Core Viewpoint - The company reported strong financial performance for the first half of 2025, with revenue and net profit showing significant year-on-year growth, indicating a robust business trajectory and potential for future expansion [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 822 million yuan, representing a year-on-year increase of 12.50% [1][2]. - The net profit attributable to shareholders was 235 million yuan, up 24.55% year-on-year, while the net profit excluding non-recurring items reached 226 million yuan, reflecting a growth of 20.94% [1][2]. - The gross margin and net margin for H1 2025 were 60.11% and 28.58%, respectively, showing improvements of 309 basis points and 277 basis points compared to the previous year [2]. Business Segments - The raw material pharmaceutical business exhibited rapid growth, with revenue in H1 2025 reaching 700 million yuan, a year-on-year increase of 24.68% [3]. - Key product categories such as cardiovascular, respiratory, women's health, nervous system, and anti-infection raw materials showed steady growth, while new products in the peptide and oligonucleotide segments contributed to sales growth [3]. Future Outlook - The company anticipates continued growth in key products like Dydrogesterone, Abiraterone, and others, alongside new product launches expected to drive revenue increases over the next 3-5 years [2][4]. - The company is focusing on expanding hospital coverage for Dydrogesterone, with 1,754 new hospital additions in H1 2025, leading to a sales revenue of approximately 95.7 million yuan, a 3.5% increase year-on-year [2]. Investment Recommendations - The company is expected to maintain high growth rates in the coming years due to the ongoing expansion of existing products and the commercialization of potential blockbuster products [4]. - Revenue forecasts for 2025-2027 have been adjusted to 1.777 billion, 2.154 billion, and 2.591 billion yuan, respectively, with corresponding EPS estimates revised to 1.15, 1.47, and 1.84 yuan [4].

Group 1 - The company successfully passed the FDA cGMP inspection at its Badu factory from March 17 to March 21, 2025, indicating compliance with quality management systems and production environment standards required by the FDA [1][4] - The inspection covered six major systems: quality system, materials, production, packaging and labeling, facilities, and laboratory controls [1] - The FDA issued an Establishment Inspection Report (EIR) confirming that the company met the necessary requirements, which supports the company's efforts to expand into international markets [1] Group 2 - The inspection results were classified as NAI (No Action Indicated), which is a favorable outcome for the company [4] - The products involved in the inspection include active pharmaceutical ingredients such as Ipratropium, Abiraterone Acetate, and Pregabalin [4] - The successful inspection is expected to have a positive impact on the company's ability to enter and grow in global regulated markets [1]

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company is expected to achieve rapid growth in revenue and profit in 2024, driven by the robust development of its core API business and the rapid expansion of its formulation business. The company has high competitive barriers, a rich product portfolio, and a unique second growth curve [1][2] Financial Performance - In 2024, the company achieved revenue of 1.476 billion yuan (up 16.89% year-on-year) and a net profit attributable to shareholders of 355 million yuan (up 22.59 year-on-year). The net profit after deducting non-recurring items was 351 million yuan (up 34.25% year-on-year) [2] - For Q1 2025, the company reported revenue of 402 million yuan (up 19.78% year-on-year) and a net profit attributable to shareholders of 119 million yuan (up 45.30% year-on-year) [2] Growth Analysis - The API and intermediate business generated revenue of 1.141 billion yuan in 2024 (up 7.73% year-on-year), with cardiovascular products contributing 432 million yuan (up 43.81% year-on-year). The formulation business achieved revenue of 220 million yuan (up 144.87% year-on-year) due to increased terminal coverage of Dydrogesterone tablets [2][3] Profitability - The company's gross margin for 2024 was 58.56% (up 2.64 percentage points year-on-year), and the net profit margin was 24.04% (up 1.14 percentage points year-on-year). The improvement in profitability is attributed to the higher proportion of high-margin formulation business and improved margins in certain API products [4] Earnings Forecast and Valuation - The expected EPS for 2025, 2026, and 2027 are 1.14 yuan, 1.45 yuan, and 1.77 yuan per share, respectively. The company is projected to maintain steady revenue and profit growth supported by its high-barrier API and formulation products [5]