Forecast - The company is projected to achieve net profits of 341 million yuan, 457 million yuan, and 624 million yuan for 2025-2027, representing year-on-year growth rates of 39%, 34%, and 37%, respectively [5].