Investment Rating - The investment rating for Yunnan Baiyao is maintained as "Buy" [2][5] Core Views - The company's Q1 2025 performance slightly exceeded expectations, with revenue of 10.841 billion yuan (up 0.62% year-on-year) and net profit attributable to shareholders of 1.935 billion yuan (up 13.67% year-on-year) [5] - The industrial segment showed steady growth, with a revenue increase of 7.63% year-on-year, and a gross margin of 68.34%, reflecting a 1.76 percentage point increase [5] - The company is focusing on strategic growth through both internal enhancements and external investments, aiming to tap into high-potential segments and expand its business structure [5] Financial Forecasts - Projected revenue for 2024 is 40.033 billion yuan, with a growth rate of 2.36%, and expected to reach 43.753 billion yuan by 2027 [2][6] - Net profit attributable to shareholders is forecasted to grow from 4.749 billion yuan in 2024 to 6.554 billion yuan in 2027, reflecting a compound annual growth rate of approximately 10.26% [2][6] - Earnings per share (EPS) is expected to increase from 2.66 yuan in 2024 to 3.67 yuan in 2027, with corresponding price-to-earnings (P/E) ratios decreasing from 21.76 to 15.76 over the same period [2][6]