Core Viewpoint - Tianji Holdings (01520) has seen a significant stock price increase following the announcement of a strategic cooperation framework agreement with COFCO Beijing, aimed at developing and marketing sports nutrition products [1] Group 1: Strategic Cooperation - The agreement involves deep strategic cooperation in the research, production, promotion, and sales of sports nutrition products, including sports water and supplements [1] - The collaboration is based on principles of complementary advantages, resource sharing, mutual benefits, and long-term stable cooperation [1] Group 2: Company Advantages - COFCO's Nutrition and Health Research Institute possesses strong capabilities in food raw material research and supply chain management, while the group has advantages in the operation and pipeline layout in the sports and new consumer markets [1] - This strategic partnership is expected to enhance resource complementarity and synergy, helping the group to enrich its product matrix and expand market space [1] Group 3: Future Growth Potential - The cooperation project marks an important milestone for the company in the new consumer IP field, effectively improving the company's expansion in consumer-level IP [1] - The partnership is anticipated to bring new business growth points and positively impact the company's future development [1]

Core Viewpoint - Tianji Holdings (01520) has seen a significant stock price increase following the announcement of a strategic cooperation framework agreement with COFCO Beijing, aimed at developing and marketing sports nutrition products [1] Group 1: Strategic Cooperation - The agreement involves deep strategic cooperation in the research, production, promotion, and sales of sports food products, including sports water and supplements [1] - The collaboration is based on principles of complementary advantages, resource sharing, mutual benefits, and long-term stable cooperation [1] Group 2: Company Advantages - COFCO's Nutrition and Health Research Institute possesses strong capabilities in food raw material research and supply chain management, while the group has advantages in the operation and pipeline layout in the sports and new consumer markets [1] - This strategic partnership is expected to enhance resource complementarity and synergy, helping the company to enrich its product matrix and expand market space [1] Group 3: Future Growth Potential - The cooperation project is considered a significant milestone for the company in the new consumer IP field, effectively improving its expansion in consumer-level IP [1] - The partnership is anticipated to enhance the company's overall competitiveness and potentially create new business growth points, positively impacting future development [1]

Group 1 - The core viewpoint of the news is that Tianji Holdings has entered into a strategic cooperation framework agreement with COFCO Food Technology Development, focusing on the development, production, promotion, and sales of sports nutrition products [1][2] - The collaboration will involve the establishment of a joint laboratory to focus on key research projects related to sports water products and their compliance with nutritional claims [1] - The partnership aims to leverage both companies' strengths in product development, supply chain integration, and market expansion, which is expected to enhance the overall competitiveness of the group and create new business growth opportunities [2] Group 2 - COFCO Beijing, a wholly-owned subsidiary of COFCO Nutrition and Health Research Institute, specializes in health-related technology and aims to provide comprehensive innovative solutions in the food ingredient and bioproducts sector [2] - The board believes that the collaboration will complement resources and create synergies, enriching the product matrix and expanding market space for the group [2] - This strategic cooperation is seen as a significant milestone for the company in the new consumer IP sector, potentially leading to positive impacts on future development [2]

Group 1 - Company Tianji Holdings (01520) announced a strategic cooperation framework agreement with COFCO Food Technology Development (Beijing) Co., Ltd. on January 8, 2026, focusing on the development, production, promotion, and sales of sports nutrition products [1] - The collaboration will establish a joint laboratory to focus on core R&D projects, including research on the characteristics of sports water products and ensuring compliance with sports nutrition food claims [1] - Both parties will collaborate on integrating the production supply chain, expanding market promotion channels, and building sales networks based on R&D outcomes, with specific details to be negotiated later [1] Group 2 - COFCO Beijing, a wholly-owned subsidiary of COFCO Nutrition and Health Research Institute, is a high-tech enterprise focused on the health sector, aiming to provide innovative solutions and one-stop services through product incubation and transformation [2] - The board believes that the strategic cooperation will leverage both parties' strengths, enriching the product matrix and expanding market space, marking a significant milestone in the new consumer IP field [2] - This partnership is expected to enhance the company's competitiveness and create new business growth opportunities, positively impacting future development [2]

