Core Viewpoint - The article highlights the growth and strategic focus of Yirui Biological, a leading player in the domestic food safety rapid testing industry, emphasizing its shift towards food safety testing and animal diagnostics after divesting its less profitable IVD business [3][5]. Food Safety Rapid Testing - Yirui Biological has established a comprehensive testing system covering all aspects of the food supply chain, including feed, breeding, production, processing, distribution, and retail [3]. - The company has a significant advantage in dairy product testing, gradually replacing most imported products in the domestic market and receiving certifications from various international authorities [3]. - Continuous high R&D investment has led to the development of two major technological barriers: self-synthesis of antigens and antibodies, and efficient pre-treatment technology, with self-synthesis being the core barrier [3]. Animal Diagnostics - Initially focused on economic animal diagnostics, Yirui Biological is expanding into the pet diagnostics market, which is expected to contribute to future growth [4]. - The company plans to develop services related to pet geriatric disease prevention and vaccines, as well as extend into the pet consumer sector to create a diversified business ecosystem [4]. Strategic Partnerships - In April 2025, Yirui Biological signed a significant cooperation agreement with global biotech giant Chr. Hansen, valued at approximately 600 million yuan, focusing on dairy product testing [4]. - This partnership is seen as a milestone for the company's international expansion, with expectations for continued large orders and potential diversification into non-dairy products [4]. Investment Outlook - Yirui Biological is positioned as a leader in the domestic food safety rapid testing sector, with a strategic focus shift expected to enhance performance [5]. - The company forecasts net profits of 25 million yuan, 50 million yuan, and 70 million yuan for 2025-2027, representing year-on-year growth rates of 44.9%, 100.3%, and 40.2% respectively [5]. - A DCF model estimates the company's overall valuation at 6 billion yuan, with a target price of approximately 15 yuan, initiating coverage with a "recommended" rating [5].