Investment Rating - The report maintains a "Recommended" rating for the company [1][8] Core Views - The company's main profit margin continues to improve, and losses from new molecular businesses are narrowing [1][8] - In the first half of 2025, the company achieved revenue of 1.621 billion yuan, a year-on-year increase of 19.88%, and a net profit attributable to shareholders of 27 million yuan, a year-on-year increase of 115.91% [5][8] - The core business shows steady growth, with clinical late-stage and commercialization business revenue reaching 1.083 billion yuan, up 15.32% year-on-year [8] Financial Performance Summary - The company reported a gross margin of 28.89% in Q2, with a net profit of 31 million yuan, marking a turnaround from losses [5][8] - The small molecule raw material drug business generated revenue of 1.5 billion yuan, up 20%, while the small molecule formulation business saw a revenue decline of 7% to 61 million yuan [8] - The new molecular business revenue increased by 128% to 22 million yuan, with total losses from emerging businesses narrowing by approximately 12.6 million yuan year-on-year [8] Future Earnings Forecast - The report adjusts the profit forecast for 2025-2027, estimating net profits attributable to shareholders at 61 million, 254 million, and 501 million yuan respectively [8][11] - The company is expected to see continuous improvement in profitability, maintaining the "Recommended" rating [8][11]