Investment Rating - The investment rating for Yunnan Baiyao is maintained as "Buy" [2][5] Core Views - The company's performance in the first three quarters of 2025 met expectations, with revenue of 30.654 billion yuan (up 2.47% year-on-year) and net profit attributable to shareholders of 4.777 billion yuan (up 10.41% year-on-year) [5] - The industrial segment showed strong growth, with industrial revenue reaching 11.582 billion yuan, an increase of 9.06 billion yuan year-on-year, reflecting an 8.48% growth rate [5] - The company is focusing on enhancing its brand in traditional Chinese medicine and expanding its market share in oral care and personal care products [5] - The gross profit margin improved to 30.06%, up 1.66 percentage points year-on-year, driven by a higher proportion of high-margin business [5] - The company plans to distribute a special dividend of 1.818 billion yuan, representing 50.05% of the net profit for the first half of 2025, indicating a strong commitment to shareholder returns [5] Financial Summary - Revenue projections for 2024 to 2027 are 40.033 billion yuan, 40.922 billion yuan, 42.319 billion yuan, and 43.675 billion yuan, respectively, with growth rates of 2.36%, 2.22%, 3.41%, and 3.20% [2][6] - Net profit attributable to shareholders is expected to grow from 4.749 billion yuan in 2024 to 6.278 billion yuan in 2027, with growth rates of 16.02%, 9.83%, 10.35%, and 9.06% [2][6] - Earnings per share (EPS) is projected to increase from 2.66 yuan in 2024 to 3.52 yuan in 2027 [2][6] - The company maintains a high dividend payout ratio, exceeding 90% from 2022 to 2024, with an expectation of continued high dividends in the future [5]

Investment Rating - The investment rating for Yunnan Baiyao is maintained as "Buy" [2][7]. Core Views - The company's performance in the first half of 2025 met expectations, with revenue reaching 21.257 billion yuan, a year-on-year increase of 3.92%, and net profit attributable to shareholders at 3.633 billion yuan, up 13.93% year-on-year. The company plans to distribute a special dividend totaling 1.818 billion yuan, which accounts for 50.05% of the net profit for the first half of 2025 [7]. - The business structure continues to optimize, with strong growth in the industrial sector. The pharmaceutical segment's revenue grew by 10.8% year-on-year, driven by core products such as Yunnan Baiyao aerosol spray, which saw sales exceed 1.453 billion yuan, a significant increase of over 20.9% [7]. - The health products segment achieved revenue of 3.442 billion yuan, a year-on-year increase of 9.46%, with Yunnan Baiyao toothpaste maintaining the top market share in the domestic channel [7]. Financial Summary - Revenue projections for Yunnan Baiyao are as follows: 40.033 billion yuan in 2024, 41.555 billion yuan in 2025, 43.424 billion yuan in 2026, and 45.196 billion yuan in 2027, reflecting growth rates of 2.36%, 3.80%, 4.50%, and 4.08% respectively [2]. - Net profit attributable to shareholders is projected to be 4.749 billion yuan in 2024, 5.383 billion yuan in 2025, 6.138 billion yuan in 2026, and 6.774 billion yuan in 2027, with year-on-year growth rates of 16.02%, 13.34%, 14.02%, and 10.36% respectively [2]. - Earnings per share (EPS) are expected to be 2.66 yuan in 2024, 3.02 yuan in 2025, 3.44 yuan in 2026, and 3.80 yuan in 2027, with corresponding price-to-earnings (P/E) ratios of 22.04, 19.45, 17.06, and 15.46 [2].