Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative increase in stock price of over 20% compared to the benchmark index within the next six months [5][13]. Core Insights - The company reported a revenue of 3.11 billion yuan for the first half of 2025, reflecting a year-on-year growth of 9.47%. However, the net profit attributable to shareholders decreased by 12.88% to 633 million yuan due to lower product sales prices and changes in credit policies [3][5]. - The company has maintained its leading position in the blood products industry, with plasma collection increasing by 0.7% year-on-year to 1361 tons in the first half of 2025 [3][4]. - The company has decided to forgo the opportunity to acquire Pilin Biological, allowing its controlling shareholder, China National Pharmaceutical Group, to proceed with the acquisition. This strategic decision is expected to enhance the company's competitive position in the blood products sector [4]. Financial Projections - The company is projected to achieve revenues of 6.863 billion yuan, 7.881 billion yuan, and 8.916 billion yuan for the years 2025, 2026, and 2027, respectively. Corresponding net profits are expected to be 1.667 billion yuan, 1.978 billion yuan, and 2.296 billion yuan [5][8]. - The projected price-to-earnings (P/E) ratios for the years 2025, 2026, and 2027 are 24.43, 20.59, and 17.74, respectively, indicating a favorable valuation trend [5][8].

Core Viewpoint - China Resources Boya Biopharmaceutical is divesting 80% of its subsidiary Jiangxi Boya Xinhao Pharmaceutical Co., Ltd. for 213 million yuan, indicating a strategic shift due to ongoing financial struggles and market pressures [1] Group 1: Financial Performance - In 2024, Boya Biopharmaceutical's revenue from blood products accounted for 87.29%, but overall revenue declined by 34.58% to 1.735 billion yuan, while net profit increased by 67.18% to 397 million yuan, still below 2022 levels [2] - The company’s plasma collection volume reached 630.6 tons in 2024, a mere 10.4% increase, leaving a significant gap of nearly 60% from its "14th Five-Year Plan" target of 1,000 tons [2] Group 2: Industry Dynamics - The blood product market in China is entering an oligopolistic phase, with the top six companies, including Tian Tan Biological and Shanghai Raist, controlling 80% of plasma collection [2] - Recent acquisitions, such as Shanghai Raist's 4.2 billion yuan purchase of Nanyue Biological, intensify competition, highlighting the challenges faced by Boya Biopharmaceutical in scaling its operations [3] Group 3: Strategic Challenges - The blood product industry has high barriers to entry, with a scarcity of licenses since 2001, making resource acquisition critical for growth [3] - Boya Biopharmaceutical's operational cash flow for 2024 is only 430 million yuan, raising concerns about its ability to compete in a market where acquisition costs are rising [3] Group 4: Future Outlook - The divestment of Boya Xinhao is expected to generate short-term liquidity of 213 million yuan and optimize the asset structure, but long-term growth relies on breakthroughs in the blood product sector [4] - The market anticipates that by 2027, the blood product market in China will reach 78 billion yuan, with a compound annual growth rate of 11.6%, presenting both opportunities and risks for Boya Biopharmaceutical [4]