Investment Rating - The report maintains a "Buy-B" rating for the company [7] Core Views - The company's Q2 performance was impacted by tariffs and tax rates, but a significant improvement in costs is expected in Q3 [1] - The company's tire sales growth outpaced the industry, with a 13% year-on-year increase in H1 2025, despite a decline in profit margins due to external policy impacts [3][4] - The company is enhancing its global supply chain resilience through expanded overseas production capabilities [5] Financial Performance Summary - In H1 2025, the company achieved total revenue of 17.59 billion yuan, a year-on-year increase of 16.1%, while net profit was 1.83 billion yuan, down 14.9% year-on-year [1] - Q2 2025 saw total revenue of 9.18 billion yuan, with a year-on-year increase of 16.8%, but net profit decreased by 29.1% year-on-year [1] - The gross margin and net margin for Q2 2025 were 24.3% and 8.9%, respectively, both showing declines compared to the previous year [3][4] Market Data - As of August 28, 2025, the closing price was 14.30 yuan, with a market capitalization of 47.02 billion yuan [3] - The company has a basic earnings per share of 0.56 yuan [4] Future Projections - The company is projected to achieve net profits of 4.1 billion, 4.87 billion, and 5.54 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding P/E ratios of 12, 10, and 9 [7] - Revenue is expected to grow from 25.98 billion yuan in 2023 to 45.46 billion yuan in 2027, reflecting a compound annual growth rate [9]

Core Insights - The company reported a revenue of 7.9 billion yuan for the first half of 2025, representing a year-on-year increase of 10.1%, and a net profit attributable to shareholders of 800 million yuan, up 15.7% year-on-year [1] - In Q2 2025, the company achieved a revenue of 4.11 billion yuan, a year-on-year growth of 11.2%, and a net profit attributable to shareholders of 430 million yuan, increasing by 15.4% year-on-year [1] - The company experienced improvements in domestic revenue and continued growth in overseas markets [1] Revenue Breakdown - In Q2 2025, revenue from yeast and deep processing products reached 2.98 billion yuan, up 11.7% year-on-year; sugar products generated 230 million yuan, a 20.1% increase; packaging products brought in 100 million yuan, up 3.6%; food raw materials accounted for 454 million yuan, while other businesses contributed 322 million yuan, with food raw materials and other businesses combined growing by 9.3% year-on-year [1] - Regionally, domestic revenue in Q2 2025 was 2.31 billion yuan, a 4.3% increase year-on-year, while overseas revenue was 1.78 billion yuan, up 22.3% year-on-year [1] Profitability Improvement - The company achieved a gross margin of 26.2% in Q2 2025, an increase of 2.3 percentage points year-on-year, attributed to a decline in raw material costs and stable pricing [2] - The net profit margin attributable to shareholders and the net profit margin excluding non-recurring items increased by 0.4 percentage points and 1.7 percentage points to 10.5% and 9.9%, respectively [2] Future Outlook - The company is expected to maintain high growth in overseas business in the second half of 2025, with favorable raw material costs likely to continue benefiting the financial statements [2] - Revenue projections for 2025-2027 are 16.89 billion yuan, 18.67 billion yuan, and 20.54 billion yuan, representing year-on-year growth of 11.2%, 10.5%, and 10.0%, respectively; net profit projections are 1.57 billion yuan, 1.78 billion yuan, and 1.94 billion yuan, with year-on-year growth of 18.8%, 13.3%, and 9.0% [2]