Investment Rating - The report maintains a "Buy" rating for Haoyuan Pharmaceutical (688131) with a target price based on the last closing price of 60.23 [1][4]. Core Insights - Haoyuan Pharmaceutical's Q2 revenue exceeded expectations, with a strong profit growth. The company achieved a revenue of 1.311 billion yuan in H1 2025, representing a year-on-year increase of 24.20%, and a net profit of 152 million yuan, up 115.55% year-on-year [4][5]. - The growth in revenue and profit is attributed to the rapid expansion of the high-margin life science reagent business and effective internal management and cost control [5][6]. - The front-end business generated 904 million yuan in revenue in H1 2025, a 29.2% increase year-on-year, with a gross margin of 63.0%, up 3.5 percentage points [5][6]. Revenue and Profit Forecast - The company forecasts revenues of 2.848 billion yuan, 3.598 billion yuan, and 4.564 billion yuan for 2025, 2026, and 2027, respectively, with growth rates of 25.47%, 26.33%, and 26.84% [6][7]. - The net profit is expected to reach 308 million yuan, 399 million yuan, and 517 million yuan for the same years, with growth rates of 52.65%, 29.56%, and 29.75% [6][7]. Business Segments Performance - The front-end business's revenue accounted for a significant portion of total revenue, with 9.04 billion yuan in H1 2025, while the back-end business generated 399 million yuan, reflecting a 13.6% year-on-year increase [5][6]. - The back-end business has a robust order backlog exceeding 590 million yuan, a 40.1% increase year-on-year, indicating strong future growth potential [6].