Investment Rating - The report assigns a "Buy" rating for the company with a target price of 13.5 CNY, based on a current price of 11.08 CNY [7]. Core Viewpoints - The company is positioned as a leader in the functional sugar sector, with a focus on optimizing management efficiency and strategies to return to a growth trajectory in 2024 [1][16]. - The company has set ambitious profit targets for 2025-2027, with a minimum net profit of 1.7 billion CNY in 2025 and cumulative targets of 3.82 billion CNY and 6.47 billion CNY for 2025-2026 and 2025-2027, respectively [1][25]. Summary by Sections Company Overview - The company specializes in the research, production, and sales of functional ingredients such as prebiotics, sugar-reducing sweeteners, and dietary fibers, with an annual capacity exceeding 500,000 tons and over 2,000 active customers [1][16]. Industry Transformation - The functional sugar industry is experiencing rapid growth driven by demographic changes, consumer preferences, and policy guidance, leading to a shift from traditional sweeteners to healthier alternatives [2][54]. Product Focus - The company is the largest producer of isomalto-oligosaccharides globally and has seen a 52.58% increase in sales revenue from erythritol in 2024, capitalizing on opportunities in international markets [3][56]. Future Prospects - The company plans to launch new products utilizing synthetic biology technology and expand production capacity for erythritol and allulose, with significant projects set to commence in 2025 [4][56]. Financial Forecast & Investment Recommendations - Revenue projections for 2025-2027 are 2.57 billion CNY, 2.79 billion CNY, and 3.07 billion CNY, with corresponding net profits of 170 million CNY, 221 million CNY, and 274 million CNY [5][6]. The report highlights the company's strong growth potential and recommends a target price based on a 30x PE ratio for 2025 [5].

Group 1: Company Strategy and Investments - The core purpose of investing in Peisheng Biotechnology is to promote the application of new raw materials in C-end products, enhancing market competitiveness in food, nutrition, and beauty sectors [4] - The establishment of Beijing Kaiyuan Juliy aims to leverage talent and resources in the capital to enhance business expansion and capital operation professionalism [4] Group 2: Production Capacity and Flexibility - The 85,000-ton project is an upgrade of the existing erythritol production line, enabling flexible manufacturing of multiple products based on market demand [4] - The 80,000-ton project focuses on upstream integration, producing liquid glucose from corn, ensuring stable raw material supply for various products [4] Group 3: Employee Stability - The number of employees remains stable, with no layoffs reported, emphasizing talent cultivation and a supportive work environment [4] Group 4: Market Performance and Sales - Erythritol revenue was 515.4 million yuan, with a sales price exceeding 10,000 yuan/ton, leading to a sales volume of less than 50,000 tons due to industry competition and EU anti-dumping measures [7] - Domestic market sales increased by 70.23% year-on-year, with the number of domestic distributors rising by 117, reflecting the growing demand for reduced sugar products [9] Group 5: Regulatory Challenges - The EU imposed a 156.7% anti-dumping duty on the company's products, effective for five years, prompting adjustments in production processes to comply with cost assessment rules [10] - The company is actively responding to the US "double anti" investigation, which has impacted sales in the US market, and is developing contingency plans [14] Group 6: Product Development and Innovation - The second 10,000-ton production line for allulose is under rapid construction, aiming to capture market share once approved for domestic use [13] - The company is enhancing production processes for high-activity biological raw materials, expanding its product range beyond erythritol [13] Group 7: Future Outlook and Shareholder Returns - The company has a three-year shareholder return plan (2024-2026) focusing on stable profit distribution while considering profitability and cash flow [7] - The company aims to diversify its market strategy, reducing reliance on single markets and enhancing resilience against policy risks [15]

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, a significant increase of 52% [1][13] - The company’s revenue for 2024 was 1.152 billion yuan, up 32.64% year-on-year, with a gross profit margin of 33.65% [1][12] - The company is expanding its production capacity with new projects, including a 30,000-ton dietary fiber project and a 15,000-ton crystalline fructose project, which are expected to contribute to sustained revenue and profit growth [1][11][28] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 1.152 billion yuan, a 32.64% increase year-on-year, and a net profit of 246 million yuan, up 27.26% [1][12] - For Q1 2025, the company achieved revenue of 313 million yuan, a 24.27% increase year-on-year, and a net profit of 81.4 million yuan, reflecting a 52.06% growth [1][13] - The gross profit margin for 2024 was 33.65%, while for Q1 2025, it improved to 39.74% [1][13] Business Segments - The company’s main business segments include prebiotics, dietary fibers, healthy sweeteners, and other starch sugars. In 2024, the prebiotics 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 healthy sweeteners segment, driven by increased demand for allulose in overseas markets, generated 156 million yuan, a 13.85% increase, with allulose accounting for 14.12% of total revenue [2][21] Expansion Projects - The company is actively advancing its "Functional Sugar Drying Expansion Project" and "Thailand Health Project," which are expected to enhance profitability. The functional sugar project aims to increase production capacity for isomaltulose and other products [3][25][26] - The Thailand production base project is in the planning stage and is expected to start construction in the second or third quarter of 2025, aiming to produce 12,000 tons of crystalline allulose and 7,000 tons of liquid allulose annually [4][26] Market Outlook - The global market for allulose 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 projected to reach 545 million USD by 2030 [9][27] - The approval process for allulose as a new food ingredient in China is progressing, with significant policy support expected to boost the market further [9][27]

Group 1 - The core viewpoint of the articles highlights that Baolingbao Biotech Co., Ltd. reported a revenue of 2.402 billion yuan in 2024, a year-on-year decline of 4.84%, while net profit surged by 105.97% to 111 million yuan, and non-recurring net profit increased by 254.56% to 124 million yuan [2] - The significant profit growth is attributed to the increase in sales of high-value-added products and effective cost control, with core businesses such as prebiotics, dietary fiber, and sugar-reducing sweeteners experiencing revenue growth of 16.02%, 14.52%, and 29.73% respectively [2] - Sales revenue of erythritol saw a remarkable increase of 52.58%, primarily due to the implementation of the EU anti-dumping policy, allowing Baolingbao to capture the European market with a minimum tax rate of 34.4% [2] Group 2 - Research and development innovation is another highlight for Baolingbao, with R&D expenditure rising to 4.08% of revenue and the R&D team expanding to 154 members, with a significant increase in the proportion of highly educated talent [3] - In March 2025, Baolingbao won the iSEE Global Innovation Award for its "high-purity breast milk oligosaccharide Shumuzi" technology, reinforcing its technological leadership in the functional sugar sector [3] - However, the company faces challenges such as fluctuations in raw material prices and intensified industry competition, particularly with a 31.98% year-on-year decline in revenue from the feed and by-products business, which has negatively impacted overall income [3] - Looking ahead, Baolingbao plans to intensify its expansion efforts in the European and American markets and advance its functional sugar alcohol project in the United States to enhance global competitiveness [3]