Investment Rating - The report indicates a positive investment outlook for the nutrition functional food industry, highlighting its rapid growth and potential opportunities [4][13]. Core Insights - The nutrition functional food industry in China is experiencing rapid development, with a market size projected to reach CNY 2,331 billion in 2024 and CNY 3,499 billion by 2029, reflecting a compound annual growth rate (CAGR) of 8.5% from 2024 to 2029 [4][13]. - The overall nutrition health food market is expected to grow from CNY 5,223 billion in 2024 to CNY 7,203 billion by 2029, with a CAGR of 6.6% [4][13]. - The industry is supported by national strategies and increasing consumer demand for health and wellness products, driven by factors such as economic growth, rising incomes, and an aging population [4][13]. - The industry value chain includes upstream raw material suppliers, midstream manufacturers and brand operators, and downstream distributors and consumers [22][4]. Summary by Sections Market Overview - The nutrition functional food market is rapidly expanding, with significant growth potential due to increasing health awareness among consumers and supportive government policies [4][13]. - The market is characterized by a diverse range of products, including health snacks, weight management, sports nutrition, and beauty nutrition, with health snacks being the largest segment [19][4]. Industry Chain Analysis - The industry chain consists of raw material suppliers, manufacturers, and brand operators, with companies like Wuxi Jinghai focusing on upstream raw materials and Hengmei Health as a leading contract manufacturer [41][4]. - Wuxi Jinghai holds a market share of over 30% in the amino acid raw material sector, while Hengmei Health leads the contract manufacturing market with a 4.2% share [41][4]. Financial Performance - Wuxi Jinghai reported a revenue of CNY 2.03 billion in the first half of 2025, with a year-on-year growth of 18.67%, and a net profit of CNY 37.3 million, reflecting a 34.77% increase [42][44]. - Hengmei Health's performance has shown fluctuations, with revenue and net profit growth rates experiencing declines in recent periods [41][44]. Consumer Insights - The per capita consumption of nutrition functional foods in mainland China is CNY 166 in 2024, which is lower than in countries like the USA and Japan, indicating room for growth [21][26]. - The report emphasizes the need for improved consumer awareness and product differentiation to enhance market penetration [21][22].

Investment Rating - The report maintains an "Outperform" rating for the company [2][8]. Core Insights - The company reported a revenue of 562 million yuan for H1 2025, a year-on-year increase of 10.9%, but a significant decline in net profit by 67.9% to 15 million yuan [5][8]. - The Q2 2025 revenue was 369 million yuan, reflecting a 4.3% year-on-year growth, while net profit dropped by 91.3% to 3 million yuan, indicating that revenue met market expectations but profits fell short [5][8]. - The company aims to improve profitability in H2 2025 through various measures, including increasing the sales proportion of high-margin products and enhancing cost management [8]. Financial Data and Profit Forecast - The company’s total revenue projections for 2025-2027 are adjusted to 1.28 billion yuan, 1.61 billion yuan, and 2.05 billion yuan respectively, with corresponding net profits of 95 million yuan, 112 million yuan, and 151 million yuan [7][8]. - The gross margin for H1 2025 was reported at 32.2%, a decrease of 9.3 percentage points year-on-year, while the net margin was 2.7%, down 6.6 percentage points [8]. - The company’s earnings per share (EPS) for 2025 is projected at 0.77 yuan, with a price-to-earnings (PE) ratio of 28 [7][8]. Business Performance - The core business segments showed varied performance, with sports nutrition products growing by 24.7% year-on-year, while military supply and other segments faced declines [8]. - The company’s protein muscle gain products generated 327 million yuan in revenue for H1 2025, a 29.1% increase, despite overall market challenges [8]. - The energy supplement segment is expanding, with a notable 9.2% increase in revenue from energy gels [8]. Strategic Outlook - The company plans to enhance its product structure and cost management to counteract declining net profit margins [8]. - New channel development and market expansion efforts are underway to adapt to the evolving sports nutrition consumer landscape [8].